Odfjell wins extension

Stavanger: Extension for Oslo-listed player

Oslo-listed Odfjell Drilling has secured an extension to an existing drilling contract with BP for the semi-submersible rig Deepsea Stavanger.

The Norwegian driller has won an extension for work at Block 18 in Angola worth about $210 million, yielding a dayrate of around $532,000.

The company will be required to drill six wells under the contract terms, with work expected to take about 13 months.

The extension also includes two unpriced options for two wells each.

Odfjell was awarded the original $340 million contract back in 2010, giving a dayrate of about $466,000.

The extension was among those being targeted by the contractor amid fears of a softening rig market with lower dayrates for such units.

Chief executive Simen Lieungh had warned of shorter lead times for work and a lack of new long-term contract tenders as major oil companies cut back spending.

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