NODL: WEST BOLLSTA AWARDED DRILLING CONTRACT BY LUNDIN NORWAY
February 28, 2019 – Hamilton, Bermuda
Northern Drilling Ltd (the “Company” or “Northern Drilling”) is pleased to announce its harsh environment rig West Bollsta has secured a contract for a ten-well program with Lundin Norway AS (“Lundin Norway”). The drilling program includes the development of the Luno II field and the Rolvsnes discovery in the Norwegian North Sea with contract commencement expected in Q2 2020. The Rolvsnes discovery and Luno II development remain subject to Lundin Norway’s fulfilment of certain conditions customary to finalizing the drilling program in Norway and expected to be lifted by Q3 2019.
Lundin Norway is a fully integrated, oil and gas exploration and production company with all its operations on the Norwegian Continental Shelf. Northern Drilling continues to expand its presence in the North Sea and adds to its backlog a contract valued at approximately USD 200 million, excluding performance bonus and any additional services.
The Lundin Norway contract includes four additional one-well options. Should all options be exercised, West Bollsta is expected to be contracted to Lundin Norway until Q3 2022. The day rates for the optional period will be based on a market indexed rate which enables the Company to benefit from the tightening harsh environment market.
The contract has been executed between Lundin Norway and Seadrill Norway Operations Ltd. a subsidiary of Seadrill Limited. Northern Drilling has also entered into a Heads of Agreement with Seadrill subsidiaries to mobilize and manage the operations of West Bollsta for this contract. The operating agreement will cover customary scope for commercial and technical services providing safe and reliable operations from delivery of West Bollsta expected in Q2 2019 through the contract duration.
Additional information about the Company can be found at: https://www.northerndrillingltd.com
Forward Looking Statements
Matters discussed in this release may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, sometimes identified by the words “believes”, “expects”, “intends”, “plans”, “estimates” and similar expressions. The forward-looking statements contained in this release, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that that the assumptions underlying such forward-looking statements are free from errors, nor does the Company accept any responsibility for the future accuracy of the opinions expressed in the presentation or the actual occurrence of the forecasted developments. No obligations are assumed to update any forward-looking statements or to conform to these forward-looking statements to actual results.