Norwegian oil company Aker BP has exercised the second one-year option for the extension of the contract for Odfjell Drilling's Deepsea Nordkapp semi-submersible drilling rig.
The extension will begin after the expiry of the first optional period in June 2022.
"The approximate contract value for the exercised optional scope is USD 109 million (excluding any integrated services). In addition, a performance bonus will be applicable," Odfjell Drilling said.
An additional scope based option period has been agreed which, if exercised shall follow completion of the firm period and have a duration of up to 12 months, Odfjell Drilling said.
Simen Lieungh, CEO Odfjell Drilling AS, says: “We are very pleased to see Aker BP’s continued commitment to the Alliance Agreement between the parties. The Alliance has delivered exceptional performance on Deepsea Nordkapp and we see this extension a recognition of those good results. With the addition of a further option period we look forward to continuing the Alliance into the future.”
Aker BP originally signed the rig contract in April 2018, when Odfjell Drilling agreed to buy Deepsea Nordkapp from Samsung Heavy Industry, following the cancellation of the rig order by Stena Drilling. The semi-submersible drilling rig was then delivered to Odfjell Drilling in 2019.
Under the original contract, the rig was to stay with Aker BP for two years until May 2021, however, Aker BP then in December 2019 exercised its first of two options, securing the rig for itself until mid-2022. This has now been extended by one more year.