Aker BP extends contract with Odfjell Drilling semisubmersible through 2026

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.