Aker BP Secures Odfjell Drilling Rig Contract Through 2026

Home Fossil Energy Aker BP keeping Odfjell Drilling rig busy until end of 2026

December 15, 2023,
by

Melisa Cavcic

Breaking News: Odfjell Drilling has extended its drilling rig deal with Aker BP until 2026! The semi-submersible drilling rig will continue its work on the Norwegian Continental Shelf (NCS).

Deepsea Nordkapp rig; Source: Odfjell Drilling

Due to an amendment inked with Aker BP, the Deepsea Nordkapp extended its contract with Aker BP until 2026. It was one of the three offshore drilling contractors that signed drilling and wells alliance agreements with Aker BP in January 2023 to carry out drilling activities on the Norwegian Continental Shelf.

The extension includes a fixed duration of two years, and a market-based rate mechanism. The contract value for 2025 has a floor and ceiling day rate, resulting in a contract value of $124 million to $146 million, where the ceiling of the day rate range will be adjusted annually based on an inflation formula.

Meanwhile, the contract value for 2026 is approximately $179 million which will also be adjusted annually based on an inflation formula. Aker BP will also pay performance and fuel savings incentive bonuses. The extended contract also has the rig contract now entails rolling one-year un-priced optional periods, the price of which will be based on market rates set in advance of each respective optional year.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling, commented: “We are pleased to be extending our contract with Aker BP, with whom the Deepsea Nordkapp has been working with since its delivery in 2019. Together with our Alliance model and its focus on collaboration and innovation, we foresee Odfjell Drilling and Aker BP continuing to set new performance benchmarks and provide safe and efficient operations with the Deepsea Nordkapp for many years to come.

“With this extension, our owned fleet is further secured with firm backlog from 2024 and beyond at increasing day rates. In addition, the rolling optionality mechanism will continue to give opportunity to further extend this backlog at market rates.”

The 2019-built Deepsea Nordkapp, former Stena Midmax, semi-submersible drilling rig, which Odfjell Drilling bought from Samsung Heavy in April 2018, is a sixth-generation dynamically positioned harsh environment and winterized semi-submersible of a Moss-enhanced CS 60E design.

This extension with Aker BP comes a month after Odfjell Drilling secured another one with Equinor to drill additional wells on the Norwegian Continental Shelf.

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