UK: Largest Contract in Odfjell Drilling’s History

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Odfjell Drilling has been awarded a significant pre-contract award with BP for the provision of a new build, semi-submersible drilling unit for use in the UK’s West of Shetland region. The contract value is approximately $1.2 billion, excluding options, and represents the largest contract in Odfjell Drilling’s 40 year history.

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 7 years and is due to start in Q4 2014.

In July 2011 BP announced a decision to progress a major re-development of the Schiehallion and Loyal oil fields to the west of the Shetland Islands.

Schiehallion and Loyal have produced nearly 400 million barrels of oil since production started in 1998 and an estimated 450 million barrels of resource is still available. The investment of circa £3 billion in the re-development of the fields will take production out to 2035 and possibly beyond.

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 new build units on time and on budget and this new build for BP will be the fifth new deep water 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.”

Fifth deepwater unit delivery

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.”

Construction engineering has commenced and keel laying is scheduled for March 2013.

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Posted on January 11, 2012, in History, North Sea, South Korea, United Kingdom and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink. 2 Comments.

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