Odfjell Drilling, based in Aberdeen, has received a Christmas boost with a two-year contract extension from Aker BP for its Deepsea Nordkapp rig. The extension, valued at up to £250 million ($325 million), will commence in January 2025 and run until the end of 2026. The semi-submersible rig has been under contract with Aker BP since its delivery in 2019.

The contract value for 2025 is estimated to range between $124 million and $146 million, determined by a floor and ceiling day rate. For 2026, the contract value is approximately $179 million. Aker BP will also provide performance and fuel savings incentive bonuses in addition to market-based day rates.

Kjetil Gjersdal, CEO of Odfjell Drilling, expressed pleasure at extending the contract with Aker BP and highlighted the collaborative and innovative focus of their Alliance model. He anticipates setting new performance benchmarks and ensuring safe and efficient operations with the Deepsea Nordkapp for several years. Gjersdal also emphasized that the extension secures the company's owned fleet with a firm backlog beyond 2024 at increasing day rates.

The contract extension follows Aker BP's alliance agreement with offshore drillers Noble Corporation, Odfjell Drilling, and Halliburton, signed in January. This agreement aligns with Aker BP's plans for significant project expansion and drilling activities in Norwegian waters. The alliance secured commitments for the Noble Integrator and Noble Invincible jack-ups, while Odfjell's Deepsea Stavanger is set to join the Aker BP rig fleet in 2025 under a five-year contract.