Following the sale of one of its two rigs, Norwegian deepwater driller Northern Ocean is shifting its strategic focus towards securing a long-term contract backlog for its remaining asset, the Deepsea Mira, while also planning to return capital to its shareholders.

Fleet Restructuring and Strategic Focus

Northern Ocean has agreed to sell its harsh-environment semi-submersible, the Deepsea Bollsta, to compatriot Odfjell Drilling for $480 million. This transaction leaves the Deepsea Mira as the sole rig in its fleet. The company has explicitly stated there is no intent to divest the Deepsea Mira, confirming it as the central asset for future operations. The sale was characterized as the right strategic move for both companies involved.

Primary Objective: Building Backlog for Deepsea Mira

The company's primary plan is to focus on building a backlog of work for the Deepsea Mira, with a particular emphasis on the offshore Namibia region where the rig is currently operational. The goal is to secure a long-term contract for the rig, with the expectation that significant opportunities will emerge in Namibia. The Venus development programme is specifically highlighted as a major upcoming tender, with other prospects also identified. Company leadership anticipates that 2026 and into 2027 will be a period of substantial activity in Namibia.

Rig Specifications and Recent Work

The Deepsea Mira is a Moss Maritime CS-60E design harsh-environment semi-submersible, delivered in 2018 by Hyundai Heavy Industries. It is equipped with a DP3 dynamic positioning system and is capable of operating in ultra-deep water. In recent months, the rig has been working for Rhino Resources and BW Energy offshore Namibia, a region where both the Mira and the recently sold Deepsea Bollsta have been involved in successful, play-opening discoveries.

Financial Implications and Shareholder Returns

The completion of the Deepsea Bollsta sale is expected to allow Northern Ocean to refinance its balance sheet and improve its capital efficiency. A key outcome of this improved financial position will be the initiation of capital returns to the company's shareholders. The market has reacted positively to the sale announcement, with Northern Ocean's share price trading nearly 40% higher on the Oslo Stock Exchange following the news.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Russell Searancke. All rights to the original text and images remain with their respective rights holders.