A letter of intent has been issued to Odfjell Drilling and the Deepsea Aberdeen rig for drilling of 15 wells for the Breidablikk group, for which the partnership recently submitted the plan for development and operation (PDO). Drilling is scheduled to start in the spring of 2022, and the campaign is estimated to last until the autumn of 2024, the company said in its release.
The agreement includes options for drilling additional nine wells before continuous optionality apply. The estimated value of the fixed part of the agreement is USD 290 million. Additional costs include a number of integrated services, maintenance, modifications, mobilization and demobilization.
The contract is estimated to create 200 man-years in Norway connected to the rig, and an additional 20-40 man-years related to support functions.
Deepsea Aberdeen is a semi-submersible 6th generation rig with a dual derrick.
At the end of September, Equinor and its partners submitted the PDO for Breidablikk. Several contracts have been awarded and Norwegian companies are expected to account for around 70% of the value creation in the development phase. Estimated field recovery is around 200 million barrels and investments will be around NOK 18.6 billion.
All contracts are subject to the authorities’ approval of the PDO.