Namibia's Deepwater Drilling Potential: A Focus for Northern Ocean
The Norwegian deepwater driller, Northern Ocean, is shifting its focus to Namibia, a move that could significantly impact the region's drilling landscape. With the recent sale of its harsh-environment semi-submersible rig, Deepsea Bollsta, to Odfjell Drilling for $480 million, Northern Ocean now has only one rig left in its fleet: the Deepsea Mira.
Despite the sale, Northern Ocean's share price has surged nearly 40% on the Oslo Stock Exchange since the announcement, indicating investor confidence in the company's strategy. The focus now turns to extending the backlog for the Deepsea Mira, particularly in Namibia, where the rig has been working on play-opening discoveries.
Arne Jacobsen, Northern's chief executive, emphasizes the company's plan to secure long-term contracts for the Deepsea Mira, especially in Namibia. The region is expected to see increased activity with the upcoming Venus development programme and other prospects. Jacobsen predicts that 2026 and beyond will be a significant year for drilling activity in Namibia.
The Deepsea Mira, like its sister rig, is a Moss Maritime CS-60E design, delivered in 2018 by Hyundai Heavy Industries. It boasts a DP3 dynamic positioning system, enabling operations in ultra-deep water. This technology and its successful track record in Namibia make the Deepsea Mira a key asset for Northern Ocean's future.
The sale of the Deepsea Bollsta allows Northern Ocean to refinance its balance sheet and improve capital efficiency, enabling the company to return capital to shareholders. This strategic move positions Northern Ocean to capitalize on the growing opportunities in Namibia, solidifying its position as a key player in the deepwater drilling sector.
