The Deepsea Atlantic semi-submersible drilling rig will continue serving the Norwegian energy giant Equinor ASA until the end of the second quarter of 2027. Odfjell Drilling Ltd said in a media release that the unit will continue operating under previously agreed terms until the middle of the third quarter of 2026.
The current contract will expire in the third quarter of 2026. “After this, the unit will then continue with Equinor until end-Q2 2027 for an approximate incremental value of $148 million excluding escalation fees, integrated services, performance bonuses and fuel incentives”, Odfjell Drilling said.
“The contract maintains further optional periods of four priced one well options as well as three further optional periods of approximately one year each, with the rates for each period to be mutually agreed prior to exercising. If exercised, such options could keep the Deepsea Atlantic contracted into 2030”.
“With this additional backlog, the Odfjell Drilling-owned fleet is now fully booked until 2027 with a significant, predictable, and increasing revenue backlog. In addition, we are very pleased to add further tenure with our long-standing client, Equinor, with whom the Deepsea Atlantic has been contracted since 2009”, Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling, said.
Recently Odfjell Drilling and Aker BP ASA amended the contract for Deepsea Nordkapp. The extended contract term started January 1, 2025, directly continuing from the current firm contract and will run for a fixed duration of two years, Odfjell Drilling said.
The company added that the two additional years are compensated on a market-based rate mechanism. As previously agreed with Aker BP in 2022, the contract value for 2025 has a floor and ceiling day rate, resulting in a contract value of $124 million to $146 million, the company said.
Source: By Paul Anderson from Rigzone.com