Page 49: of Offshore Engineer Magazine (Mar/Apr 2023)

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Rystad Energy recently said that the offshore oil and gas sector was set for the highest growth in a decade in the next two years, with $214 billion of new project investments lined up, and annual greenfeld capital expenditure (capex)

THE WAIT IS OVER: set to break the $100 billion threshold in 2023 and 2024 – the frst breach for two straight years since 2012 and 2013!

While the words of Transocean and Rystad resonate through the industry, this article is about a recent drillship contract secured by a little-known company: Oslo-listed

Deep Value Driller Ready to

Deep Value Driller AS and its 7th-generation drillship.

THE DRILLSHIP

The ultra-deepwater drillship, bearing its current name, might be known to few in the oil industry; however, the

Unleash Its Potential rig's previous name – the Bolette Dolphin – could be more familiar. The rig, which has a maximum operating depth of 3,048 meters, and a maximum drilling depth of 12,192 meters was initially owned by then Fred. Olsen Energy’s subsidiary Dolphin Drilling.

Delivered in February 2014 by Hyundai Heavy Indus- tries, it had spent years working for (also then) Anadar- ko Petroleum before the contract was terminated in July 2017, and it hasn't worked since.

Come 2019, Dolphin Drilling lenders decided to sell the Bolette Dolphin to refocus Dolphin Drilling's business on the mid-water feet.

However, the sale only occurred two years later, when in the early 2021, Deep Value Driller said it had scooped the rig for only $65 million. The price represented ~9% of the rig construction cost of around $750 million.

Deep Value Driller's strategy is written on its website's homepage: “Invest in high quality drilling vessels and bareboat to reputable drilling contractors, with the ambition to create value to our shareholders and customers.“

BAREBOAT CHARTER

The offshore drilling industry is back.

On February 23, 2022, Deep Value Driller said it had

After several years of downturn and uncertainty, offshore drilling analysts and rig owners alike are now painting an secured a bareboat charter for the drillship with the Italian offshore services frm Saipem. The contract, for approxi- optimistic picture for the future, with rig demand, utiliza- mately three years, is worth around $160 million.

tion, and dayrates growing across the board.

While Deep Value Driller AS did not say how many days “As an industry, it is clear that we have fnally emerged from eight exceptionally challenging years and are now in exactly the rig would be on a contract with Saipem (ie. “ap- proximately three years”), if we assume that the contract is the early stages of what we believe will be a multi-year up- for three years exactly, this means that the dayrate for this cycle,“ said Transocean CEO Jeremy Thigpen in the com- 7th generation rig would be around $145,985.

pany's recent quarterly presentation.

MARCH/APRIL 2023 OFFSHORE ENGINEER 49