Island Drilling sheds more light on $330 million Equinor contract win

Norwegian offshore rig operator Island Drilling has expounded on the permanent plug and abandonment (PP&A) assignment on the Norwegian continental shelf (NCS) it recently won with compatriot state-owned giant Equinor.

The rig operator elaborated that the contract for its Island Innovator semi-submersible rig, announced last week, will start in Q1 2026. As previously disclosed, the contract duration is three years firm, plus five one-year options. The contract value for the firm period is approximately $330 million, with the planned work encompassing mobilization, integrated services, and modifications.

Roger Simmenes, Island Drilling’s Chief Executive Officer (CEO), noted: “The Island Innovator is a multi-purpose rig tailor-made for Plug & Abandonment, Drilling and Well Intervention. The rig has successfully operated in the North Sea & Barents Sea, Mediterranean Sea and offshore Africa. We are happy to be chosen by Equinor as the preferred contractor for their upcoming plug and abandonment campaign on the Norwegian Continental Shelf.”

Island Drilling believes the contract will have positive implications for the region. This includes an estimated 80 to 100 new positions for workers with marine, drilling, and technical backgrounds offshore, as well as an additional 10–15 onshore in Bergen and Stavanger.

The operator also expects a “substantial” procurement of goods and services from Norwegian suppliers to result from the Island Innovator joining the club of drilling rigs operating on the Norwegian Continental Shelf.

The 2012-built Island Innovator is a sixth-generation, GM4000 WI enhanced design, semi-submersible drilling, well intervention, and completion unit. It is currently equipped to operate in water depths from 60 to 1,200 meters.

Based on the data from Island Drilling’s website, the rig’s 2025 schedule is partially booked, while the 2026–2028 period is fully booked, and the 2029–2033 period remains free.

The Island Innovator completed a P&A assignment offshore Mauritania in October 2024, a little over a month after the gig started. After that, it made a stop at a shipyard in Las Palmas, where it was supposed to undergo repair work.