Odfjell Drilling to bag $20 million from extra well with Equinor

Norwegian energy giant Equinor has added an additional well to a contract for the Odfjell Drilling-owned Deepsea Stavanger, which will see the rig busy into 3Q 2022.

Equinor has exercised one additional well to be added to the Deepsea Stavanger contract under the Continued Optionality mechanism in the contract entered into between the parties in May 2020, as part of the overall Master Frame Agreement.

Odfjell Drilling said on Monday that the additional well will follow the current firm period of three wells, which starts during the first quarter of 2022. The rig is now expected to be occupied into the third quarter of 2022.

The commercial value for the additional well is approximately $20 million. The Deepsea Stavanger’s contract includes a notable performance incentive rate which will apply when wells are delivered safely and ahead of target. Integrated services are provided through the contract and compensated separately.

The Deepsea Stavanger rig was added to Equinor’s fleet, making it the third rig from Odfjell Drilling’s fleet to join the Norwegian giant, back in May 2021.

The awarded contract was for a firm period of three wells with an expected duration of four months and an expected start date during 1Q 2022. The Deepsea Stavanger is joining 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.