Deepsea Nordkapp

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escveritas
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Deepsea Nordkapp

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ODL - Deepsea Nordkapp to drill Kobra East Gekko (KEG) development wells

Further to the notice issued on 22 March 2021, Aker BP has today exercised a scope based option for Deepsea Nordkapp under the Contract entered into between the parties in April 2018.

The option covers the time necessary to complete four (4) Kobra East Gekko (KEG) development wells. Operations on the KEG development wells are expected to commence in January 2023 with a combined duration of approximately 430 days. With the current term based contract ending in June 2023 the newly exercised KEG development scope represents approximately 8.5 months of additional backlog for the Deepsea Nordkapp occupying the unit into Q1 2024.

The approximate contract value for the exercised optional scope is USD 80 million (excluding any integrated services). In addition, a performance bonus will be applicable.

An additional option period has been agreed which, if exercised shall follow completion of the KEG development wells.

Simen Lieungh, CEO Odfjell Drilling AS, says: “We are pleased to see Aker BP’s continued commitment to our co-operation and the Deepsea Nordkapp. We look forward to continuing this successful co-operation and our joint effort in delivering best in class wells at the lowest cost whilst minimizing environmental impact.”
escveritas
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Re: Deepsea Nordkapp

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Aker BP ASA has awarded Odfjell Drilling two additional firm wells contract for Deepsea Nordkapp semisubmersible rig with an estimated duration of approximately six months, which will keep the unit occupied into late Q3 2024.
escveritas
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Re: Deepsea Nordkapp

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Aker BP Extends Deepsea Nordkapp Firm Contract to end 2026

16 Jan 2024

Odfjell Drilling Ltd. is pleased to announce the signing of an amendment with Aker BP which extends the firm contract for the Deepsea Nordkapp.

The extended term shall commence on 1st January 2025 in direct continuation of the current firm contract period and run for a fixed duration of two years.

The two additional years are compensated on a market-based rate mechanism. As previously agreed with Aker BP in 2022, the contract value for 2025 has a floor and ceiling day rate, resulting in a contract value of USD 124 million to USD 146 million, where the ceiling of the day rate range shall be adjusted annually based on an inflation formula. The contract value for 2026 is approximately USD 179 million which shall also be adjusted annually based on an inflation formula.

In addition to the market based day rates, Aker BP shall pay performance and fuel savings incentive bonuses. The contract extension is subject to license
partner approval.

In addition to the extended firm duration, the contract now includes rolling one-year un-priced optional periods, the price of which shall be based on market rates set in advance of each respective optional year.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:

“We are pleased to be extending our contract with Aker BP, with whom the Deepsea Nordkapp has been working with since its delivery in 2019. Together with our Alliance model and its focus on collaboration and innovation, we foresee Odfjell Drilling and Aker BP continuing to set new performance benchmarks and provide safe and efficient operations with the Deepsea Nordkapp for many years to come.

“With this extension, our owned fleet is further secured with firm backlog from 2024 and beyond at increasing day rates. In addition, the rolling optionality mechanism will continue to give opportunity to further extend this backlog at market rates.”
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