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Home / Energy & Power / Odfjell Drilling secures USD 518 million LOA from Vår Energi for Deepsea Bergen rig

Odfjell Drilling secures USD 518 million LOA from Vår Energi for Deepsea Bergen rig

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Odfjell Drilling secures USD 518 million LOA from Vår Energi for Deepsea Bergen rig
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Odfjell Drilling has received a Letter of Award valued at approximately USD 518 million from Vår Energi for the semi-submersible rig Deepsea Bergen. Commencing in early 2028, the three-year agreement extends the vessel's firm operational backlog on the Norwegian Continental Shelf into early 2031.

NORWAY —Offshore drilling contractor Odfjell Drilling Ltd. has received a Letter of Award from Norwegian exploration and production operator Vår Energi ASA for the semi-submersible rig Deepsea Bergen. The agreement covers a firm three-year charter period scheduled to begin in early 2028, directly following the conclusion of the rig's existing operational commitments. The contract carries an estimated firm backlog value of USD 518 million, which includes mobilization fees but excludes potential annual rate escalations, integrated services, fuel performance incentives, and operational bonuses.

Odfjell Drilling Ltd. is a offshore drilling contractor operating harsh-environment semi-submersibles and drillships across international oil and gas basins. Vår Energi ASA is an independent upstream oil and gas enterprise operating on the Norwegian Continental Shelf, focused on offshore exploration, field development, and hydrocarbon production.

The long-term charter secures continuous utilization for the Deepsea Bergen through the first quarter of 2031, validating Odfjell Drilling's strategic acquisition of the unit less than a year prior. By locking in a multi-year deployment well in advance of the 2028 start date, both operator and contractor reduce rig availability exposure in a tightening harsh-environment offshore market. The multi-year commitment enables joint planning around operational efficiency, safety protocols, and emissions reduction investments for long-term drilling campaigns.

This contract allocation underscores sustained demand and firm dayrates for high-specification floating rigs operating in Northern Europe. For offshore oil and gas operators, securing deepwater and harsh-environment assets several years ahead of execution highlights growing market competition for premium drilling units. The agreement reinforces stability across the offshore energy supply chain, benefiting specialized maritime service providers, equipment suppliers, and subsea engineering contractors operating in the North Sea region.

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