Odfjell Drilling is set to win a contract worth around $150 million to deploy its Deepsea Atlantic rig for Equinor and its partners for the drilling of a dozen wells for the Johan Sverdrup project phase 2 in the Norwegian North sea.

The Deepsea Atlantic rig was previously used during the phase 1 development of the Johan Sverdrup oil field, which began production last year.

Erik G. Kirkemo – Equinor senior vice president for drilling and well operations said: “Deepsea Atlantic drilled the Johan Sverdrup phase 1 wells with excellent results, so we are pleased to secure the rig for phase 2 as well.

“The rig is already on a continuing contract with Equinor, and our ambition is to keep it busy until Johan Sverdrup phase 2 comes on stream at the end of 2022. Odfjell has a high safety standard and the rig is one of the most efficient rigs we have.”

Equinor, which alongside its partners signed a letter of intent with Odfjell Drilling, said that the costs of integrated services, maintenance, and options for drilling five more wells are not covered in the estimated value. The contract is set to begin in the first quarter of 2022.

The Norwegian oil and gas giant said that the total contract value will be based on the efficiency of the well deliveries.

Simen Lieungh – CEO of Odfjell Drilling said: “This contract award has come at an important time for Odfjell Drilling with the current challenges faced by the industry.  We acknowledge Equinor for proceeding with long term developments such as Johan Sverdrup in this climate and we shall deliver on the trust they and the partners have placed in Odfjell Drilling.

“We saw that our performance on Phase 1 of the Johan Sverdrup development in 2016 set a new benchmark for harsh environment drilling.  Together with Equinor and its partners we intend to take the next step and set a new benchmark on the Johan Sverdrup Phase 2 wells.”

Equinor, which is the operator of the Johan Sverdrup licence, is partnered by Lundin, Petoro, Total, and Aker BP.

  Aker BP, Deepsea Atlantic rig, Equinor, Erik G. Kirkemo, Johan Sverdrup project, Lundin, North Sea, Odfjell Drilling, Petoro, Simen Lieungh, Total