BG Group Contracts Deepsea Metro I Drillship for Campaign Offshore Tanzania

Odfjell Drilling has on behalf of Deep Sea Metro Ltd. secured a contract with the BG Group for its first drillship; the Deepsea Metro I.

The contract with BG Group has a firm duration of 365 days with 3×6 months options and a contract value of approximately 175 million USD including mobilization and net taxes, excluding options.

CEO of Odfjell Drilling Mr. Simen Lieungh says:

“We are delighted that Deepsea Metro I has been chosen by the BG Group for this drilling campaign in Tanzania. We believe that the award of the contract to Deepsea Metro I by BG Group is a validation of Odfjell Drilling’s proven deepwater capabilities and ability to take a new build from yard straight into operations.”

On behalf of Deepsea Metro Ltd, Odfjell Drilling will be manager and operate Deepsea Metro I.

Deepsea Metro I is scheduled for delivery from Hyundai Heavy Industries (HHI) early June 2011. The first well is assigned to Woodside Energy for one well in South Korea prior to start of operations in Tanzania.

Deepsea Metro I is the first of two ultra deepwater drillships. Deepsea Metro II will be delivered from HHI in November 2011.

Final testing

Deepsea Metro I has commenced sea trials which are scheduled to finish by the end of this month. Sea trials are followed by final commissioning and system integration testing prior to delivery.

The Company

The Metrostar Group retain 60 percent ownership in Deepsea Metro I &II. Odfjell Drilling has a 40 percent ownership in the vessels. Odfjell Drilling is contractually responsible for the construction follow-up and management of the two vessels.

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Source: Odfjell, April 26,2011