Aker BP extends Odfjell rig contract to 2028 with market-linked rate
Odfjell Drilling has secured a one-year contract extension from Aker BP for a Norwegian Continental Shelf rig, extending firm backlog to 2028 and utilising a deferred, market-linked pricing mechanism to navigate dayrate volatility.
Odfjell Drilling has landed a one-year contract extension from Aker BP for the Deepsea Nordkapp semi-submersible rig, pushing the unit's firm backlog out to the end of 2028. The Norwegian operator retains additional options beyond that date. The rig has been working continuously for Aker BP since its delivery in 2019.
The commercial structure of the extension introduces a notable hedging mechanism for both parties. Rather than locking in a dayrate now, the operating rate for the added year will be set by the end of 2026. This rate will reflect prevailing market conditions at that time, as determined by two independent rig brokers.
The Deepsea Nordkapp was originally scheduled to finish its work for Aker BP at the end of 2024. It has since received multiple successive extensions, reflecting the strength of the operator's long-term supply chain strategy. Odfjell Drilling is one of just three contractors selected for Aker BP's integrated drilling and wells alliance on the Norwegian Continental Shelf, a commercial framework established in January 2023 to improve operational efficiency.
Securing prolonged employment for a high-specification asset highlights the sustained demand for modern, capable units in the North Sea basin. The Deepsea Nordkapp is a sixth-generation, dynamically positioned and winterized semi-submersible built on a Moss-enhanced CS 60E design. Such technologically advanced rigs are required to execute complex wells in the harsh weather and rough seas typical of the region.
“This extension is testament to the continuous world class performance delivered by Deepsea Nordkapp and its crew and extends our commitment to the semi-alliance we have with Aker BP," said Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling. “Deepsea Nordkapp has worked continuously with Aker-BP since delivery in 2019 and we are pleased to secure this relationship further until at least 2028.”
The contract renewal comes as the 53-year-old drilling contractor actively manages its asset base. Last year, the company expanded its fleet by acquiring the Deepsea Bollsta, which was subsequently renamed Deepsea Bergen. Securing the Deepsea Nordkapp through 2028 provides Odfjell Drilling with steady revenue visibility in a cyclical sector.
