Equinor adds more work to Odfjell rig’s backlog

Equinor adds more work to Odfjell rig’s backlog

Norwegian state-owned giant Equinor has decided to exercise its option for additional wells to be drilled in Norway by the Odfjell Drilling-owned Deepsea Stavanger rig.

Deepsea Stavanger rig; Source: Equinor

Originally, Equinor awarded a contract for a firm period of three wells plus six optional wells with a value of about $33 million to the Deepsea Stavanger rig in May 2021. Due to this, the Deepsea Stavanger became the third rig from Odfjell’s fleet to join Equinor, along with its sister units Deepsea Atlantic and Deepsea Aberdeen contracted under the Master Frame Agreement, which Odfjell Drilling entered into with Equinor in May 2018.

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A few months later, Equinor also added an additional well to the contract for the rig, which was expected to keep it busy into the third quarter of 2022. The rig’s contract with Equinor on the NCS – with an expected duration of four months – started in February 2022.

In a statement on Monday, Odfjell Drilling informed that Equinor had exercised further work for the Deepsea Stavanger rig under the continued optionality mechanism provided for in the contract entered into by the parties in May 2021.

The offshore rig owner says that – thanks to this addition – the Deepsea Stavanger now has six remaining wells to drill, which are expected to occupy the rig into the late fourth quarter of 2022. However, Equinor still has the opportunity to exercise further wells under the continued optionality mechanism, which would extend the period in which the rig would be occupied.

According to Odfjell Drilling, the day rate is similar to the current contract, In addition, a notable performance incentive rate will apply when wells are delivered safely and ahead of target, while integrated services, provided through the contract, are compensated separately, based on the rig owner’s statement.

The Deepsea Stavanger is a sixth-generation deepwater and harsh environment semi-submersible of an enhanced GVA 7500 design.