Odfjell Drilling signs contract extension with Aker BP ASA for vessel delivery based on market and optional periods.
Odfjell Drilling has announced the extension of the firm contract for Deepsea Nordkapp, an important achievement for the company. This sixth-generation drillship, with a CS 60E design improved by Moss, has excelled in the offshore drilling sector, and the partnership with Aker BP has been fundamental to its success. Contract extension until the end of 2026 brings stability and security for future operations from Deepsea Nordkapp.
With the announcement of the contract extension, Odfjell Drilling further strengthens its position in the offshore drilling market. Deepsea Nordkapp, with its CS 60E design, is one of the company's most important assets and the partnership with Aker BP has been fundamental to the success of this two-year firm operation. The extension of the contract is further proof of the trust and recognition in the work carried out by Odfjell Drilling and Deepsea Nordkapp.
Deepsea Nordkapp Firm Contract with Odfjell Drilling
The additional two years are offset by a fee mechanism market-based, said Odfjell Drilling. As previously agreed in 2022, the contract value for 2025 has a minimum and maximum daily rate, resulting in a contract value of US$124 million to US$146 million, where the daily rate range cap will be adjusted annually based on an inflation formula. The contract value for 2026 is approximately US$179 million, which will also be adjusted annually based on an inflation formula.
In addition to daily market-based fees, Aker BP will pay bonuses of incentive de performance and fuel economy. A extension of the contract is subject to approval do partner licensed.
Benefits of Contract Extension
In addition to the extended firm duration, the contract now includes ongoing one-year non-price optional periods, which will be priced based on market rates set prior to each respective optional year.
Kjetil Gjersdal, CEO of Odfjell Drilling, said: 'We are pleased to extend our agreement with Aker BP, with whom Deepsea Nordkapp has worked since its delivery in 2019. Together with our alliance model and its focus on collaboration and innovation, we anticipate that Odfjell Drilling and Aker BP will continue to set new performance standards and provide safe and efficient operations with Deepsea Nordkapp for many years to come.
With this extension, our own fleet is even more protected with a firm portfolio of orders from 2024 and beyond, with increasing daily rates. Furthermore, the ongoing optionality mechanism will continue to provide the opportunity to further extend this delay at market rates.' Drilling Activity Europe
