Northern Ocean Forms Alliance with Springfield as It Secures Work for Deepsea Bollsta Rig
September 27, 2024
Offshore drilling contractor Northern Ocean has signed a strategic alliance agreement in Ghana and a contract with the Springfield Group for the use of the Deepsea Bollsta on a well test of the Afina 1x well, amongst other activities.
The strategic alliance includes a mutual exclusivity to explore a long-term field development program in Ghana. The firm contract duration is for one well test estimated to be 30-35 days and will begin early in the fourth quarter this year.
The Ghana program will precede the contract with a subsidiary of a major operator which was announced in July 2024.
The agreed clean dayrate is $440,000, excluding mobilisation and demobilisation. With this new contract award for Deepsea Bollsta, the Company has an estimated aggregate revenue backlog between $85 million and $105 million, excluding bonuses, reimbursables and undeclared options.
Both parties are said they remain committed to spending the time during the exclusivity period until January 1, 2025 to enter into a firm agreement for long term field development drilling starting mid- 2025.
Built in 2019 by Hyundai Heavy Industries, Deepsea Bollsta semi-submersible rig incorporates Moss Maritime CS-60Mk design.
The rig is capable of operating at waters depths of 10,000 feet (3000 meters), and can accommodate 140 people.
“This alliance creates the foundation for Northern Ocean and Springfield to build a long-term relationship in Ghana where Springfield is an important operator. The short-term work in advance of the already announced drilling contract proves that it is possible to backfill idle periods in direct discussions with oil companies.
“Although it is short-term work it brings the Deepsea Bollsta back in operation earlier than anticipated, and Northern Ocean adds an important oil company in West Africa to its list of clients. This demonstrate that Northern Ocean’s superior assets combined with Odfjell Drilling`s operation is a very attractive solution for our clients,” Arne Jacobsen, Chief Executive Officer of NOL, commented:
“The appraisal of Afina 1x through a well test helps finalize the unitization between Springfield- ENI/ Vitol and will bring significant value to the government of Ghana and all stakeholders involved in this unitization together with GNPC and GNPC Explorco, our partners, we are really excited to be working with NOL in this historic drilling campaign as the first independent African company to operate in deep waters.
“The success of this campaign will result in us being the first independent African producer in deep waters as well,” added Kevin Okyere, Chief Executive Officer of Springfield.
