Neptune preparing for busy year ahead with more wells added to Odfjell rig

Oil and gas company Neptune Energy has extended a contract for Odfjell Drilling’s Deepsea Yantai drilling rig to include three additional wells in the Norwegian North Sea next year.

The Deepsea Yantai is currently drilling the production wells at the Neptune-operated Fenja field in the Norwegian Sea. The final drilling operations on the Fenja field started in late October 2021.

Announcing the extension on Monday, Neptune said it will include one additional well at the Fenja field and two exploration wells within core areas of the Norwegian sector. Neptune also has the option to include additional wells under the current contract. As a result, the rig is fully occupied to mid-Q2 2022.

The Deepsea Yantai, owned by CIMC Raffles, has been operating for Neptune Energy in Norway since November 2019. This included completion of the appraisal and production wells at the two new Gjøa P1 and Duva fields, and several exploration wells including the Dugong discovery last year.

In a separate statement on Monday, Odfjell Drilling said it has also entered into a long-term frame agreement with Neptune Energy for potential future rig needs. The frame agreement was signed during a rig visit to Deepsea Yantai by Neptune Energy Norge Managing Director, Odin Estensen, and Odfjell Drilling CEO, Simen Lieungh.

Estensen said: “The extension of the contract for the Deepsea Yantai plays a vital role in our busy drilling programme for next year, including both development and exploration drilling in our core areas with a clear ambition to further grow our business on the Norwegian Shelf.”

Lieungh stated: “This is an important contract for us which ensures our position as the preferred supplier to Neptune Energy and further allows us to closely cooperate with regards to efficiency, solutions and projects.”