Equinor prolongs Odfjell rig’s stay by piling up more work

Norwegian state-owned giant Equinor has decided to exercise its option for additional wells to be drilled by an Odfjell Drilling-owned rig offshore Norway.

Odfjell Drilling informed on Monday that Equinor had exercised further work for the Deepsea Stavanger rig under the continued optionality mechanism provided for in the contract the two inked in May 2021 for a firm period of three wells plus six optional wells with a value of about $33 million.

In September 2021, Equinor added an additional well to the contract for the rig with an expected duration of four months. This was expected to keep the rig busy into the third quarter of 2022 after it started in February 2022.

However, six months later, Equinor added more wells to the rig’s backlog, and followed it up in May 2022, when it awarded even more work, which was expected to keep the rig fully occupied until the first quarter of 2023. 

Following the latest addition, the Deepsea Stavanger rig now has six remaining wells to drill, which are expected to occupy it into the second quarter of 2023. Although, Equinor has the opportunity to exercise further wells under the continued optionality mechanism, which would extend the rig’s backlog.

Odfjell Drilling says that the day rate is similar to the current contract and a “notable performance incentive” rate, in addition, will apply when wells are delivered safely and ahead of target. The offshore drilling contractor also confirms that integrated services are provided through the contract and compensated separately.

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