Odfjell Drilling Shetland Ltd has received a notice of early termination from BP
Exploration Operating Company Ltd of the contract for semi-submersible Deepsea
Aberdeen. The contract was originally due to expire in April 2022. In
accordance with the contract terms, Odfjell Drilling will be compensated with an
early termination fee through monthly payments until April 2022.
Concurrent with the BP termination, Odfjell Drilling has been awarded a contract
by Wintershall Dea Norge AS for use of the Deepsea Aberdeen on exploration wells
at Dvalin North and Bergknapp fields and development wells at Vega field on the
Norwegian Continental Shelf. The contract consists of four firm and three
optional wells with an expected firm duration of approximately 300 days. The
contract is anticipated to commence in February/March 2021. In addition,
Wintershall Dea and Odfjell Drilling have entered into a long-term frame
agreement for potential future rig needs.
As the Wintershall Dea contract falls within the original BP contract duration,
BP shall be entitled to a reduction in termination fee payments while the
Deepsea Aberdeen is operating for Wintershall.
In total, Odfjell Drilling expects to maintain the same net cash flow as would
have been the case with continued operations under the original BP contract.
"We would like to thank BP for their co-operation and support throughout the
Deepsea Aberdeen contract thus far. The teamwork and overall efficiency of the
well execution has been impressive. We look forward to continued cooperation on
the platform drilling operations provided by Odfjell Drilling.
The Wintershall Dea contract is an important addition to Odfjell Drilling and we
look forward to once again working with Wintershall Dea in the Norwegian sector.
The contract is another recognition of Odfjell Drilling's ability to provide
efficient drilling operations in harsh environments." says CEO of Odfjell
Drilling AS, Simen Lieungh.
Deepsea Aberdeen is at CCB outside Bergen where it will stay while securing the
Acknowledgement of Compliance with Norwegian Authorities and preparing for the
Wintershall Dea Contract.
For further queries, please contact:
Lynne Webster, Corporate Secretary
+44 (0)7796 547889
Aberdeen, United Kingdom21 September 2020Odfjell Drilling Ltd.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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