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 Ltd ("Odfjell Drilling" or the "Company") is contemplating to offer new common shares (the "Offer Shares") in a private placement raising gross proceeds of up to approximately NOK 1.56 billion, equivalent to up to approximately USD 200 million (the "Private Placement"). The subscription price per Offer Share in the Private Placement (the "Subscription Price") will be determined through an accelerated bookbuilding process.
Odfjell Drilling is pleased to announce that Statoil has awarded a conditional Letter of Intent (LOI) for a 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.
Statoil has awarded Odfjell Drilling a contract for Drilling Services Fixed Platforms on Heidrun located on the Norwegian Continental Shelf. Odfjell Drilling currently operates both Grane and Heidrun until October this year, and will thereafter continue operations on Heidrun.
Reference is made to the stock exchange notice from 31 May 2017 whereby Statoil awarded Deepsea Bergen a new drilling contract. The contract originally included one firm well plus 4 x 3 optional wells.