Odfjell Drilling announced that Statoil has awarded a conditional Letter of Intent (LOI) for a drilling contract for Deepsea Atlantic for 6 firm wells with an estimated total duration of 18 months, scheduled to commence in early first quarter 2019.
The contract contains the option to continue operations for Statoil after the firm period, and such options shall be based on market pricing.
The contract value is estimated to USD 160 million (including some third party services, e.g. casing running services by Odfjell Well Services) plus potential income from the contract incentive model.
The conditional Letter of Intent is subject to license approval.