Norwegian oil and gas company Equinor has exercised three new wells for Odfjell Drilling’s Deepsea Atlantic rig.
Furthermore, two additional wells are pending final approval by Equinor and its licensees, the rig owner said in a statement on Friday.
The wells have been exercised under the Continued Optionality mechanism in the contract entered into in May 2018, as part of the overall Master Frame Agreement.
The work will start after the completion of the current scope estimated to be in 2Q 2020.
The approximate contract value for the firm scope is $45 million, excluding any integrated services. In addition, a performance bonus will be applicable.
“The Continued Optionality mechanism in the contract serves to provide a framework for the parties to continue a long-term working relationship, and we believe that the extension is evidence of the importance of Deepsea Atlantic in Equinor’s drilling plans,” Simen Lieungh, CEO Odfjell Drilling said.
The Deepsea Atlantic is a sixth generation deepwater and harsh environment semi-submersible rig capable of operating at water depths of up to 3,000 meters.
This is the second contract extension for Odfjell Drilling this week. Namely, Aker BP earlier this week exercised the first one year option for the Deepsea Nordkapp semi-submersible drilling rig.
In addition, Odfjell Drilling was this week awarded a contract for platform drilling and maintenance and minor modifications for ConocoPhillips offshore Norway. The contract includes drilling operations, work-over campaigns, plug and abandonment activities, and all preventative and corrective maintenance of ConocoPhillips’ drilling facilities on three offshore platforms in the Greater Ekofisk Area.