Northern Ocean Ltd. has signed a strategic alliance agreement in Ghana and a contract with the Springfield Group of Companies for the use of the Deepsea Bollsta on a well test of the Afina-1x well, among other activities.

In a statement, NOL said the strategic alliance includes mutual exclusivity to explore a long-term field development program in Ghana. The firm contract duration is for one well test, estimated to be 30-35 days, and will commence early in the fourth quarter of this year.

The Ghana program will precede the contract with a subsidiary of a major operator, which was announced on 26 July 2024. The agreed clean day rate is $440,000, excluding mobilization and demobilization.

With this new contract award for Deepsea Bollsta, the company has an estimated aggregate revenue backlog of between $85 million and $105 million, excluding bonuses, reimbursables, and undeclared options.

Arne Jacobsen, Chief Executive Officer of NOL, commented: “We are excited to announce this strategic alliance agreement with Springfield, which is an important step in the company’s plan to build a solid order backlog. In addition, this alliance creates the foundation for NOL and Springfield to build a long-term relationship in Ghana, where Springfield is an important operator.”

“The short-term work, in advance of the already announced drilling contract, proves that it is possible to backfill idle periods in direct discussions with oil companies. Although it is short-term work, it brings the Deepsea Bollsta back into operation earlier than anticipated, and NOL adds an important oil company in West Africa to its list of clients. This demonstrates that NOL’s superior assets, combined with Odfjell Drilling’s operation, offer a very attractive solution for our clients.”

Kevin Okyere, Chief Executive Officer of Springfield, commented: “The appraisal of Afina-1x through a well test helps finalize the unitization between Springfield, ENI, and Vitol, and will bring significant value to the government of Ghana and all stakeholders involved in this unitization.

“Together with GNPC and GNPC Explorco, our partners, we are really excited to be working with NOL in this historic drilling campaign as the first independent African company to operate in deep waters. The success of this campaign will result in us being the first independent African producer in deep waters as well. NOL’s impressive track record, efficiency, and expertise make them an ideal partner for Springfield, as together we have managed to plan and will execute this drilling campaign in a safe and efficient manner. Together, in our partnership, we look forward to building a mutually beneficial long-term relationship that brings significant value to all our stakeholders.”

Both parties are committed to using the exclusivity period, which lasts until 1 January 2025, to enter into a firm agreement for long-term field development drilling starting in mid-2025.