Odfjell Drilling Wins North Sea Contracts Worth up to $1.04 Billion
OSLO, June 15 (Reuters) - Norwegian oil major Statoil has awarded rig firm Odfjell Drilling contracts worth up to $1.04 billion for work on the giant Johan Sverdrup field in the North Sea, Odfjell said on Monday.
The Deepsea Atlantic drilling rig has won a three year contract worth $330 million for drilling production wells, with additional options to extend the work by up to three years worth between $370 million and $470 million, it said.
Odfjell was also awarded a four year contract, with six one-year options to extend, to provide platform drilling services worth $240 million, including the optional periods.
Statoil has been recommended as operator of the field by the other partners including Lundin Petroleum, Petoro, Det norske and Maersk Oil, a unit under Denmark's A.P. Moeller-Maersk.
"The Deepsea Atlantic rig will drill minimum 13 pilot wells on the field prior to production start from Johan Sverdrup in late 2019. This enables us to utilise the production capacity from Johan Sverdrup as efficiently as possible," Statoil's project manager for the field, Oeivind Reinertsen, said in a separate statement from the oil firm.
The three-year deal for the Deepsea Atlantic drilling rig will give Odfjell a day rate of about $300,000, according to a Reuters calculation, in line with recent deals in the market but only half the level seen prior to last year's sharp drop in crude prices.
Sverdrup, Europe's costliest offshore energy project, contains up to 3 billion barrels of oil equivalent (boe) and could operate for 50 years, giving a boost to Norway's declining oil industry.
(Reporting by Stine Jacobsen, editing by Terje Solsvik)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 1 Offshore Rigs
- Statoil Takes First Bite Of Solar Market With Brazilian Joint Venture (Oct 04)
- Statoil Charters Last of Largest Oil Tankers to Hold Crude for Asia Buyers (Sep 28)
- Statoil And Partners Plan Output Capacity Expansion At Troll Gas Field (Sep 26)
Company: Lundin Petroleum AB more info
Operates 2 Offshore Rigs
- Lundin Board Proposes Malaysia, France, Netherlands Asset Spin Off (Feb 13)
- Swedish Oil Firm Lundin Sees Output More Than Doubling Next Decade (Feb 01)
- Lundin's Development Expenditure to Top $1B in 2017 (Jan 19)
Company: Petoro more info
- Aker Solutions Secures Johan Sverdrup Phase 2 FEED Contract (Mar 21)
- NPD Grants Consent for the Expansion of Nyhamna Gas Plant (Feb 10)
- Statoil Granted North Sea Drilling Permit by NPD (Dec 21)
Company: Det norske oljeselskap ASA more info
- Det Norske Completes Merger with BP Norge, Creates Aker BP (Sep 30)
- Lundin Granted Drilling Permit Offshore Norway (Sep 20)
- Det Norske Increases Production Guidance for 2016 (Sep 14)
Company: Maersk Oil & Gas more info
- Maersk Oil CEO To Step Down After Total Takeover (Sep 27)
- Maersk Stands to Get Another $7.5 Billion for Energy Divestments (Aug 21)
- Fars News Agency: Maersk Sees Up To 140,000 Bpd Potential For Iran Field (Aug 01)