Odfjell Drilling Secures Contract Extension with Equinor

Norwegian drilling contractor Odfjell Drilling has recently announced a significant contract extension with energy major Equinor for one of its rigs, the Deepsea Atlantic.

The extension entails the employment of the 2009-built semi-submersible rig until the end of the second quarter of 2027. The current 23-month contract, valued at approximately $290 million, will continue under previously agreed terms until the mid-third quarter of 2026.

Following the initial contract period, Equinor has opted to continue utilizing the Deepsea Atlantic until mid-2027, with an incremental value of $148 million. This excludes escalation fees, integrated services, performance bonuses, and fuel incentives.

Moreover, the agreement includes provisions for additional optional periods, including four priced one-well options and three one-year extensions. Rates for these optional periods will be negotiated before exercising, potentially extending the rig’s contract with Equinor until 2030.

Kjetil Gjersdal, CEO of Odfjell Drilling, expressed his satisfaction with the extended contract, stating, “With this additional backlog, the Odfjell Drilling owned fleet is now fully booked until 2027 with a significant, predictable, and increasing revenue backlog.”