Deepsea Atlantic

Odfjell Drilling has secured two contracts worth more than Nkr4.35bn ($561m) from Statoil for drilling wells on the company’s Johan Sverdrup field in the North Sea.

The contracts were given for the Deepsea Atlantic semi-submersible rig, as well as for drilling services on the fixed drilling unit to be installed on the oil field.

With a value of over Nkr2.5bn ($322m) the rig contract includes the charter of the Deepsea Atlantic rig for a period of three years starting from March 2016, with additional options for six months.

Statoil technology, projects and drilling executive vice-president Margareth Øvrum said: "This contract is an important milestone for the Johan Sverdrup project. We have secured an efficient rig that will help maximise values from the field on competitive terms."

Johan Sverdrup field senior vice president Øivind Reinertsen said: "The Deepsea Atlantic rig will drill minimum 13 pilot wells on the field prior to production start from Johan Sverdrup in late-2019.

"This enables us to utilise the production capacity from Johan Sverdrup as efficiently as possible."

Odfjell will also provide drilling services on the fixed drilling unit on the Johan complex beginning December 2018 as part of another four-year contract which has an estimated value of NOK1.85bn ($238m).

"The Deepsea Atlantic rig will drill minimum 13 pilot wells on the field prior to production start from Johan Sverdrup in late-2019."

According to Statoil, the drilling will be supported from Odfjell Drilling’s Stavanger office.

Aibel together with Nymo in Grimstad and National Oilwell in Kristiansand will build the drilling rig for the Johan Sverdrup field.

Statoil said that the contracts are subject to approval from the Norwegian Parliament.

During the initial phase of the Johan Sverdrup development, investment costs are estimated at Nkr117bn ($15bn) and the concept will consist of four installations, including a utility and accommodation platform.

The concept will also include a processing platform, a drilling platform and a riser platform, as well as three subsea templates for water injection.

The Johan Sverdrup partnership, which has recommended Statoil as the operator of all field phases, comprises Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil.


Image: The Deepsea Atlantic semi-submersible rig. Photo: courtesy of Marit Hommedal / Statoil.