Odfjell drilling to take over control of SFL

SFL Corporation, the owner of the WestLinus jack-up drilling rig, has signed a rig management contract with offshore drilling company Odfjell Drilling to provide management services to units in harsh environments.

The rig delivered in 2014 is currently operated by a subsidiary of Seadrill Ltd. and has a long-term drilling contract with ConocoPhillips in the Norwegian region of the North Sea, which will continue until the fourth quarter of 2028.

In February 2021, Seadrill and some of its subsidiaries filed a Chapter 11 proceeding with the US Bankruptcy Court in Southern Texas, including the current West Linus operator.

“In the near future, in connection with the expected emergence of Seadrill from Chapter 11, the parties have agreed that a drilling contract with ConocoPhillips Skandinavia AS will be assigned from the current operator to the SFL subsidiary,” SFL said. He added that he entered the market at the same time. Agreement on rig operation management with a subsidiary of Odfjell Drilling.

“Changes in operations management from Seadrill to Odfjell require the approval of the usual regulatory agencies associated with operations on the Norwegian continental shelf. Seadrill will continue its existing charter agreement for up to approximately nine months until approval is given. The bare ship contract fee from Seadrill during this transition period will be about $ 55,000 per day. “

“Once the drilling contract is effectively allocated, SFL will receive charter employment from the rig and pay operating and administrative costs,” SFL added.

Under the contract, the rig has a semi-annual market adjustment rate based on similar jackup rig market trends in the North Sea. According to SFL, the price for the day and the remaining contract period means a charter backlog of about $ 500 million.

Odfjell Drilling said it plans to take over the rig by October 1, 2022.

Simen Lieungh, Odfjell Drilling AS CEO said in a comment: We look forward to adding a West Linus management agreement to strengthen our long-term partnership and provide ConocoPhillips with a safe and efficient operation. “