Equinor adds third Odfjell rig to drilling fleet

Norwegian giant Equinor has awarded a drilling contract to Odfjell Drilling for the use of the sixth-generation semi-submersible rig Deepsea Stavanger, making it the third rig from Odfjell Drilling’s fleet to join Equinor.

Odfjell Drilling said on Wednesday that the contract has a firm period of three wells with an expected duration of four months and an expected start date during 1Q 2022.

The day rate will be similar to that agreed for the sister rig Deepsea Aberdeen under its Breidablikk contract, which is also set to start during the first half of 2022. This contract has a scope of fifteen firm wells and an estimated duration of 2.5 years. In addition, there are nine optional wells.

The rig owner said that the Deepsea Stavanger’s contract includes a notable performance incentive rate which shall apply when wells are delivered safely and ahead of target.

In a separate statement on Wednesday, Equinor said that the contract value is estimated at around $40 million for the fixed part of the contract.

Mette Ottøy, Equinor chief procurement officer, said: “Even though we are bringing in this rig on a short-term commitment, our objective is to achieve a more long-term programme, also for this Odfjell rig”.

The Deepsea Stavanger now joins sister units Deepsea Atlantic and Deepsea Aberdeen as being contracted under the Master Frame Agreement, which Odfjell Drilling entered into with Equinor in May 2018.

That contractual framework includes continued optionality mechanisms for the units which can keep the units working on a longer-term horizon.

Simen Lieungh, CEO Odfjell Drilling, said: “We are pleased to add Deepsea Stavanger to the Equinor fleet and see significant benefits in having three units operating with one of our core clients in the North Sea. Equinor and Odfjell Drilling have a shared target to build a mutually beneficial long term cooperation which focuses on safety, carbon reduction and cost efficiency.

“Working under the Master Frame Agreement structure we foresee further wells being allocated to our units in the years to come”.