Odfjell Drilling has announced that Equinor has exercised options for seven wells to extend the use of the Deepsea Aberdeen on the Breidablikk field.
The exercised options are planned to start in mid Q1 2025 in direct continuation of the current firm period and extend the firm backlog on the Deepsea Aberdeen to end of Q4 2025. The options have a value of approximately USD 138 million, excluding integrated services, performance and fuel incentives.
In addition to the exercised wells, the contract now includes further optional periods which, if exercised, could keep the Deepsea Aberdeen contracted to 2029. Such optional periods consist of six optional wells followed by three further optional periods of eight wells each, or approximately three times one-year. The
rates for all such optional periods are to be mutually agreed prior to exercising.
Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling, commented:
'We are pleased to confirm this extension which will see the Deepsea Aberdeen continue its work with Equinor on the Breidablikk field. We look forward to building on the successful collaboration with Equinor which has seen the Deepsea Aberdeen drill the initial Breidablikk wells ahead of schedule, paving the way for early production on the field. The One Team approach with its focus on safe, low-carbon, cost-effective wells has proven yet again to deliver impressive results.
'With the exercised optional wells Odfjell Drilling will see substantial cash flow earlier than forecasted as the rig moves to a higher day rate level. The extension mechanisms now agreed could see the Deepsea Aberdeen remain in continuous operation with Equinor until 2029, delivering strong, predictable cash generation from the unit.'
Source: Odfjell Drilling
