Odfjell Drilling has announced it has signed two letters of intent (LOI) for its Deepsea Atlantic to be used in the North Sea for a sum of $290 million.
These documents combined are set to last for 23 months and have a value of around £234m excluding integrated services, upgrades/modifications or mobilisation fees.
Singed with a single client, the two LOIs include provisions for performance bonuses and fuel incentives.
Following the end of this deal, d there are four priced one-well options.
The arrangement also includes three further optional periods of around one-year each, in which the rates for each period are to be mutually agreed upon prior to exercising.
Delivered in 2009, the Deepsea Atlantic is a deepwater and harsh environment semi-submersible rig and is currently under contract with Norwegian energy giant Equinor.
Kjetil Gjersdal, chief executive of Odfjell Drilling commented: “In the year of our 50th anniversary, these LOIs are a testament to Odfjell Drilling’s experience and continued drive to innovate and remain at the forefront of change in our industry.
“While providing valuable, continuous and lengthy backlog these contracts are also a platform for us to take the next step in terms of automation, digitalisation and carbon reduction together with our valued client.
“Over the last decade, the Deepsea Atlantic has proven itself to be one of the most efficient ‘well factories’ in the harsh environment segment. We intend to build on this impressive track record and set a new efficiency benchmark for the industry to chase.”
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