Offshore drilling contractor Transocean has won a contract extension with Equinor for the harsh environment semi-submersible drilling rig Transocean Spitsbergen for work offshore Norway.
Equinor has added nine more wells to the rig contract, and two one-well options.
Transocean said that the firm part of the contract extension, with an estimated backlog of $181 million, is expected to begin in October 2023 and conclude in April 2025.
The estimated firm backlog excludes revenue associated with performance incentives, additional services, and option periods provided for in the contract.
According to Equinor, the value of the contract, including options, is estimated at around NOK 2.4 billion (around $253,3 million)
The rig is scheduled to start the drilling campaign in the autumn of 2023 for three production wells for the Haltenbanken West Unit, which is part of the Kristin South area in the North Sea.
After that, six production wells are planned for Halten East, which will be tied into the Åsgard field in the Norwegian Sea, before considering another two wells on Kristin South. The whole drilling program, including options, is estimated to last for slightly less than two years.
Transocean Spitsbergen already has a framework agreement with continuing options and has been drilling for Equinor on a continuous basis since 2019.
“Transocean has over an extensive period demonstrated that they deliver safe and efficient drilling operations for Equinor. We have therefore signed a long-term contract with them for a drilling program for Halten East and Kristin South,” says Geir Tungesvik, executive vice president for Projects, Drilling & Procurement.
“We are pleased that we have now established predictability for these two operated licenses. Thanks to the framework agreement with Transocean, we had an efficient process for both parties, truly leveraging the effect of our long-term collaboration,” he says.
Transocean Spitsbergen is a 6th generation dual-derrick winterized semi-submersible rig capable of drilling high-pressure/high-temperature formations, and is equipped with an automatic drilling control system. The rig is currently being used for well completion on the Snorre field.
The estimated contract value includes drilling services such as casing running, slop treatment, cuttings handling and two remotely operated vehicles (ROV).
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