Norwegian energy services player Odfjell Drilling has secured a deal with operator Aker BP to extend a contract for the 2019-built semisub rig Deepsea Nordkapp.
The extended term is expected to start in January 2025 in direct continuation of the current fixture and run for two years.
Odfjell Drilling said the two additional years are compensated on a market-based rate mechanism. The contract value for 2025 has a floor and ceiling day rate, resulting in a contract value between $124m and $146m. The contract for 2026 is worth around $179m which will same as for the 2025 fixture be adjusted annually based on an inflation formula.
Aker BP will also pay performance and fuel savings incentive bonuses and has a rolling one-year un-priced option on the unit which has been under contract since 2019.
“With this extension, our owned fleet is further secured with firm backlog from 2024 and beyond at increasing day rates. In addition, the rolling optionality mechanism will continue to give opportunity to further extend this backlog at market rates,” said Kjetil Gjersdal, CEO of Odfjell Drilling.
