Odfjell Drilling has signed two Letters of Intent ('LOI’s') with a single client for the Deepsea Atlantic to conduct operations in the north sea region. The LOI’s have a combined firm duration of 23 months and a value of approx. USD 290 million excluding integrated services, upgrades/modifications or mobilisation fees. In addition to the base value, the LOI’s include provisions for performance bonuses and fuel incentives.
Following the firm period, there are four priced one well options. The arrangement also provides for three further optional periods of approx. one-year each with the rates for each period to be mutually agreed prior to exercising.
The LOI’s are contingent on license approval with one of the LOI’s also contingent on governmental approval and formalisation of contract. The work will begin consecutively following completion of the Special Periodic Survey, currently planned during first half of 2024.
Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
'In the year of our 50th anniversary these LOI’s are testament to Odfjell Drilling’s experience and continued drive to innovate and remain at the forefront of change in our industry. While providing valuable, continuous and lengthy backlog these contracts are also a platform for us to take the next step in terms of automation, digitalisation and carbon reduction together with our valued client.
'Over the last decade the Deepsea Atlantic has proven itself to be one of the most efficient ‘well factories’ in the harsh environment segment. We intend to build on this impressive track record and set a new efficiency benchmark for the industry to chase.'
Source: Odfjell Drilling
