Odfjell Drilling Ltd. is pleased to announce that further to the announcement on
31 March 2023, the contracts provided for in the two Letters of Intent for the
Deepsea Atlantic to conduct operations in the North Sea region have now been
signed with Equinor.
As previously announced, the contracts have a combined firm duration of 23
months and a value of approximately USD 290 million excluding integrated
services, upgrades / modifications or mobilisation fees. The contracts also
include provisions for performance bonuses and fuel incentives.
In addition to the firm contract periods, there are four priced one well options
as well as three further optional periods of approximately one-year each, with
the rates for each period to be mutually agreed prior to exercising.
The work will begin immediately following completion of the Special Periodic
Survey for the Deepsea Atlantic, which is currently planned during the first
half of 2024.
The Deepsea Atlantic is now signed up to firm contracts until mid-2026, with
options which extend to 2029.
Together with the two contracts, Odfjell Drilling and Equinor have also entered
into a Strategic Collaboration Agreement to focus on matters of mutual strategic
importance. With a focus on safety, drilling efficiency and lower emissions
this agreement shall provide the framework for a joint effort and longer-term
collaboration on these key matters.
Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
“We are pleased to confirm that the Deepsea Atlantic will continue to work with
Equinor under the new contract which could see the rig in continuous operation
until 2029, delivering strong, predictable cash generation from the unit.
“Having worked with Equinor on many project developments through the years, we
are pleased to have signed a Strategic Collaboration Agreement to further
develop our combined capabilities to deliver safe and efficient operations.
Continuous development of our workflows and technologies is a key focus for
Odfjell Drilling and we look forward to seeing the results of this initiative.”
Ends
For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7393 766 446
jchu@odfjelldrilling.com
London, United Kingdom
17 July 2023
Odfjell Drilling Ltd