Odfjell Drilling clinches $290m semisub deal

Oslo-listed semisub player Odfjell Drilling has inked two letters of intent with an undisclosed North Sea operator for the 2012-built rig Deepsea Atlantic.

Both deals, if firmed up, would have a combined firm duration of 23 months and a value of about $290m, excluding integrated services, rig upgrades or mobilisation fees. In addition to the base value, the LOIs include provisions for performance bonuses and fuel incentives, the company said.

The arrangement also includes four priced one-well options. It provides for three further optional periods of about one year each, with the rates for each period to be mutually agreed upon before exercising. 

The awards are contingent on license approval, with one of the deals also contingent on governmental approval and the formalisation of the contract. The work is expected to start after the completion of the special periodic survey planned for the first half of 2024.