Unnamed Client Chooses Odfjell Drilling's Deepsea Atlantic Rig for North Sea Operations

Norwegian offshore drilling firm Odfjell Drilling said Friday it had signed two letters of intent with an unnamed client for the use of Odfjell's Deepsea Atlantic semi-submersible drilling rig in the North Sea region.

The LOIs have a combined firm duration of 23 months and a value of approximately $290 million excluding integrated services, upgrades/modifications or mobilization fees. In addition to the base value, the LOIs include provisions for performance bonuses and fuel incentives.

Following the firm period, the unnamed client will have four priced one-well extension options. The arrangement also provides for three further optional periods of approximately one-year each, with the rates for each period to be mutually agreed prior to exercising.

The LOI’s are contingent on license approval, with one of the LOIs also contingent on governmental approval and formalization of contract. The work will begin consecutively following the completion of the Special Periodic Survey, currently planned during the first half of 2024.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS said:"Over the last decade the Deepsea Atlantic has proven itself to be one of the most efficient ‘well factories’ in the harsh environment segment. We intend to build on this impressive track record and set a new efficiency benchmark for the industry to chase."

The rig is currently in Norway, on a contract with Equinor. In November 2022 Equinor exercised its priced options for the Deepsea Atlantic under which the rig will drill five additional wells on the Johan Sverdrup Phase 2 field development in the North Sea, offshore Norway.

The five wells are expected to take around 190 days to drill, and the extension is valued at around $64 million, Odfjell said at the time, adding that the deal extended the dual-derrick, dynamic-positioned semi-submersible drilling rig's firm backlog into the first quarter of 2024.

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