Norwegian offshore drilling contractor Odfjell Drilling Ltd. has finalized contracts with Equinor for its Deepsea Atlantic semi-submersible drilling rig. These contracts follow the signing of two Letters of Intent in March, with Equinor being the undisclosed client at the time. The combined firm duration of the contracts is 23 months, valued at approximately $290 million excluding additional services, upgrades, modifications, or mobilization fees. Performance bonuses and fuel incentives are also included in the contracts.

The agreements include four priced one-well options and three optional periods of about one year each. Rates for these optional periods will be mutually agreed upon prior to their exercise. The work is scheduled to commence immediately after the completion of the Special Periodic Survey for the Deepsea Atlantic, currently planned for the first half of 2024. Equinor stated that the Deepsea Atlantic is now contracted until mid-2026, with options to extend until 2029.

Alongside these contracts, Odfjell Drilling and Equinor have entered into a Strategic Collaboration Agreement to address mutual strategic priorities, focusing on safety, drilling efficiency, and lower emissions. This agreement serves as a framework for joint efforts and long-term collaboration on these crucial matters.

Kjetil Gjersdal, CEO of Odfjell Drilling, expressed satisfaction with the continuation of the Deepsea Atlantic's operations under the new contract, which could extend its continuous operation until 2029, generating consistent cash flow. Gjersdal highlighted the positive history of collaboration between Odfjell Drilling and Equinor on various project developments, emphasizing the importance of continuous development in workflows and technologies.

The Deepsea Atlantic, a sixth-generation deepwater and harsh environment semi-submersible rig of enhanced GVA 7500 design, has been working for Equinor under a letter of intent since July 2022. The rig's activities include drilling 12 wells as part of Phase 2 of the Johan Sverdrup field development in Norway. Equinor extended the rig's assignment offshore Norway until the first quarter of 2024 with five additional wells on the Johan Sverdrup Phase 2 development.