$518m rig deal seals Odfjell’s bet on North Sea drilling future
Odfjell Drilling locks in three-year contract for Deepsea Bergen rig starting 2028, extending backlog to Q1 2031.
The Deepsea Bergen, a 2019-built harsh environment rig, is currently operating for Equinor and will transition to Vår Energi upon completion of its existing contract.
The rig, formerly known as Deepsea Bollsta, is designed for extreme conditions, featuring an enhanced CS 60 E specification with NOx-friendly power units and closed bus (ER) operations.
Kjetil Gjersdal, CEO of Odfjell Drilling, emphasised the strategic importance of the contract:
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“We are very pleased to have secured a long-term contract award for the Deepsea Bergen less than twelve months after our acquisition of the unit. The Deepsea Bergen has confirmed its capability to deliver world-class operational performances, and we look forward to seeing the unit working with Vår Energi to achieve their exciting business objectives.”
Kjetil Gjersdal·Chief Executive Officer of Odfjell Drilling
The terms of the letter of award (LOA) are structured to foster long-term investment from both parties, ensuring that the Deepsea Bergen can deliver optimal safety and efficiency.
Technical capabilities and market implications of the Deepsea Bergen: Odfjell
Its enhanced CS 60 E design includes SCR (Selective Catalytic Reduction) power units, which significantly reduce NOx emissions, aligning with the industry’s growing emphasis on environmental compliance. The rig’s closed bus (ER) operations further enhance its efficiency, allowing for seamless integration with modern drilling technologies.
With a drilling capacity of 12,000 metres, the Deepsea Bergen is equipped to handle a wide range of offshore projects, from exploration to development drilling. Its ability to accommodate 180 personnel also makes it suitable for complex, long-duration campaigns, a factor that likely played a role in Vår Energi’s decision to secure the rig for three years. The contract’s start date in early 2028 suggests that Vår Energi is planning ahead for its drilling programmes, a move that could set a precedent for other operators in the region.
The financial implications of the deal extend beyond the immediate $518m value. For Odfjell Drilling, the contract provides a buffer against market fluctuations, particularly in an era of energy transition where offshore drilling projects face increasing scrutiny. The extension of the rig’s backlog to Q1 2031 also offers a degree of certainty for stakeholders, including investors and crew members, who benefit from the stability of long-term employment and operational continuity. Gjersdal’s comments reflect this optimism:
“With backlog on the unit now extending until at least the first quarter of 2031, we are very excited about what the future holds for the rig and her crew.”
Kjetil Gjersdal·Chief Executive Officer of Odfjell Drilling
The deal’s timing is also significant. Odfjell Drilling acquired the Deepsea Bergen less than a year before securing this contract, a rapid turnaround that demonstrates the company’s ability to identify and capitalise on market opportunities. This agility is particularly valuable in the offshore drilling sector, where asset utilisation and contract duration are key drivers of profitability.
For Vår Energi, the contract ensures access to a state-of-the-art rig capable of meeting its operational needs in the North Sea. The company’s decision to lock in the Deepsea Bergen for three years reflects a strategic approach to managing its drilling portfolio, prioritising reliability and performance in a competitive market. The rig’s technical specifications, including its NOx-friendly design and closed bus operations, also align with Vår Energi’s sustainability goals, a growing consideration for energy companies worldwide.
The broader market implications of the deal are equally noteworthy. The offshore drilling industry has faced challenges in recent years, including fluctuating oil prices, geopolitical uncertainties, and the accelerating shift toward renewable energy. However, contracts like this one signal a continued demand for high-specification rigs capable of operating in harsh environments. For Odfjell Drilling, the deal reinforces its position as a leading player in the semisubmersible market, while for Vår Energi, it underscores the importance of long-term planning in securing critical assets.
Looking ahead, the Deepsea Bergen’s transition to Vår Energi in 2028 will be closely watched by industry analysts. The rig’s performance during its current contract with Equinor has already demonstrated its operational capabilities, and its upcoming work with Vår Energi will provide further insights into its adaptability and efficiency. For Odfjell Drilling, the contract serves as a blueprint for future asset acquisitions and partnerships, highlighting the value of strategic investments in high-quality rigs.
The offshore drilling sector remains a cornerstone of the global energy industry, and deals like this one illustrate the enduring demand for advanced, reliable drilling solutions. As companies like Odfjell Drilling and Vår Energi continue to navigate the complexities of the energy transition, long-term contracts such as this will play a crucial role in ensuring operational stability and financial resilience.
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