Equinor and its partners have signed a letter of intent with Odfjell Drilling for the Deepsea Atlantic semisubmersible to drill 12 wells during Phase 2 of the Johan Sverdrup field development in the North Sea, following its work on the first phase.
The value of the fixed part of the agreement is approximately $150 million. Equinor said in a statement that the costs of integrated services, maintenance and options for drilling five extra wells are not included in this value. The drilling campaign is expected to begin at the start of 2022.
“Deepsea Atlantic drilled the Johan Sverdrup Phase 1 wells with excellent results, so we are pleased to secure the rig for Phase 2 as well. The rig is already on a continuing contract with Equinor, and our ambition is to keep it busy until Johan Sverdrup Phase 2 comes on stream at the end of 2022. Odfjell has a high safety standard, and the rig is one of the most efficient rigs we have,” said Erik G. Kirkemo, Senior VP for Drilling and Well Operations at Equinor.
The Phase 2 development will increase the field production capacity from 470,000 bbl/day to 690,000 bbl/day at its peak.