Saipem firms up drillship option at Deep Value Driller
Italian engineering giant Saipem has officially amended its bareboat charter agreement with Norwegian rig owner Deep Value Driller for the drillship of the same name. The contract, which will commence on July 1, 2023, is set for a duration of 365 days, with options for a one-year extension available within the first six months. This strategic move is expected to generate between $54 million and $55 million for Deep Value Driller, contingent on the absence of idle time or reduced rates.
Details of the Charter Agreement
Saipem’s decision to amend the charter agreement comes after it was granted an option to do so in March. Alongside the charter amendment, Saipem also secured the option to purchase the seventh-generation drillship. If Saipem exercises this purchase option within 180 days of the initial charter period, the company will pay $300 million for the vessel, in addition to the remaining hire fees. This agreement underscores Saipem’s commitment to enhancing its offshore drilling capabilities while also providing a significant financial boost to Deep Value Driller.
The Deep Value Driller, built in 2014, is a state-of-the-art drilling unit designed for deepwater operations. Its advanced technology and capabilities make it a valuable asset in the competitive offshore drilling market. The successful execution of this charter agreement not only highlights Saipem’s strategic planning but also reflects the ongoing demand for high-quality drilling services in the energy sector.
As the offshore industry continues to evolve, partnerships like this one between Saipem and Deep Value Driller are crucial for meeting the growing energy needs while navigating the complexities of the market. The financial implications of this deal are significant, and both companies are poised to benefit from the arrangement in the coming year.
