Odfjell rig starts Equinor gig

An Odfjell Drilling-owned semi-submersible rig has started its contract with Equinor, making it the third Odfjell rig to work for the Norwegian energy giant.

Odfjell Drilling informed through its social media channels on Tuesday that the Deepsea Stavanger has started its contract with Equinor.

“We look forward to delivering safe, efficient and world-class operations as One Team,” the rig owner added.

Equinor awarded the contract back in May 2021 for a firm period of three wells with an expected duration of four months and an expected start date during 1Q 2022. The contract value is estimated at around $40 million for the fixed part and it also includes a notable performance incentive rate which will apply when wells are delivered safely and ahead of target.

Come September 2021 and Equinor added an additional well to the contract for the Deepsea Stavanger rig. The additional well will follow the firm period of three wells, keeping the rig occupied into the third quarter of 2022. The commercial value for the additional well is approximately $20 million.

The Deepsea Stavanger now joins sister rigs Deepsea Atlantic and Deepsea Aberdeen as being contracted under the Master Frame Agreement, which Odfjell Drilling entered into with Equinor in May 2018.

Based on available information, the rig’s first assignment with Equinor may be a wildcat well in the North Sea on the Statfjord Kile prospect for which Equinor received a drilling permit earlier this week. The well is scheduled to be drilled this month for the duration of 44 days. The safety consent to use the Deepsea Stavanger rig for this well was obtained from Norwegian authorities last December.

In related news, Odfjell Drilling revealed this week it was contemplating spinning off its Well Services and Energy segments into a newly established company, Odfjell Technology, and listing it on the Oslo Stock Exchange in order to proactively respond to the changes and opportunities facing the industry, including further expansion into green ventures.