Norwegian offshore contractor Odfjell Drilling plans to spin off two of its three core business units to create a new company, Odfjell Technology, and list it on the Oslo Stock Exchange within two months.

The two units — energy and well services — reported revenues of $154 million and $85 million respectively between January and September last year, compared with revenues of $428 million made in the same period by the Odfjell business unit covering mobile offshore drilling units.

The energy unit has been providing drilling services in the North Sea to BP, Equinor, ConocoPhillips and Wintershall Dea.

The well services unit has 14 operational bases worldwide, extending services in well intervention, drilling tools, tubular running and casing drilling to more than 200 customers, said Odfjell.

Odfjell Technology is expected to proceed with an offer of four-year krone-denominated secured bonds totalling about Nkr1.1 billion ($123 million) in face value and obtain a new $25 million revolving credit facility, Odfjell Drilling said.

The spin-off will focus on innovation and the development of new services, technologies and products required in the energy transition, and seek to expand into green energy ventures.

The management team will consist of chief executive Simen Lieungh; chief financial officer Jone Torstensen; executive vice president for well services George Taggart; and Elisabeth Haram, executive vice president for drilling operations and engineering.

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