European oil exploration and production company Neptune Energy has extended the contract for the Deepsea Yantai semi-submersible offshore drilling rig until late 2021.

Formerly known as the Beacon Atlantic, the Deepsea Yantai rig is owned by China’s CIMC and managed by the Norwegian drilling contractor Odfjell Drilling.

Odfjell Drilling noted that Neptune Energy has extended the contract for the semi-submersible rig with three additional wells taking the rig to late next year.

According to Odfjell, the rig will conduct the second drilling phase of Neptune-operated Fenja oil and gas field development project.

Furthermore, the parties have agreed to increase the number of optional wells from the remaining five to ten.

Odfjell Drilling CEO Simen Lieungh said: “The extension of the Deepsea Yantai is an acknowledgement of the excellent work performed by our team in the mobilisation, start-up and operation of the Deepsea Yantai.”

In August, Neptune Energy announced the discovery of oil at the Dugong well in the Norwegian part of the North Sea.

Neptune Energy discovered hydrocarbons at the Dugong well in July this year.

In June, Neptune Energy announced plans to cut 400 jobs across nine countries to improve cash flow amid low oil prices. These redundancies represent nearly 21% of the company’s staff.