The firm part of the contract extension, with an estimated backlog of $181 million, is expected to begin in October 2023 and conclude in April 2025.
The estimated firm backlog excludes revenue associated with performance incentives, additional services, and option periods provided for in the contract.
This contract follows contract extensions Equinor granted in May for integrated drilling and well services as well as additional services for work on Equinor-operated fields on the Norwegian continental shelf (OGJ Online, May 9, 2022).
The contract is for nine wells and options for another two in the Haltenbanken West Unit and on behalf of Halten East licenses. It includes drilling services such as casing running, slop treatment, cuttings handling, and two remotely operated vehicles.
The rig is scheduled to start the campaign in fourth-quarter 2023 for three production wells for the Haltenbanken West Unit, which is part of the Kristin South area in the Norwegian Sea. Subsequently, six production wells are planned for Halten East, which will be tied in to the Åsgard field in the Norwegian Sea, before considering another two wells on Kristin South.
The drilling program, including options, is estimated to last for slightly less than 2 years. The value of the contract is estimated at about NOK2.4 billion ($254 million), including options.
The rig already has a framework agreement with continuing options and has been drilling for Equinor on a continuous basis since 2019.
Transocean Spitsbergen is a sixth-generation dual-derrick winterized rig capable of drilling high-pressure/high-temperature formations and is equipped with an automatic drilling control system. It is currently being used for well completion on Snorre field.
Halten East comprises Bauge, Maria, and Hedrun fields.
Equinor is operator at Bauge with partners Wintershall DEA Norge AS (27.5%), Vår Energi ASA (17.5%), and Neptune Energy Norge AS (12.5%).
Equinor is also operator at Hedrun (13.0%) with partners Petoro AS (57.8%), ConocoPhillips Skandinavia AS (24.0%), and Vår Energi (5.2%).
Wintershall DEA is operator at Maria (50%) with partners Petoro (30%) and Sval Energi AS (20%).
Equinor is operator at Haltenbanken West (54.82%) with partners Petoro (22.52%), TotalEnergies EP Norge AS (6%) and Vår Energi (16.66%).
[UPDATED June 8 to add details]