Odfjell Rig Gets More Work From Equinor
Norwegian oil and gas giant Equinor has exercised its option to drill more wells using an Odfjell Drilling-owned rig, extending its stay offshore Norway.
Equinor said that it exercised further work for the Deepsea Stavanger under the continued optionality mechanism provided for in the contract entered by the parties in May 2021.
Following this addition, the Deepsea Stavanger now has six remaining wells to be drilled which are expected to occupy the rig into the first quarter of 2023. Equinor also could exercise further wells under the continued optionality mechanism.
According to Odfjell Drilling, the dayrate is similar to the current contract and a notable performance incentive rate, in addition, shall apply when wells are delivered safely and ahead of target. Integrated services are provided through the contract and compensated separately.
Originally, Equinor entered into a Master Frame Agreement with Odfjell Drilling in May 2018. Under this deal, the Deepsea Stavanger became the third rig from the driller’s fleet to join Equinor. The first two are the Deepsea Atlantic and Deepsea Aberdeen, contracted under the initial deal inked in 2018.
The Deepsea Stavanger was contracted to Equinor in May 2021 for a firm period of three wells plus six optional wells with a value of about $33 million. In September 2021, Equinor added another well to the contract for this rig with an expected duration of four months. This was expected to keep the rig busy into the third quarter of 2022. Equinor added more wells to the Deepsea Stavanger’s backlog a few months later.
As for the rig, the Deepsea Stavanger rig is a sixth-generation deepwater and harsh environment semi-submersible with an enhanced GVA 7500 design.
It is worth noting that Equinor received consent from the Norwegian offshore safety body for the drilling of the Poseidon prospect in the North Sea with this rig sometime last month.
Operations on the well will take 76 days if it turns out to be a dry hole case. The drilling will be extended for 18 additional days in the case of a discovery.
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