Aker BP to use another one-year option for Odfjell rig

Oil and gas company Aker BP has exercised the second 12-month option for the Odfjell Drilling-owned Deepsea Nordkapp rig under a contract entered into between the parties in April 2018.

Odfjell Drilling bought the Deepsea Nordkapp drilling rig, former Stena Midmax, from Samsung Heavy and won a contract for it from Aker BP back in April 2018.

Odfjell Drilling was awarded a two-year firm drilling contract for the rig with 1+1 year optional periods.

In December 2019, Aker BP exercised the first one-year option for the Deepsea Nordkapp. It was agreed for the first one-year option to begin after the expiry of the two-year firm period in May 2021.

Odfjell Drilling announced the second option for the Deepsea Nordkapp rig on Monday 22 March 2021. The second 12-month option will start after the expiry of the first optional period in June 2022, the rig owner said.

The approximate contract value for the exercised optional scope is $109 million, excluding any integrated services. In addition, a performance bonus will be applicable.

An additional scope based option period has been agreed which, if exercised, will follow completion of the firm period and have a duration of up to 12 months.

Simen Lieungh, CEO Odfjell Drilling, said: “We are very pleased to see Aker BP’s continued commitment to the Alliance Agreement between the parties. The Alliance has delivered exceptional performance on Deepsea Nordkapp and we see this extension a recognition of those good results. With the addition of a further option period we look forward to continuing the Alliance into the future”.

Odfjell Drilling has also recently won more work for the Deepsea Atlantic rig from Equinor in Norway.

The well has been exercised under the Continued Optionality mechanism in the contract entered into between the parties in May 2018, as part of the overall Master Frame Agreement.

The work will start after the completion of the current scope estimated to be in the second of the third quarter of 2021.