Odfjell rig adds two more Equinor wells to backlog

Offshore drilling contractor Odfjell Drilling has secured more work for its Deepsea Atlantic drilling rig with Equinor for operations in Norway.

Equinor has exercised two new wells for Deepsea Atlantic, Odfjell Drilling revealed on Friday.

The wells have 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 rig work will start after the completion of the current scope estimated to be in 1Q 2021.

Before the extension announced on Friday, Equinor has previously also exercised its option for three new wells for the Deepsea Atlantic under the same continued optionality mechanism. This extension was agreed in August 2020.

Odfjell said on Friday that the commercial terms for the latest extension 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.

This rig, along with sister rigs Deepsea Stavanger and Deepsea Aberdeen, is a dual derrick, dynamic-positioned unit of enhanced GVA 7500 design.