Offshore drilling contractor Transocean has secured a new contract extension for a semi-submersible rig working on the Norwegian Continental Shelf (NCS).
Transocean revealed on Wednesday, 5 July 2023, that six one-well options were exercised for the Transocean Encourage rig in Norway. The estimated 370 days of work, expected to start in direct continuation of the current firm term, will contribute approximately $172 million in backlog. This is expected to keep the rig busy through February 2026.
Transocean’s fleet status report from April 2023 shows that the rig’s current day rate with Equinor, which started in March 2023, is $405,000. The day rate is due to change in November 2023 to $350,000, which is slated to last until February 2025. As a reminder, Equinor extended multiple contracts in May 2022, including the one with Halliburton for work on the Transocean Encourage rig.
The rig is currently on an eight-year contract with Equinor while a new nine-well contract with the Norwegian state-owned energy giant is expected to start in November 2023. The rig’s new drilling programme in the Norwegian Sea entails spinning the drill bit on the Tyrihans , Verdande , Andvare , and Vigdis fields, with Verdande and Andvare expected to be tied into the Norne field . This drilling programme has now been further extended with six more wells.
Transocean Encourage is a harsh-environment semi-submersible rig of GVA 4000 NCS design. The 2016-built rig can accommodate up to 130 people. Originally, it received the Acknowledgement of Compliance (AoC) from the PSA in 2016 when it was called Songa Encourage. Following a change in rig ownership, Transocean applied for a new AoC and changed the name of the rig to Transocean Encourage. The new AoC was received in June 2019.