Newbuild Rig Transocean Norge Lands Six-Well Contract from Equinor with Options

Transocean Norge.
Transocean Norge. Photo: Equinor

Norwegian energy giant Equinor announced today it has awarded Transocean a six-well contract on the Norwegian continental shelf (NCS) for the newbuild harsh environment drilling rig Transocean Norge.

Drilling start-up is scheduled for the summer of 2019 upon delivery of the rig. 

The contract also includes options for drilling four additional wells and “is intended for subsequent continuing options”, Equinor said in a statement.

Transocean has a previously-signed a framework agreement with Equinor. Transocean Spitsbergen was the first rig to be included under the agreement terms, and Transocean Norge will be the second.

The contract value for the six wells is estimated at approximately USD 89 million. The services covered by the contract include drilling services such as slop treatment and cuttings handling, and part of the mobilization fee, Equinor said.

Transocean said the initial contract is estimated at 300 days and is expected to commence in July 2019. 

The six wells will be drilled in the Tordis/Vigdis, Visund, Bauge and Snorre licenses.

“We are pleased to sign an agreement with a new, efficient, state-of-the-art rig, and to continue our good cooperation with this company. We have a common goal of working safely and efficiently, and we look forward to seeing the rig in operation for Equinor from next year. This is one of the rigs we have chosen for a long-term cooperation,” says Geir Tungesvik, Equinor’s senior vice president for Drilling & Well.

The Transocean Norge is 67% owned by Hayfin Capital Management and 33% owned by Transocean. The rig is designed for harsh environments such as the NCS.

“We are very pleased to have so quickly secured a contract for the Transocean Norge, which we recently acquired through our joint venture with Hayfin,” said Jeremy Thigpen, Transocean’s President and Chief Executive Officer. “This contract provides further evidence of the strong demand for high-specification, harsh environment semisubmersibles, and of the relationship and history of solid performance that we have with Equinor.”