Odfjell Drilling Ltd has agreed to acquire the Deepsea Bollsta semi-submersible rig from Northern Ocean Ltd for US$480 million (about N$ 8.22 billion), as part of its strategy to expand its owned fleet and strengthen contract backlog.
The rig has been managed by Odfjell Drilling since early 2022 and is currently under contract with Equinor ASA until the first quarter of 2028, with five additional one-year extension options.
Chief Executive Officer Kjetil Gjersdal said the unit has proven its capability in demanding offshore environments.
“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 recognised as one of the most capable units in the harsh-environment sector,” he said.
The acquisition is expected to add US$ 355 million (approximately N$ 6.07 billion) in firm backlog, which the company said strengthens its long-term earnings visibility.
Odfjell Drilling confirmed that binding commitments have been secured from its relationship banks to fully fund the deal, though it will also assess additional credit options to optimise its capital structure.
“This fully financed all-cash transaction adds scale, strong backlog coverage and increased free cash-flow visibility to our business and meets our strategy of being accretive to stakeholders from day one,” Gjersdal added.
The company said standard transaction closing conditions apply and expects a smooth transition due to its experience managing the rig over more than three years.
“We look forward to welcoming Deepsea Bollsta to the Odfjell Drilling owned fleet very soon,” he said.
Operational continuity is expected to be maintained throughout the integration process, given the existing oversight and management framework in place.
