Odfjell Drilling Scores Extra $20 Million From Equinor Extension

Odfjell Drilling Scores Extra $20 Million From Equinor Extension
Equinor added a well to a contract for one of Odfjell Drilling’s rigs. This will keep the rig with Equinor into the latter part of 2022.

Energy company Equinor has added an additional well to a contract for one of Odfjell Drilling’s rigs, which will keep the rig with the Norwegian company into the third quarter of 2022.

Equinor 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 that this additional well will follow the current firm period of three wells which will start during the first quarter of 2022 and have an expected duration of four months. 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. Odfjell added that 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 is currently a part of Equinor’s fleet along with two other Odfjell Drilling rigs which joined the energy major’s fleet back in May 2021.

The Deepsea Stavanger will be joining sister units Deepsea Atlantic and Deepsea Aberdeen as the three rigs being contracted under the Master Frame Agreement, which Odfjell Drilling signed up for in 2018.

To contact the author, email bojan.lepic@rigzone.com


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