Maersk Drilling Wins North Sea Contract

OMV (Norge) AS (OTCMKTS: OMVKY) has awarded Maersk Drilling (OTCMKTS: DDRLF) a one-well contract for the Maersk Integrator low-emission jack-up rig, Maersk reported Monday in a written statement emailed to Rigzone.

The rig will drill one exploration well in the Ommandawn prospect in Production License 970 offshore Norway, the drilling contractor noted. It pointed out the contract will likely commence in the middle of 2021 and run for an estimated 52 days.

“We’re pleased to add this additional work scope for Maersk Integrator in 2021, and to enter into a new type of collaborative contractual set-up with OMV where we will focus on aligning incentives in the planning and execution of the drilling operation which again is expected to significantly reduce the uncertainty about overall well construction costs for our customer. We believe this kind of commercial model has the potential to increase exploration drilling activity in Norway and across the North Sea,” remarked Morten Kelstrup, Maersk Drilling’s chief operating officer.

According to Maersk, the firm contract value for the ultra-harsh environment CJ70 XLE jack-up is approximately US$14.3 million. It explained the estimate includes mobilization but excludes integrated services provided and potential performance bonuses. The company added the contract includes an option to add approximately 28 days of well testing.

Maersk also stated the rig is undergoing upgrades to combine the use of hybrid power with low levels of nitrogen oxides (NOx) emissions, adding data intelligence to further cut energy consumption and carbon dioxide emissions. The firm pointed out the contract’s performance bonus schemes focus on rewarding reduced fuel consumption and NOx emissions during drilling operations.

“The contract further shows the commercial value of our low-emission upgrades,” continued Kelstrup. “By reducing fuel consumption, CO2 emissions and NOx emissions we are not only making contributions towards reaching emissions targets, but also create value for our customer under the incentive schemes established in Norway.”

The Maersk Integrator is designed to operate year-round in the North Sea in up to 492 feet (150 meters) of water and drill to 40,000 feet (12,192 meters), Maersk Drilling’s website states.

To contact the author, email mveazey@rigzone.com.