Deepsea Bergen Secured Through 2031 in Odfjell–Vår Energi Deal

Odfjell Drilling has formally signed a drilling contract with Vår Energi for the semi-submersible rig Deepsea Bergen, confirming a letter of award announced in September 2026. The contract covers a firm three-year period starting in early 2028, followed by four one-year priced options. The rig is now fully booked until early 2031, with options that could keep it working into early 2035.

 

From Letter of Award to Contract

 

Odfjell first announced the letter of award from Vår Energi on 10 September 2026. A letter of award is a preliminary commitment, and the formal contract confirms the deal on binding terms. At the time, Odfjell estimated the firm backlog at about US$518 million. That figure includes mobilization fees but excludes annual escalation, integrated services, performance bonuses and fuel incentives.

The work will begin in early 2028, once Deepsea Bergen completes its current contract. After the three-year firm period, Vår Energi holds four one-year priced options. If all options are exercised, the rig would remain under contract with Vår Energi into early 2035. Priced options give the operator flexibility while giving Odfjell visibility on potential future earnings.

 

The Rig

 

Deepsea Bergen is a 2019-built harsh-environment semi-submersible built to the CS60 E design, previously known as Deepsea Bollsta. Odfjell managed the rig from 2022 and bought it from Northern Ocean in December 2025 for US$480 million, renaming it Deepsea Bergen. The rig is moored rather than dynamically positioned and is designed for water depths of about 70 to 500 meters. It has a winterization notation for Arctic conditions and has drilled in the Barents Sea during winter.

The rig is currently working for Equinor on the Norwegian Continental Shelf under a contract that runs until early 2028. In 2026, it drilled the Grimsnes exploration well near the Oseberg field for Equinor and its partners, resulting in an oil and gas discovery. The rig also features emissions-reducing power systems with selective catalytic reduction. These features suit Norwegian operators, which face strict environmental standards.

 

Odfjell’s Perspective

 

When the letter of award was announced, Odfjell Drilling Chief Executive Kjetil Gjersdal said the company values close, long-term client relationships. He said the terms allow both Vår Energi and Odfjell to invest in a long-term partnership that supports safe and efficient drilling. Gjersdal also highlighted that the award came less than 12 months after Odfjell acquired the rig. He said Deepsea Bergen had shown it could deliver world-class operational performance.

In its third-quarter results, Odfjell said the Vår Energi contract provides long-term visibility and reflects strong demand for its rigs. Gjersdal said the company expects the market for harsh-environment rigs to keep tightening. Odfjell reported a firm order backlog of US$2.5 billion at the end of September. Recent awards include a one-year extension for Deepsea Nordkapp with Aker BP and options exercised by Equinor for Deepsea Atlantic.

 

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Vår Energi’s Drilling Plans

 

Vår Energi is one of Norway’s largest oil and gas producers, formed in 2018 through the merger of Eni Norway and Point Resources. The company has an active program of exploration and field development on the Norwegian Continental Shelf. Securing a high-specification rig years in advance protects it against tight rig supply later in the decade. Long-term contracts also give operators more certainty on drilling costs.

Norwegian operators are investing to sustain production as mature fields decline, often through tie-backs and near-field exploration. That approach relies on reliable access to capable rigs for drilling and development wells. Harsh-environment semi-submersibles are a limited fleet, with few new units being built. As a result, operators are increasingly committing early to secure rigs for the late 2020s and early 2030s.

 

Market Significance

 

The contract highlights the strength of Norway's harsh-environment drilling market. With limited newbuild supply and steady demand, rig owners are securing long contracts at firm rates. For Odfjell, the deal justifies its purchase of Deepsea Bergen, turning a newly acquired asset into a source of long-term income. The value of the firm backlog alone covers a large share of the rig’s purchase price.

Long contracts with priced options are becoming a common feature of the Norwegian market. They give rig owners the stability to invest in upgrades and crews, while operators secure capacity. If the market tightens as Odfjell expects, rig owners with available units could command higher rates in the future. For now, Deepsea Bergen’s employment is secured well into the next decade.