Bermuda-based Northern Drilling has bagged a contract for its West Bollsta rig from Lundin Norway to execute a ten-well program offshore Norway.
The drilling program will be in the Norwegian North Sea and will include the development of the Luno II field and the Rolvsnes discovery, said Northern Drilling.
Execution of the contract is expected to commence in the second quarter of 2020 and will be subject to Lundin Norway’s fulfillment of certain customary conditions pertaining the two offshore projects.
The contract comes with the option of drilling four additional wells using the harsh environment rig. It was signed between Lundin Norway and Seadrill Norway Operations, a subsidiary of Seadrill.
Northern Drilling, in a statement, said: “Should all options be exercised, West Bollsta is expected to be contracted to Lundin Norway until Q3 2022. The day rates for the optional period will be based on a market indexed rate which enables the Company to benefit from the tightening harsh environment market.”
The offshore drilling contractor has signed an agreement with Seadrill subsidiaries to mobilize and manage the operations of West Bollsta for the rig contract.
The company said that the operating agreement will include customary scope for commercial and technical services to provide safe and reliable operations from delivery of the West Bollsta rig, which is expected in Q2 2019, through the duration of the contract.
In January, Lundin Norway agreed to acquire the entire acreage position of Lime Petroleum in Utsira High offshore Norway to increase its stakes in the Rolvsnes discovery and along with it the Goddo prospect. The acquisition increases the stake of Lundin Norway in the Rolvsnes oil discovery in the PL338C license and in the nearby license PL338E1 from 50% to 80%.
The Rolvsnes oil discovery is located 3km from Lundin Norway-operated Edvard Grieg platform. The discovery has a gross estimated resource of 14-78 million barrels of oil equivalent (MMboe).
In October 2018, Lundin Norway signed a deal to acquire Equinor’s entire stake of 15% in license PL359 for an undisclosed price in a move to increase its stake in the Luno II oil discovery.