Odfjell Drilling Wins Statoil’s Johan Sverdrup Contracts.

Published at 09:32AM - 15/06/15

Odfjell Drilling has won drilling contracts from Statoil for all drilling operations and drilling related activities in the Johan Sverdrup field.  The contracts are worth an initial NOK 4.41 billion (USD 567 million / GB£ 365 million   ), but options can extend this to a possible NOK 7.26 – 8.06 billion (USD 933 million – 1.04 billion / GB£ 601 – 670 million)

The first contract is for the lease of Odfjell Drilling’s Deepsea Atlantic Semisubmersible rig, and covers all initial drilling of the subsea wells in the Johan Sverdrup field over a period of three years.  The contract also includes 6 x 6 month options, to cover an extended drilling campaign.

The initial contract is worth a total of NOK 2.56 Billion (US$ 330 / GB£221), with the value of the options to extend the lease on the Odfjell Deepsea Atlantic coming in between NOK 2.85 – 3.65 billion ( USD 370 – USD 470 million / GB£ 238 – 302 million).  Both Statoil and Odfjell Drilling expect drilling to commence as planned in March 2016.

The second contract won, covers all drilling related services onboard the Johan Sverdrup platform itself. This includes the supply of expertise during all engineering, construction and commissioning phases. It will also include continual drilling service and support post commission.  This puts a full time Odfjell Drilling crew onboard the Johan Sverdrup platform over the length of the contract. 

This contract works on a firm 4 year basis, but includes 6 x 1 year options, and is expected to be worth NOK 1.85 billion (USD 240 million / GB£ 154 million), once all engineering; construction; commissioning assistance and options are accounted for.

 

 

An Overview Of Odfjell Drilling’s Deepsea Atlantic semi-submersible Drilling Rig

 

The two Statoil contacts will greatly increase Odjell’s output, in what is already a well filled order book.  This comes at a time when the majority of drilling companies around the world are suffering,  with large swathes of offshore drilling rigs being either laid-up or mothballed for the forceable future.