| Work Detail |
Offshore drilling contractor Northern Ocean (NOL) has won a short-term job with an undisclosed operator and a long-term assignment with Norway’s energy giant Equinor on the Norwegian Continental Shelf (NCS) for a semi-submersible rig, which is currently in Africa. The rig has more work off the coast of Namibia, but these deals will enable its return to Norwegian waters after it finishes its scope of work in the African country. Equinor awarded a two-year firm contract for operations offshore Norway to Northern Ocean to employ the Deepsea Bollsta rig, one of the latter’s two sixth-generation semi-submersibles managed by Odfjell Drilling and expected to be equipped with Kinetic Pressure Control’s kinetic blowout stopper (K-BOS). Recently, the rig started its appraisal job in Africa after securing a new short-term gig off the coast of Ghana, following its arrival at Springfield E&P‘s Afina discovery at the WCTP-2 offshore block in Ghana to begin appraisal activities at the Afina-1x well. The Deepsea Bollsta rig is set to undertake a five-year class survey after the Ghana job, followed by another assignment offshore Namibia. Northern Ocean’s contract with Equinor is expected to start in the second half of 2025 and has an estimated firm duration of two years, plus five one-year optional periods, where the first year is priced and the following years are unpriced. The contract adds approximately $335 million of backlog, with the addition of around $80 million for client-specific upgrades, integrated services, and mobilization from Namibia to Norway. This will increase the company’s firm backlog to approximately $465 million. The rig owner intends to work with its operational manager, Odfjell Drilling, to move the rig from Namibia for operations in Norway in direct continuation of completed work in Africa. Northern Ocean has also signed a letter of intent with an unnamed operator for one-well work in Norway to be completed before the rig embarks on its assignment with Equinor. Arne Jacobsen, Chief Executive Officer of NOL, commented: “This marks a turning point for the company to secure a longer-term contract in Norway with a client like Equinor, which adds more than USD 415 million to the revenue backlog. This provides a solid foundation for NOL to further develop the company and continue to build backlog, enabling the next steps of the company strategy. This is yet another proof that the NOL business model, combining NOL`s superior assets with Odfjell Drilling’s operations, is a very attractive solution for our high-quality clients.” Three rigs, owned by Odfjell Drilling, currently work for Equinor on the NCS, including the Deepsea Aberdeen, Deepsea Atlantic, and Deepsea Stavanger semi-submersibles. The 2020-built Deepsea Bollsta sixth-generation semi-submersible rig is of Moss CS60E design and can accommodate 140 people. The rig can carry out operations in both benign and harsh environments at water depths of up to 3,000 meters. |
