Odfjell has secured an estimated $150m-200m contract from oil and gas company Equinor to drill six production wells for the Fram and Askeladd licences on the Norwegian continental shelf (NCS).

Under the contract, the Deepsea Atlantic rig will be used to drill the wells.

The parties have also reached a master framework agreement (MFA) that contains terms for future rig contracts on the NCS.

Equinor Procurements senior vice-president Pål Eitrheim said: “We have reached a long-term agreement with standard terms that will ensure more efficient procurement processes for future assignments with Odfjell.

“In addition, we have secured an efficient rig, Deepsea Atlantic, for a fixed period to start with, before we move to continuing options that can be exercised across Equinor-operated licences.

“This is a performance-based contract aiming to promote safe and efficient operations, and it includes an incentive to reduce CO2 emissions.”

“The options will have market index prices ensuring that we have competitive conditions in the market at all times.”

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By GlobalData

Apart from drilling services, the scope of the contract includes casing running, slop treatment and cuttings handling, remote control vehicle (ROV) and fuel.

The rig will drill three ‘dual multilateral’ wells on the Fram field before proceeding to Askeladd to drill three production wells.

Equinor Drilling & Well senior vice-president Geir Tungesvik said: “This is a performance-based contract aiming to promote safe and efficient operations, and it includes an incentive to reduce CO2 emissions.”

The company noted that logistics centres are based at Mongstad and Hammerfest to support the operations. The contract work is expected to begin in January next year.