Monday was jubilation in the roof with Odfjell Drilling. The company secured the key rig contract for Johan Sverdrup.

The deal is worth 2.5 billion over three years and provide a daily rate of $ 300,000.

The contract is the first of three rig jobs to be awarded on the Norwegian shelf these summer months.

The rate of the agreement is in line with expectations, but the first official confirmation that the new times on the Norwegian shelf what rig rates are concerned.  Deepsea Atlantic goes down 47 percent compared to the current agreement, signed in very good times.

The Market Decide

Statoil’s technology director, Margaret Øvrum, has been one of prominent figures in the company’s efforts to reduce costs in Norway by 20-30 percent.

She Is Now 47

Perhaps no wonder she is happy.

It is the market that determines the rates.  Clearly oil price is very much lower a few years back, so this is for us a proper rate, she says to the decline.

But is not this a victory for you, you’ve fronted these cuts very often?

I also think it’s very important that we have effective implementation of rig operations, so we’re working very much with.  Then something comes from the marketing side and something of how we work together and how we manage to create efficiency in drilling operations.  Both are important to me.

Queue Of Idle Rigs

With 8 rigs on the way the contract only in the next few months, probably a long line of rigs offered in the Johan Sverdrup contract.

Ovrum would not confirm how many we are talking about, but Statoil has got what they asked for – an effective rig for “new price.”

We’ve had a lot of competition on the rig contract.  I think the rig companies met us in a very good way.

The level in the Johan Sverdrup contract puts in all respects standard for two upcoming jobs on the Norwegian shelf.  Deepsea Atlantic is a new and modern rig – older rigs must therefore rely on to go even lower than $ 300,000.

The two big jobs that everyone will have are:

Maria: Drilling is scheduled second quarter 2017. Possible rigs here will be Transocean Barents and Transocean Spitsbergen or West Venture.  The contract is for 580 days and Wintershall plans to award the contract this summer

Viper Kobra: The job relates to the drilling of the Viper Kobra development in the Alvheim area.  This is a program of four wells commencing in the third quarter of next year and will extend over 250 days.  It is relatively shallow at the drilling location, so many rigs will be able to take on the job.  It is unclear when it will be allocated here.


Rigs of contract in 2015:

Transocean Searcher

Island Innovator

Transocean Spitsbergen

West Venture

Bredford Dolphin

Transocean Barents


Rigs of contract in 2016:

Songa Trym

Leiv Eiriksson

Transocean Arctic

Songa Dee

Songa Delta

Transocean Winner


Bideford Dolphin

Stena Don

West Hercules

Scarabeo 8

Borgland Dolphin

Scarabeo 5

PCCODENET Staff – Your Source For Oil & Gas and Marine News