Equinor awards drilling contract for Fram, Askeladd licenses

5/25/2018

STAVANGER -- Equinor (formerly Statoil) has awarded Odfjell a contract for drilling two times three production wells for the Fram and Askeladd licenses by using the Deepsea Atlantic rig. Odfjell has also been awarded a master framework agreement (MFA).

Equinor has signed a framework agreement with Odfjell with terms that will be used for future rig contracts with Odfjell on the Norwegian continental shelf. At the same time, the first rig contract has been signed for Deepsea Atlantic under this contract format.

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Deepsea Atlantic rig. Photo: Odfjell Drilling.

“We have reached a long-term agreement with standard terms that will ensure more efficient procurement processes for future assignments with Odfjell. In addition, we have secured an efficient rig, Deepsea Atlantic, for a fixed period to start with, before we move to continuing options that can be exercised across Equinor-operated licenses. The options will have market index prices ensuring that we have competitive conditions in the market at all times,” says Pål Eitrheim, senior V.P. for Procurements.

The established work program is scheduled to start in January 2019. Deepsea Atlantic is a semisubmersible 6th generation mobile drilling rig.

The value of the well-based contract is estimated at $150-200 million for six wells. In addition to drilling services, the rig owner is responsible for casing running, slop treatment and cuttings handling, remote control vehicle (ROV) and fuel.

Currently on contract with Equinor and its license partners, Deepsea Atlantic will complete a drilling program for the Visund and Utgard licenses before it undergoes 10-year-classification.

First, the rig will drill three so-called dual multi-lateral wells on Fram field. Each of these wells will have two branches radiating from the main wellbore. Then the rig will proceed to Askeladd to drill three production wells.

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