Equinor awards one more well to Odfjell rig

Offshore drilling contractor Odfjell Drilling has been awarded more work for its Deepsea Atlantic rig by Equinor.

Deepsea Atlantic rig; Source: Odfjell Drilling
Deepsea Atlantic rig - Odfjell Drilling
Deepsea Atlantic rig; Source: Odfjell Drilling

Back in December 2020, Equinor exercised two new wells for the Deepsea Atlantic rig under the Master Frame Agreement.

In an update on Monday, Odfjell Drilling said that Equinor has now exercised one additional well for the Deepsea Atlantic.

This well, as well as the previous two, has been exercised under the Continued Optionality mechanism in the contract entered into between the parties in May 2018, as part of the overall Master Frame Agreement.

Odfjell said that the work will start after the completion of the current scope estimated to be in the second quarter of 2021.

The commercial terms are materially the same as for the recently announced Johan Sverdrup Phase 2 contract award.

To remind, Equinor in July 2020 signed a letter of intent with Odfjell Drilling for the Deepsea Atlantic rig to drill 12 wells during phase 2 of the Johan Sverdrup field development in Norway, following its work on phase 1.

The value of the fixed part of the agreement was estimated at around $150 million.

The drilling period under this contract is scheduled to start at the beginning of 2022. Operations will have a duration of twelve firm wells plus five optional wells.

Deepsea Atlantic is a sixth generation deepwater and harsh environment semi-submersible capable of operating at water depths of up to 3,000 meters.