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Equinor Taps Deepsea Aberdeen for Drilling Operations Offshore Norway
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Key Takeaways
Equinor awarded Odfjell Drilling a contract for the Deepsea Aberdeen to drill an interim scope on the NCS.
The deal is set to add about $373M to Odfjell Drilling's firm backlog, with work running from 4Q26 to 1Q29.
Deepsea Aberdeen is built for harsh conditions, featuring a dual derrick system and enhanced GVA7500 design.
Equinor ASA (EQNR - Free Report) , a Norwegian integrated energy company, has awarded a contract to Odfjell Drilling, an offshore drilling contractor, for its Deepsea Aberdeen drillship for work on the Norwegian Continental Shelf (“NCS”). Per the terms of the contract, Equinor will initially use the Deepsea Aberdeen to drill an undefined scope on the NCS during an interim period. Following the completion of this assignment, the rig will depart for the Fram Sør project, offshore Norway.
The contract follows a letter of intent signed by the two companies in November this year. The rig will begin its contract with Equinor in direct continuation of its existing agreement with the latter. Work on this contract is anticipated to start in the fourth quarter of 2026 and is expected to continue through the first quarter of 2029.
Odfjell Drilling has stated that the contract will add approximately $373 million to its firm order backlog, offering revenue visibility for the company. However, the firm order backlog does not include any revenues from integrated services or performance-oriented bonuses. Additionally, fuel incentives and yearly escalation are excluded from this amount, indicating that the contract may provide additional revenues if these components are included later.
The Deepsea Aberdeen semi-submersible rig was designed to operate in harsh weather conditions. The drillship boasts an enhanced GVA7500 design and can operate in water depths of 3,000 meters. The rig has an efficient drilling system, including a dual derrick that can carry out multiple operations simultaneously. Odfjell Drilling currently has three rigs from its fleet working with EQNR.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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Equinor Taps Deepsea Aberdeen for Drilling Operations Offshore Norway
Key Takeaways
Equinor ASA (EQNR - Free Report) , a Norwegian integrated energy company, has awarded a contract to Odfjell Drilling, an offshore drilling contractor, for its Deepsea Aberdeen drillship for work on the Norwegian Continental Shelf (“NCS”). Per the terms of the contract, Equinor will initially use the Deepsea Aberdeen to drill an undefined scope on the NCS during an interim period. Following the completion of this assignment, the rig will depart for the Fram Sør project, offshore Norway.
The contract follows a letter of intent signed by the two companies in November this year. The rig will begin its contract with Equinor in direct continuation of its existing agreement with the latter. Work on this contract is anticipated to start in the fourth quarter of 2026 and is expected to continue through the first quarter of 2029.
Odfjell Drilling has stated that the contract will add approximately $373 million to its firm order backlog, offering revenue visibility for the company. However, the firm order backlog does not include any revenues from integrated services or performance-oriented bonuses. Additionally, fuel incentives and yearly escalation are excluded from this amount, indicating that the contract may provide additional revenues if these components are included later.
The Deepsea Aberdeen semi-submersible rig was designed to operate in harsh weather conditions. The drillship boasts an enhanced GVA7500 design and can operate in water depths of 3,000 meters. The rig has an efficient drilling system, including a dual derrick that can carry out multiple operations simultaneously. Odfjell Drilling currently has three rigs from its fleet working with EQNR.
EQNR’s Zacks Rank and Key Picks
SHEL currently has a Zacks Rank #5 (Strong Sell).
Some top-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.