Aker BP Extends Deepsea Nordkapp Firm Contract to end 2026

Published 16.01.2024

Odfjell Drilling Ltd. is pleased to announce the signing of an amendment with
Aker BP which extends the firm contract for the Deepsea Nordkapp.

The extended term shall commence on 1st January 2025 in direct continuation of
the current firm contract period and run for a fixed duration of two years.

The two additional years are compensated on a market-based rate mechanism. As
previously agreed with Aker BP in 2022, the contract value for 2025 has a floor
and ceiling day rate, resulting in a contract value of USD 124 million to USD
146 million, where the ceiling of the day rate range shall be adjusted annually
based on an inflation formula. The contract value for 2026 is approximately USD
179 million which shall also be adjusted annually based on an inflation formula.

In addition to the market based day rates, Aker BP shall pay performance and
fuel savings incentive bonuses. The contract extension is subject to license
partner approval.

In addition to the extended firm duration, the contract now includes rolling
one-year un-priced optional periods, the price of which shall be based on market
rates set in advance of each respective optional year.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:

“We are pleased to be extending our contract with Aker BP, with whom the Deepsea
Nordkapp has been working with since its delivery in 2019. Together with our
Alliance model and its focus on collaboration and innovation, we foresee Odfjell
Drilling and Aker BP continuing to set new performance benchmarks and provide
safe and efficient operations with the Deepsea Nordkapp for many years to come.

“With this extension, our owned fleet is further secured with firm backlog from
2024 and beyond at increasing day rates. In addition, the rolling optionality
mechanism will continue to give opportunity to further extend this backlog at
market rates.”


For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7393 766 446
London, United Kingdom
15 December 2023
Odfjell Drilling Ltd

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

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