Energy

Equinor exercises eight well drilling option with Deepsea Aberdeen rig

Time Stamp: May 22, 2024 5:03 AM
Source Node: 2946786

Republished by Plato

Norwegian operator Equinor has exercised an option to drill a further eight wells in the North Sea with the Deepsea Aberdeen rig.

Deepsea Aberdeen operator Odfjell Drilling said it expects the exercised well options, covering the Norwegian continental shelf, to begin in the fourth quarter of 2025.

The contract extension will see the harsh environment semi-submersible rig continue in its current campaign with Equinor, which began in 2022.

Odfjell Drilling said the options are worth approximately $121 million (£95m) and will extend the Deepsea Aberdeen’s backlog to Q3 2026.

Equinor could still exercise further optional periods in the contract, which Odfjell said could keep the rig contracted to 2029.

The Deepsea Aberdeen drilling rig in Lerwick Harbour. — Odfjell Drilling’s Deepsea Aberdeen rig in Lerwick Harbour.

The remaining options consist of three periods of eight wells each, or approximately three periods of a year each, Odfjell said, with the rates mutually agreed prior to exercising.

Odfjell Drilling chief executive officer Kjetil Gjersdal said: “We are pleased to see the exercise of further options for the use of the Deepsea Aberdeen, which has been on a continuous contract with Equinor since 2022.

“With this additional backlog now agreed we have further significant, predictable and increasing revenue generation ahead of us and all of our owned fleet now has secured firm backlog until at least mid-2026.”

Equinor drilling campaigns

The Deepsea Aberdeen contract extension follows a strategic pact agreed between Equinor and Odfjell Drilling in July last year.

Another Odfjell Drilling rig, the Deepsea Atlantic, is under contract with Equinor until at least 2026 in a deal worth around $290 million.

Equinor has also extended several other drilling contracts in recent months, including recent deals with three rig operators worth a combined NOK 18.4 billion (£1.34bn).

The Norwegian state-owned firm said the three deals, involving Odfjell Operations, Archer, and Aberdeen’s KCA Deutag, will maintain around 2,000 jobs.