An Equinor Energy AS subsidiary signed a contract with SFL Corp. Ltd. for the harsh environment semi-submersible drilling rig Hercules for work offshore Canada.
The estimated contract value is about $100 million, SFL said in a release Aug. 14.
The contract is for one well plus one optional well and is expected to begin in second-quarter 2024. The duration for the firm contract period is about 200 days including transit to and from Canada. Odfjell Drilling Ltd. will manage the rig on behalf of SFL under the contract.
Equinor is operator of oil discoveries in the Flemish Pass offshore Newfoundland, including the Bay du Nord discovery, and work is ongoing to assess options for developing the project. Equinor operates Bay du Nord with 65% working interest.
Equinor earlier this year shelved its Bay du Nord deepwater oil project for 3 years “following changing market conditions and subsequent high cost-inflation.” At the time, the company said it will continue to assess exploration drilling around the field in 2024 (OGJ Online, June 15, 2023).
Hercules is currently drilling for ExxonMobil in Canada before it will transit to Namibia for a contract with Galp Energia expected to begin in fourth-quarter 2023.