Shell has contracted Northern Ocean’s Deepsea Bollsta to carry out drilling offshore Namibia under a 12-month contract.
Northern Ocean owns the rig, while Odjfell Drilling provides operational and marketing services.
The owner said the contract would begin in the middle of the fourth quarter of this year. In addition to the 12-month contract, there is a six-month option.
Northern Ocean said the contract provided an additional $124 million of revenue backlog, excluding the option.
Odjfell has begun reactivation work and prepare to mobilise the rig. Northern Ocean previously called the rig the West Bollsta. It completed work for Lundin Norway at the start of March.
Northern Ocean warm stacked the rig at Hanøytangen outside Bergen, Norway, alongside its other rig, the Deepsea Mira.
The owner said that in order to reactivate the rig it has retained a number of agents, including Fearnley Securities and Danske Bank, to advise on a private placement. Northern Ocean intends to raise $40 million gross.
Norwegian magnate John Fredriksen’s Hemen Holding, which owns 39% in Northern Ocean, has said it will subscribe for shares to maintain its stake.
Northern Ocean successfully completed the raise on August 26.
The company has said the offshore drilling market is continuing to strengthen. Opportunities for 2023 and beyond are increasing, it said. While the company’s two rigs are suited for harsh environments, Northern Ocean is also working on opportunities in more benign areas – such as Namibia.
The Deepsea Bollsta contract reflects “the company’s ability to secure long-term work with high calibre clients and reactivate its assets under new management with Odfjell”.