Odfjell Drilling to build sixth-generation semi for $1.2 billion BP contract

deepseastavangermicroBergen, Norway, headquartered Odfjell Drilling has been awarded a significant pre-contract award with BP for the provision of a newbuild, semi-submersible offshore drilling unit for use in the U.K.'s West of Shetland region. The contract value is approximately $1.2 billion, excluding options, and is the largest contract in Odfjell Drilling's 40 year history.


Photo: Odfjell Drilling

The new unit will be involved in drilling in the Schiehallion and Loyal fields and will form a key part of the Quad 204 development. The full contract, which is subject to approval by the Quad 204 Partnership, will have a fixed duration of seven years and is due to start in fourth quarter 2014.

The Quad 204 project is a joint venture to re-develop the Schiehallion and Loyal fields, West of Shetland, in the U.K. BP is operator and owns 36.3 percent, with other interests as follows: Shell (36.3 percent); Hess Ltd (12.90 percent); Statoil (UK) Ltd (4.84 percent); OMV (UK) Ltd. (4.84 percent) and Murphy Petroleum (4.84 percent).¨

President & CEO of Odfjell Drilling, Simen Lieungh states:

"This contract award from BP is of great importance and represents a solid contribution to the company's further growth and is a recognition of Odfjell Drilling's status as a reputable international drilling contractor. We have a track record of delivering newbuild units on time and on budget and this newbuild for BP will be the fifth new deepwater unit for the company. We highly value our relationship with BP and look forward to developing this relationship further in the future."

Jim Cowie, BP Vice President for Wells, said: "The Quad 204 partnership is making this major investment in its drilling capability in response to high future demand West of Shetland and a desire to invest in the latest equipment that can help deliver its business plans. This is an exciting development and one which builds on BP's recent announcements concerning its investments in the North Sea. Odfjell Drilling is a safe, efficient and innovative drilling contractor that is performing well for BP in the North Sea and with Deepsea Stavanger offshore Angola."

The new state of the art sixth generation rig will be built in South Korea by Daewoo Shipbuilding & Marine Engineering (DSME).

"The new rig for BP is of the enhanced GVA7500 harsh environment design and will be a sister rig of the Deepsea Atlantic and Deepsea Stavanger previously delivered to us by DSME. We are pleased to continue our collaboration with DSME," says Mr. Lieungh."

January 11, 2012

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