Gulf Oil and Gas accountACCOUNT

Odfjell Purchases Deepsea Nordkapp & Awarded Drilling Contract by Aker BP

Source: www.gulfoilandgas.com 4/27/2018, Location: Europe

Odfjell Drilling is pleased to announce that Aker BP has awarded Odfjell Drilling a 2 year firm drilling contract with 1+1 year optional periods. The day rates for the drilling contract will be based on market terms to be determined prior to commencement of drilling operations. In addition to the market linked day rate, a performance bonus as agreed in the alliance agreement with Aker BP, as announced on 21 November 2017, will apply. The contract has a minimum value of USD 245 million, subject to certain adjustments. The commencement of drilling operations is expected in Q2/Q3 2019.

For the purpose of the drilling contract with Aker BP, Odfjell Drilling has entered into an agreement with Samsung Heavy Industries (“SHI”) to purchase the former called drilling unit Stena MidMax (the “Unit”) for USD 505 million. The Unit is an enhanced Moss Maritime CS-60 winterized and purposely built for harsh environment areas. The Unit will meet Odfjell Drilling’s requirements for delivering highly efficient operations. Odfjell Drilling has agreed to pay a pre-delivery instalment of approximately USD 220 million within 30 April 2018, while the remaining purchase price is payable on delivery of the Unit. The Unit will be named “Deepsea Nordkapp”.

As informed in the company presentation published on 19 April 2018 in connection with the Private Placement (the “Company Presentation”), the Odfjell Drilling intends to finance the acquisition of the Unit through (i) a contemplated USD 325 million senior secured term loan facility, (ii) proceeds from the Private Placement, (iii) proceeds from a contemplated issue of preference shares to an affiliate of Akastor AS (“Akastor”) and (iv) a seller's credit from SHI of USD 48.25 million.

Odfjell Drilling is in constructive dialogue with bank lenders for the USD 325 million new senior secured term loan. The senior secured term loan is expected to have a similar structure as Odfjell Drilling’s existing term loans as further described in the Company Presentation.

Furthermore, Odfjell Drilling has now signed a preference share investment agreement and a warrant investment agreement with an affiliate of Akastor ASA to carry out a USD 75 million preference share issue and an issuance of warrants for 5,925,000 common shares in Odfjell Drilling to such affiliate, on the main terms described in the Company Presentation. The issuance of the preference shares and the warrants is subject to the approval at a special general meeting of Odfjell Drilling which will be convened separately. The board of directors of Odfjell Drilling has resolved to propose to the special general meeting that the 16,123,125 preference shares and the warrants for 5,925,000 common shares be issued.

Quote Simen Lieungh, CEO of Odfjell Drilling:
“Expanding our fleet with another modern harsh environment semi is an important step in our strategy of growth, and strengthens our position in the market as the preferred harsh environment drilling contractor.

This drilling contract with Aker BP exemplifies the mutual benefits of the Alliance partnership, whereby Aker BP has now secured a second advanced harsh environment drilling unit, having secured a contract for the GVA unit Deepsea Stavanger in December 2017. Odfjell Drilling is very pleased to have this opportunity with Aker BP and we aim to hit new records in drilling efficiency and be a significant contributor to Aker BP achieving its ambitious targets.”

Rigs >>

Rigs News in Norway >>

Nigeria >>  12/9/2019 - Shelf Drilling, Ltd. has secured a one-year extension on the Trident XIV jack-up rig in direct continuation of its current contract for workover opera...
United States >>  11/25/2019 - Valaris plc (VAL) (Valaris) announced new contracts and contract extensions, with associated revenue backlog of approximately $285 million, awarded su...

Nigeria >>  11/18/2019 - KCA Deutag (KCAD) announces that its land drilling operation has won new contracts worth approximately $460m in the Middle East, Africa and Europe. ...
Indonesia >>  11/15/2019 - Jack-up drilling rig "HAKURYU-14" currently operating at Mahakam Block, Republic of Indonesia has been awarded a one-year contract extension by PT PER...

United Arab Emirates >>  11/14/2019 - ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), announced a major rig fleet expansion program to support ADNOC’s upstream ...
Trinidad and Tobago >>  11/13/2019 - Maersk Drilling has entered a contract with BG International Ltd., a subsidiary of Shell, for work offshore Trinidad and Tobago on a two-well developm...

Related Categories: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 

Related Articles: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 


Norway Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.