Norwegian energy giant Equinor (OSLO: EQNR) has tied down two Odfjell Drilling rigs for further well campaigns.
Extension options have been triggered for the Deepsea Aberdeen and Deepsea Stavanger, meaning the units will be on lease to the Oslo-listed company until 2025 and 2024 respectively.
It comes as drilling work offshore Norway hots up, with the country recently pledging to leave no stone unturned in the hunt for oil and gas.
Deepsea Aberdeen
A deal between Equinor and Odfjell for the Deepsea Aberdeen was struck in 2020 for the unit to operate in the 200-million-barrel Breidablikk field.
An additional work scope for the rig, as detailed in the initial contract, has now been added.
The Deepsea Aberdeen will spud 15 wells on the Svalin field, starting in the fourth quarter of this year with an estimated duration of 174 days.
It means the rigs backlog now runs to Q2 2025, while Equinor has the chance to add more wells to the campaign, with a further option agreement open.
The additional work comes at a cost of $67 million, excluding integrated services, performance and fuel performance incentives.
Deepsea Stavanger
Equinor has also exercised further wells for the Deepsea Stavanger, again as part of a “continued optionality mechanism” included in the contract, signed in May 2021.
The rig will now be on lease to Equinor until the start of next year, with the potential for the operator to extend that future.
A “notable performance incentive rate” has also been included for wells that are delivered “safely and ahead of target”.
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