Odfjell Drilling has announced that Equinor has decided to apply an option to extend the use of the Deepsea Aberdeen platform with the Norwegian Continental Shelf, adding a further batch of eight wells to the current contract.
Odfjell Drilling contract extension
This contract extension is expected to commence in the fourth quarter of 2025, just after the end of the current firm period. This extension will allow the Deepsea Aberdeen platform to continue operating until the third quarter of 2026. The option exercised has an estimated value of $121 million, excluding embedded services, annual cost increases, performance incentives and fuel sources .
In addition, the contract includes additional optional periods that, if exercised, could extend the use of the Deepsea Aberdeen until 2029. These optional periods are comprised of three additional blocks of eight wells each, equivalent to approximately three additional years of operation.
For these optional periods, the tariffs will be established by mutual agreement, prior to their exercise, ensuring that both parties are satisfied, with some very important financial and operational terms for the country’s economy.
The expansion of the Deepsea Aberdeen project
In statements by Kjetil Gjersdal, CEO of Odfjell Drilling AS, he expressed satisfaction with Equinor’s decision to exercise further options for the use of the Deepsea Aberdeen. In 2022, Gjersdal highlighted that the platform had maintained an ongoing contract with Equinor.
With this new job secured, the company anticipates predictable and growing revenue generation. In addition, he noted that Odfjell Drilling’s entire owned fleet now has a firm order book until at least mid-2026.
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Source and photo: Odfjell Drilling
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