Equinor has signed up the Hercules rig for wells offshore east Canada, under a contract worth $100 million.
SFL Corp. announced the signing of the deal with Equinor for the harsh environment semisubmersible today. Rig manager Odjfell Drilling confirmed the agreement.
The Hercules will come under the Equinor contract in the second quarter of 2024. It covers one firm well and one contingent. The contract will run for 200 days and includes transit to and from Canada.
SFL CEO Ole B Hjertaker said that, as a result of the deal, the company has around $200mn of revenue backlog for Hercules.
It has also “secured undisrupted employment for the rig until the fourth quarter of 2024. This contract together with other recent contract rewards in the industry illustrates that the market for advanced harsh environment semi submersibles is firming and expected to remain strong for a prolonged period.”
Equinor shelved its ambitious Bay du Nord development plans in May. However, the company is continuing to pursue exploration in the area.
The Hercules completed its periodic survey in Norway in July and went to Canada. It is currently drilling, under a contract with ExxonMobil. This Exxon contract has a firm duration of 135 days, with an option for another 60.
Once this work is complete, it will head off to Namibia for a contract with Galp Energia. The Hercules should drill two wells in the hotly tipped Orange Basin under the deal, starting in the fourth quarter of 2023. This contract runs for 115 days, including mobilisation.
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