Odfjell Drilling acquires Deepsea Bollsta rig for $480m

Odfjell Drilling Ltd. has announced the acquisition of the harsh environment semi-submersible drilling rig Deepsea Bollsta from Northern Ocean Ltd. for $480 million. The acquisition, fully financed through binding commitments from relationship banks, is expected to add $355 million in firm backlog for Odfjell Drilling, which has managed the rig since Q1 2022. The company plans to explore other financing options to optimize its capital structure.

The Deepsea Bollsta is currently on a firm contract with Equinor ASA until Q1 2028, with five additional one-year options. Kjetil Gjersdal, chief executive of Odfjell Drilling AS, highlighted the rig's proven operational excellence in Namibia and Norway, emphasizing its status as a highly capable unit in the harsh environment sector.

Gjersdal further commented that this all-cash transaction will scale the business, improve backlog coverage, and increase free cash flow visibility, aligning with Odfjell Drilling's strategy to be accretive to stakeholders from day one. The acquisition is subject to standard closing procedures and customary conditions.