ODL - Odfjell Drilling signs drilling contract for Deepsea Atlantic and the Master Frame Agreement with Equinor
Reference is made to previous announcement of a Letter of Intent on 16 April 2018. Odfjell Drilling has today signed the drilling contract for Deepsea Atlantic for 6 firm wells with an estimated total duration of 18 months, scheduled to commence in early first quarter 2019. The contract contains the option to continue operations for Equinor after the firm period, and such options shall be based on market pricing. The contract value is estimated to USD 160 million (including some third party services, e.g. casing running services by Odfjell Well Services) plus potential income from the contract incentive model.
In addition, and as part of a long term co-operation with Equinor, Odfjell Drilling also signed a Master Frame Agreement for all the drilling units in the fleet, which will be the foundation for any future rig requirements which may be agreed between the parties.
Simen Lieungh, CEO Odfjell Drilling:
"A long term co-operation with Equinor is a key cornerstone in Odfjell Drilling's long term strategy for growth on the NCS. The Master Frame Agreement formalizes this co-operation and allows the parties to work closer in developing new technologies and new ways of working to achieve even more efficient operations. The drilling contract for Deepsea Atlantic is hopefully the first of many opportunities to be realized under the Master Frame Agreement. Odfjell Drilling looks forward to being a key contributor to Equinor's ambitious targets for drilling on NCS."
For further queries, please contact:
Eirik Knudsen, VP Corporate Finance & Investor Relations
+47 934 59 173
25 May 2018
Odfjell Drilling Ltd.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act