Odfjell Drilling Enters LOI for Second Phase of Johan Sverdrup

August 8, 2020 | Oil & Gas | Energy Facts Staff Writer | 2min

Equinor has awarded a letter of intent (LOI) with Odfjell Drilling for the drilling and completion of Sverdrup Phase 2 with Deepsea Atlantic. The letter of intent is subject to finalization of contract.

The contract is set to commence in Q1 2022 with a duration of twelve (12) firm wells plus five (5) optional wells. The approximate contract value for the firm scope is up to USD 150 million (excluding any integrated services, modifications/upgrades and mobilisation/demobilisation fees). In addition, a notable performance incentive rate will apply when wells are delivered ahead of target. The rate for the optional wells is at a premium to the firm wells.

Simen Lieungh, CEO Odfjell Drilling AS, says: “This contract award has come at an important time for Odfjell Drilling with the current challenges faced by the industry. We acknowledge Equinor for proceeding with long term developments such as Johan Sverdrup in this climate and we shall deliver on the trust they and the partners have placed in Odfjell Drilling.

We saw that our performance on Phase 1 of the Johan Sverdrup development in 2016 set a new benchmark for harsh environment drilling. Together with Equinor and its partners we intend to take the next step and set a new benchmark on the Johan Sverdrup Phase 2 wells. With the introduction of innovative solutions and a focus on sustainability the wells will be completed with minimum carbon footprint, minimum risk to personnel and ultimately at minimum cost for Equinor and its partners.”