Offshore driller Odfjell Drilling has been awarded a conditional letter of intent (LOI) by Statoil for a drilling contract for Deepsea Atlantic rig for six firm wells with an estimated total duration of 18 months.
The contract is scheduled to start in early first quarter 2019, the driller informed on Monday.
The contract contains the option to continue operations for Statoil after the firm period, and such options will be based on market pricing.
The contract value is estimated to $160 million, including some third party services, e.g. casing running services by Odfjell Well Services, plus potential income from the contract incentive model. The conditional letter of intent is subject to license approval.
Simen Lieungh, CEO Odfjell Drilling, said: “We have enjoyed great operational success in our partnership with Statoil on Johan Sverdrup and we are setting our sights even higher to improve on previous performance going forward by implementing new digital solutions to increase efficiency in operations.”
To remind, the Deepsea Atlantic rig in March 2016 started working on the first of a total of 35 wells to be drilled in the first phase of the Statoil-operated Johan Sverdrup field development in the North Sea.
The Deepsea Atlantic is a semi-submersible drilling rig of the MODU GVA 7500 type, operated by Odfjell Drilling. The rig was completed in 2009, registered in Norway, and is classified by DNV GL.