Equinor signs rig contracts, collaboration agreement with Transocean

Equinor Energy AS has let contracts for the use of Transocean Encourage, mainly in the Norwegian Sea, and Transocean Enabler, for Johan Castberg field. The companies have also signed a collaboration agreement, the operator said in a release Mar. 28.

The agreement with Transocean, one of Equinor’s largest rig suppliers, expands the companies’ years-long cooperation “by reserving one rig for the drilling of both production and exploration wells in the Norwegian Sea, and one rig for the development of the Johan Castberg field,” said Mette H. Ottøy, Equinor’s chief procurement officer.

The semi-submersible rigs have been on 8-year contracts with Equinor that expire Dec. 1, 2023, and Apr. 1, 2024, respectively. This is the first contract extension since the rigs were built, specialized for Norwegian conditions, Equinor said.

The drilling program in the Norwegian Sea consists of nine wells drilled on Tyrihans, Verdande, Andvare, and Vigdis fields in the Tampen area of the North Sea.

Verdande and Andvare will be tied in to Norne field. The drilling program also includes exploration wells, and may be further extended, adding six wells. The estimated total value of the nine wells is about $191 million, and the drilling campaign is expected to start Dec. 1, 2023, the operator said.

On Johan Castberg field, Transocean Enabler will have a fixed drilling program of 19 wells and options on another eight wells. The total contract value is estimated at $415 million, the fixed part accounting for $295 million. The new contract will come into effect between Apr. 1 and July 1, 2024.

The estimated contract values include drilling services such as casing running, wastewater treatment, cuttings management, and two remotely operated vehicles. The agreement with Transocean Enabler also includes wired drill pipe services.

Licensees in the Johan Castberg are Equinor (operator, 50%), Vår Energi AS (30%), and Petoro AS (20%).