The contract contains the option to continue operations for Statoil after the firm period, and such options shall be based on market pricing.
Simen Lieungh, CEO Odfjell Drilling:
“The contract is another important milestone for Odfjell Drilling in maintaining a close relationship with one of our key clients on NCS. We have enjoyed great operational success in our partnership with Statoil on Johan Sverdrup and we are setting our sights even higher to improve on previous performance going forward by implementing new digital solutions to increase efficiency in operations”
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.
The conditional Letter of Intent is subject to license approval.
For further queries, please contact:
Eirik Knudsen, VP Corporate Finance & Investor Relations
+47 934 59 173
16 April 2018
Odfjell Drilling Ltd.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
Odfjell Drilling has today signed a Letter of Intent for Deepsea Bergen with MOL Norge for one exploration well in direct continuation of the contract with OMV Norge, estimated to expire in Q3/Q4 2019.
Odfjell Drilling has today 11. September 2018 signed a contract with Ithaca Energy (UK) Limited for one firm production well, plus optional wells with commencement in either 2019 or 2020 to be mutually agreed, on the UK Continental Shelf ("UKCS").
Reference is made to the stock exchange notice of 21 April 2017 whereby Odfjell Drilling announced a one-well contract plus two optional wells for its semi-submersible Deepsea Bergen with OMV (Norge) (“OMV”). The first well was finalized in April 2018 with a successful discovery as earlier reported by OMV.
ODL – Odfjell Drilling signs drilling contract for Deepsea Atlantic and the Master Frame Agreement with Equinor