With reference to the stock exchange notice dated 18 November 2024, Northern Ocean Ltd. ('NOL') has announced a contract award for Deepsea Bollsta from a renowned client, for work in Norway. The contract is expected to commence in the second quarter of 2025, immediately after the rig has mobilised for operations on NCS. The contract has an estimated firm duration of 54 to 99 days, to be completed in advance of the Equinor contract announced on 18 November this year. The contract adds approximately USD 23 to 42 million of firm backlog and will increase NOL’s firm backlog to approximately USD 488 to 507 million.
This contract further solidifies NOL’s cash flow projections for 2025 and the company does not plan for any further equity raises in connection with the mobilisation of Deepsea Bollsta to Norway. NOL is continuously monitoring the debt market and plans to refinance its current debt falling due in June 2026 when it sees a good balance between terms and conditions versus order backlog.
NOL will work together with its operational manager, Odfjell Drilling AS, to prepare for operations in Norway in a safe, secure and efficient manner.
Arne Jacobsen, Chief Executive Officer of NOL, commented: 'This is the third contract in as many months and adds to the drilling program in Norway, with a well reputed client. In addition to increasing the backlog this contract contributes to removing potential idle time for the rig in advance of the Equinor contract. With Deepsea Bollsta being fixed on contracts until the end of 2027, excluding options, NOL will focus all marketing efforts to increasing the order backlog for Deepsea Mira in the months ahead.'
Source: Northern Ocean
