Northern Ocean (NOL) has signed a strategic alliance agreement in Ghana and a contract with the Springfield Group of Companies for the use of the Deepsea Bollsta on a well test of the Afina 1x well, amongst other activities. The strategic alliance includes a mutual exclusivity to explore a long-term field development program in Ghana. The firm contract duration is for one well test estimated to be 30-35 days and will commence early in the fourth quarter this year.
The Ghana program will precede the contract with a subsidiary of a major operator which was announced on 26 July 2024. The agreed clean dayrate is $440,000, excluding mobilisation and demobilisation. With this new contract award for Deepsea Bollsta, the Company has an estimated aggregate revenue backlog between $85 million and $105 million, excluding bonuses, reimbursables and undeclared options.
Arne Jacobsen, Chief Executive Officer of NOL, commented: 'We are excited to announce this strategic alliance agreement with Springfield, which is an important step in the company’s plan to build a solid order backlog. In addition, this alliance creates the foundation for NOL and Springfield to build a long-term relationship in Ghana where Springfield is an important operator.
The short-term work in advance of the already announced drilling contract proves that it is possible to backfill idle periods in direct discussions with oil companies. Although it is short-term work it brings the Deepsea Bollsta back in operation earlier than anticipated, and NOL adds an important oil company in West Africa to its list of clients. This demonstrate that NOL’s superior assets combined with Odfjell Drilling`s operation is a very attractive solution for our clients.'
Kevin Okyere, Chief Executive Officer of Springfield, commented: 'The appraisal of Afina 1x through a well test helps finalize the unitisation between Springfield- ENI/ Vitol and will bring significant value to the government of Ghana and all stakeholders involved in this unitisation
Together with GNPC and GNPC Explorco, our partners, we are really excited to be working with NOL in this historic drilling campaign as the first independent African company to operate in deep waters. The success of this campaign will result in us being the first independent African producer in deep waters as well. NOL’s impressive track record, efficiency and expertise make them an ideal partner for Springfield as together we have managed to plan and we will execute this drilling campaign in a safe efficient manner. Together in our partnership, we look forward to building a mutually beneficial long-term relationship that brings significant value to all our stakeholders.'
Both parties are committed to spending the time during this exclusivity period until 01.01.2025 to enter into a firm agreement for long term field development drilling starting mid- 2025.
Source: Northern Ocean
