Lundin takes West Bollsta offshore rig on a 10-well contract

Northern Drilling has won a contract for its harsh environment newbuild semi-submersible rig West Bollsta with Lundin Petroleum in Norway.

John Fredriksen’s Northern Drilling said on Thursday the drilling program for the rig, previously known as Bollsta Dolphin, included the development of the Luno II field and the Rolvsnes discovery in the Norwegian sector of the North Sea with contract start expected in the second quarter 2020.

The drilling company has noted that the Rolvsnes discovery and Luno II development remain subject to Lundin Norway’s fulfillment of certain conditions customary to finalizing the drilling program in Norway and expected to be lifted by Q3 2019.

“Northern Drilling continues to expand its presence in the North Sea and adds to its backlog a contract valued at approximately USD 200 million, excluding performance bonus and any additional services,” Northern Drilling said.

Norwegian rig brokers Bassoe Offshore have estimated the dayrate to be at around $330.000.

Apart from the ten wells agreed, Lundin will have four additional one-well options, that, it fully exercised, would keep the West Bollsta rig busy in Norway until Q3 2022.

“The day rates for the optional period will be based on a market-indexed rate which enables the company to benefit from the tightening harsh environment market,” Northern Drilling said.

The West Bollsta offshore drilling rig is capable of operating in harsh environment areas and in ultra-deep waters of up to 10,000 feet.

Northern bought the Bollsta Dolphin semi-submersible from Hyundai in December 2017. The original client for the rig, Fred. Olsen Energy canceled the order in 2015 as a result of the delays in delivery date. According to VesselsValue, the rig is still located in South Korea with Hyundai.

As with its previous newbuild semi-submersible drilling rig – the West Mira – NODL said the West Bollsta-Lundin contract would be managed by Seadrill.

Northern Drilling was established by billionaire John Fredriksen in 2015 to target rig acquisitions from distressed companies. Northern Drilling has so far bought the West Mira, the West Bollsta semi – subs, and the company in May last year also agreed with Daewoo shipyard to buy two newbuild drillships with an option to buy a third drillship.