Company Disclosures

Odfjell Drilling enters letter of intent for second phase of Johan Sverdrup with Deepsea Atlantic

Published 07.07.2020

Equinor has today awarded a letter of intent with Odfjell Drilling for the
drilling and completion of Sverdrup Phase 2 with Deepsea Atlantic. The letter of
intent is subject to finalization of contract.

The contract is set to commence in Q1 2022 with a duration of twelve (12) firm
wells plus five (5) optional wells. The approximate contract value for the firm
scope is up to USD 150 million (excluding any integrated services,
modifications/upgrades and mobilisation/demobilisation fees). In addition, a
notable performance incentive rate will apply when wells are delivered ahead of
target. The rate for the optional wells is at a premium to the firm wells.

Simen Lieungh, CEO Odfjell Drilling AS, says: “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. With the introduction of innovative solutions and
a focus on sustainability the wells will be completed with minimum carbon
footprint, minimum risk to personnel and ultimately at minimum cost for Equinor
and its partners.”

For further queries, please contact:
Lynne Webster, Corporate Secretary
+44 (0)7796 547889

Aberdeen, United Kingdom
7 July 2020
Odfjell Drilling Ltd.

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