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Odfjell Drilling Signs Letters of Intent for Deepsea Atlantic

Odfjell Drilling Ltd. is pleased to announce the signing of two Letters of
Intent with a single client for the Deepsea Atlantic to conduct
operations in the north sea region. The LOI’s have a combined firm duration of
23 months and a value of approximately USD 290 million excluding integrated
services, upgrades/modifications or mobilisation fees. In addition to the base
value, the LOI’s include provisions for performance bonuses and fuel incentives.

Following the firm period, there are four priced one-well options. The
arrangement also provides for three further optional periods of approximately
one-year each with the rates for each period to be mutually agreed prior to

The LOI’s are contingent on license approval with one of the LOI’s also
contingent on governmental approval and formalisation of contract. The work will
begin consecutively following completion of the Special Periodic Survey,
currently planned during first half of 2024.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:

“In the year of our 50th anniversary these LOI’s are testament to Odfjell
Drilling’s experience and continued drive to innovate and remain at the
forefront of change in our industry. While providing valuable, continuous and
lengthy backlog these contracts are also a platform for us to take the next step
in terms of automation, digitalisation and carbon reduction together with our
valued client.”

“Over the last decade the Deepsea Atlantic has proven itself to be one of the
most efficient ‘well factories’ in the harsh environment segment. We intend to
build on this impressive track record and set a new efficiency benchmark for the
industry to chase.”

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