Fossil Energy – Drilling
Odfjell Drilling has signed two Letters of Intent (LOIs) with a single client for the 10,000-ft Deepsea Atlantic semisubmersible rig to conduct operations in the North Sea region.
According to Esgian Rig Service, the LOIs have a combined firm duration of 23 months and a value of approximately $290 million excluding integrated services, upgrades/modifications or mobilisation fees.
This gives a dayrate of about $420,000. In addition to the base value, the LOIs include provisions for performance bonuses and fuel incentives.
Following the firm period, there are four priced one-well options. The arrangement also provides for three further optional periods of approximately one-year each with the rates for each period to be mutually agreed prior to exercising.
The LOIs are contingent on license approval with one of the LOIs also contingent on governmental approval and formalisation of the contract. The work will begin consecutively following the completion of the Special Periodic Survey (SPS), currently planned during the first half of 2024.