Odfjell Drilling has signed an agreement for the acquisition of the harsh environment semi-submersible drilling rig Deepsea Bollsta from Northern Ocean for a total consideration of $480 million, marking a significant expansion of the company’s owned fleet.
The strategic acquisition is estimated to add $355 million in firm backlog to Odfjell Drilling’s portfolio. Deepsea Bollsta, which has been managed by Odfjell Drilling since the first quarter of 2022, is currently on firm contract with Equinor until the first quarter of 2028, with five additional one-year options that could extend the contract further.
Odfjell Drilling has received binding commitments from its relationship banks to fully finance the acquisition, though the company indicated it will also explore other credit financing sources to optimize its long-term capital structure. The acquisition will follow standard closing procedures and has conditions customary for this type of transaction.
Chief Executive Officer Kjetil Gjersdal expressed enthusiasm about the acquisition, noting that having managed and operated the Deepsea Bollsta for over three years, the company has seen first-hand the potential of the rig and her crew. “Having drilled successfully in both Namibia and Norway in recent years, Deepsea Bollsta has impressed us and its clients through good, predictable operations and efficiency and is recognized as one of the most capable units in the harsh environment sector,” Gjersdal said.
He added that this fully financed all-cash transaction adds scale, strong backlog coverage and increased free cash flow visibility to the business, meeting the company’s strategy of being accretive to stakeholders from day one. “This is an exciting moment for us, and we look forward to welcoming Deepsea Bollsta to the Odfjell Drilling owned fleet very soon,” he stated.
Source: namibiaoilandgas.com