Oil major BP has terminated the contract for Odfjell Drilling’s Deepsea Aberdeen semi-submersible drilling rig that was due to end in April 2022, the drilling contractor said Monday.
Under the contract terms, BP will pay Odfjell Drilling an early termination fee through monthly payments until April 2022.
The 2014-built rig, that BP used in the UK sector since the rig’s delivery, will not be without work for too long, as Odfjell has already secured a contract for the 6-gen. unit in Norway, with Wintershall Dea.
Wintershall Dea will use the harsh environment drilling unit to drill exploration wells at Dvalin North and Bergknapp fields and development wells at Vega field on the Norwegian Continental Shelf.
The contract with Wintershall is for four firm and three optional wells with an expected firm duration of approximately 300 days.
The contract is expected to begin in February/March 2021. Wintershall Dea and Odfjell Drilling have also entered into a long-term frame agreement for potential future rig needs.
As the Wintershall Dea contract falls within the original BP contract duration, BP will be entitled to a reduction in termination fee payments while the Deepsea Aberdeen is operating for Wintershall.
“In total, Odfjell Drilling expects to maintain the same net cash flow as would have been the case with continued operations under the original BP contract,” the drilling company said. Odfjell did not share the dayrate details under the new contract. Deepsea Aberdeen’s day rate with BP was $431000.
The Deepsea Aberdeen offshore drilling unit is currently at CCB outside Bergen where it will stay while securing the Acknowledgement of Compliance with Norwegian Authorities and preparing for the Wintershall Dea Contract.