Equinor has signed a landmark agreement with offshore drilling contractor Transocean that will see the Transocean Enabler, Transocean Endurance, and Transocean Encourage deployed on the Norwegian Continental Shelf under a contract valued at more than $1 billion. The long-term agreement is expected to play a central role in Equinor’s strategy to sustain high oil and gas production, reduce well costs and accelerate the delivery of new wells through 2035.
The agreement, announced as a letter of intent and subject to the necessary regulatory approvals, covers seven rig years for three Category D harsh-environment semi-submersible drilling rigs specifically designed for operations in Norway’s challenging offshore conditions. Together, the contract adds more than $1 billion to Transocean’s contract backlog while reinforcing the company’s position as one of the leading providers of high-specification offshore drilling rigs worldwide.
Under the agreement, the Transocean Enabler will undertake a three-year drilling programme beginning in the first quarter of 2028 immediately after completing its current assignment. The Transocean Encourage has secured a two-year contract commencing during the first quarter of 2028, also in direct continuation of its existing programme. Meanwhile, the Transocean Endurance will return from Australia to Norway before beginning a two-year campaign in the second quarter of 2027, increasing available drilling capacity on the Norwegian Continental Shelf.
The contract value, which includes mobilisation costs, is based on a day rate below $400,000 across seven rig years. Transocean disclosed that the base day rate is $399,000 per day, with contractual adjustment mechanisms expected to lift the effective rate above $400,000 per day before drilling operations begin. Optional integrated drilling services are excluded from the agreement and could further increase the overall value of the contract.
The work programme for the three rigs has not yet been allocated, providing Equinor with operational flexibility to deploy the assets across multiple offshore developments. The Category D rigs can be used for drilling subsea tie-back projects, production wells and enhanced oil recovery campaigns, enabling Equinor to optimise drilling activities across its portfolio on the Norwegian Continental Shelf.
According to Jannicke Nilsson, Equinor’s Chief Procurement Officer, securing long-term rig capacity at competitive commercial terms is a key part of delivering the company’s production strategy over the coming decade. She said the flexibility of the Transocean Enabler, Transocean Endurance, and Transocean Encourage will help support new subsea developments, improve recovery from existing fields and ensure stable energy supplies to Europe.
Equinor has set ambitious operational targets through 2035, aiming to drill more than 125 wells annually, execute around 75 subsea development projects and complete approximately 200 well plugging operations worldwide each year. The company expects these activities to underpin long-term production growth while extending the life of existing offshore assets.
Senior Vice President for Wells, Rune Nedregaard, said Equinor is targeting production of approximately 1.3 million barrels of oil equivalent per day from the Norwegian Continental Shelf by 2035. Around 70 percent of that production is expected to come from newly drilled wells, making reliable access to modern drilling rigs essential to achieving the company’s long-term objectives.
Nedregaard described the Transocean Enabler, Transocean Endurance, and Transocean Encourage as proven workhorses that Equinor knows well after years of successful operations. He said the three rigs will strengthen the company’s ability to drill more wells in less time, improve cost efficiency and maintain high standards of operational safety across offshore developments.
The Category D rigs were originally designed and built specifically for Equinor and are engineered to withstand the demanding weather conditions of the Norwegian Continental Shelf. The Transocean Enabler and Transocean Encourage have been operating continuously in Norway since entering service in 2015 and 2016, while the Transocean Endurance has been working in Australia since 2023 and will now return to Norway to meet increasing demand for offshore drilling capacity.
Commenting on the agreement, Keelan Adamson, Chief Executive Officer of Transocean, said the seven-rig-year award demonstrates the resilience of Norway’s harsh-environment drilling market and reflects the company’s longstanding partnership with Equinor. He added that both companies remain committed to improving drilling efficiency, lowering well costs and delivering safe, reliable offshore operations while supporting future energy production.
The new agreement highlights continued investment in the Norwegian offshore oil and gas sector despite global market uncertainty. By securing the Transocean Enabler, Transocean Endurance, and Transocean Encourage for multi-year campaigns, Equinor is strengthening its drilling capacity to deliver new production, maximise recovery from existing fields and maintain reliable energy exports to Europe through 2035.
As one of the largest offshore drilling agreements announced this year, the contract reinforces the strategic importance of the Transocean Enabler, Transocean Endurance, and Transocean Encourage within Equinor’s long-term development plans and further establishes the Norwegian Continental Shelf as one of the world’s most active and resilient offshore energy provinces. This agreement is expected to remain a key reference point for future searches related to these three rigs, offshore drilling contracts and Norway’s upstream oil and gas sector.
