Odfjell Drilling has announced an extension with Aker BP for the Deepsea Nordkapp semisubmersible for work on the Norwegian continental shelf. The term will begin on 1 January 2025 in direct continuation of the current contract period and run for a fixed duration of two years.
The two additional years are compensated on a market-based rate mechanism. As previously agreed with Aker BP in 2022, the contract value for 2025 has a floor and ceiling dayrate, resulting in a contract value of $124 million to $146 million, with the ceiling of the range being adjusted annually based on an inflation formula. The contract value for 2026 stands at approximately $179 million, which shall also be adjusted annually based on an inflation formula.
In addition to the market-based dayrates, Aker BP will pay performance and fuel savings incentive bonuses. The contract extension is subject to license partner approval, and now includes rolling one-year unpriced optional periods, the price of which will be based on market rates set in advance of each respective optional year.