Norwegian based Odfjell Drilling have secured a contract, for their offshore semisubmersible, the Deepsea Stavanger drilling rig.
The contract secures the Deepsea Stavanger to drill six oil and gas production wells for the Wintershall operated Maria field, in the Haltenbanken area, offshore Norway. The contract will run for a duration of 574 days, starting April 2017.
Two further options have bee included, one prior to the main contract starting, for the drilling of one well, and an option directly after the main contract, for the drilling of a further two wells.
The total value of the contract is estimated to be US$273 million, US$175 million for the main offshore drilling contract and US$98 million for the two options.
Odfjell Drilling CEO, Simen Lieungh, said, “We appreciate the trust Wintershall and its partners show us in developing the Maria field.”
“This contract represents yet another recognition of Odfjell Drilling’s ability to provide efficient drilling operations in harsh environment areas and I can assure that Odfjell Drilling will demonstrate the company’s firm commitment to the successful development drilling of the Maria field.”
“This contract is an important addition to Odfjell Drilling’s order backlog and increases the company’s earnings visibility during a challenging market cycle,”
The contract will come as good news for a company in an industry that is currently suffering heavily with the crash of the global oil price.
Odfjell itself has recently had to put both its state-of-the-art ultra deep water offshore drill ships up for sale due to low demand, slashed day rates and mounting overheads. Both drill ships are around four years old.
The Offshore Maria Field
The offshore Maria field sits in the Norwegian sector of the North Sea, around 27 miles (45km) south of the Heidrun Field and 12 miles (20km) east of the Kristin Field.
Reserves have been estimated at 180 million barrels of oil equivalent, which is predominantly crude oil.
The Maria field will operate via two subsea templates, that tie-back to the Statoil operated Kristin platfrom.
Offshore drilling is now expected to start with the Odfjell Drilling semisubmersible Deepsea Stavanger, whilst production startup and first oil are expected towards the end of 2018, with a production field life of 23 years.