With a combined firm duration of 23 months, the LOI’s are valued at around $290m and exclude integrated services, upgrades or modifications or mobilisation fees
Odfjell Drilling signs two LoIs for Deepsea Atlantic. (Credit: Galen Crout on Unsplash)
UK-based oil drilling and well services provider Odfjell Drilling has signed two Letters of Intent (LOI’s) for the operations of its semi-submersible unit, Deepsea Atlantic, in the North Sea region.
With a combined firm duration of 23 months, the LOI’s are valued at around $290m and exclude integrated services, upgrades or modifications or mobilisation fees.
The LOI’s also include provisions for performance bonuses and fuel incentives.
In addition, the arrangement offers three additional optional periods of about one-year each, where prices for each period will be mutually agreed upon before exercising.
The two LOI’s are subject to license approval, and one of them is also contingent on governmental approval and formalisation of the contract, said the UK-based oil drilling firm.
Odfjell is expected to commence the works following the completion of the Special Periodic Survey, which is currently planned for the first half of 2024.
Odfjell Drilling chief executive officer Kjetil Gjersdal said: “In the year of our 50th anniversary these LOI’s are a testament to Odfjell Drilling’s experience and continued drive to innovate and remain at the forefront of change in our industry.
“While providing valuable, continuous and lengthy backlog these contracts are also a platform for us to take the next step in terms of automation, digitalisation and carbon reduction together with our valued client.
“Over the last decade, the Deepsea Atlantic has proven itself to be one of the most efficient ‘well factories’ in the harsh environment segment. We intend to build on this impressive track record and set a new efficiency benchmark for the industry to chase.”
Deepsea Atlantic is a sixth-generation deepwater and harsh environment semi-submersible unit.
It is an advanced, dual derrick, dynamic-positioned unit that comes with an enhanced GVA 7500 design similar to its sister rigs Deepsea Stavanger and Deepsea Aberdeen.
With a 7,500MT loading capacity, the unit is designed for operations in harsh environments and at water depths of up to 3,000m.
The rig comes with an advanced, highly effective drilling system that includes a dual derrick with a main and an auxiliary work centre to facilitate several simultaneous operations.
The drilling system includes dual active heave compensating draw works for enhanced performance, efficiency, safety and redundancy, according to the company’s website.