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

Fleet Consolidation and Strategic Focus

The company has agreed to sell its harsh-environment semi-submersible, the Deepsea Bollsta, to compatriot Odfjell Drilling for $480 million. This transaction leaves Northern Ocean with a single rig in its fleet, the sister rig Deepsea Mira. Both rigs have been instrumental in recent, successful play-opening discoveries offshore Namibia. The market responded positively to the sale, with Northern's share price trading nearly 40% higher on the Oslo Stock Exchange following the announcement.

Building Backlog for the Deepsea Mira

The primary objective for the company is now to build a substantial backlog of work for the Deepsea Mira. The rig is currently operating in Namibia, which is identified as the key region for securing future contracts. There is a specific focus on pursuing a long-term contract for the rig, with the expectation that significant tender opportunities will emerge. The Venus development programme is highlighted as a major upcoming opportunity, alongside other prospects in the region. Company leadership anticipates that 2026 and into 2027 will be a period of high activity in Namibia. The Deepsea Mira has recent operational experience in the country, having worked for clients such as Rhino Resources and BW Energy.

Rig Specifications and Capital Strategy

The Deepsea Mira is a Moss Maritime CS-60E design, delivered in 2018 by Hyundai Heavy Industries. It is equipped with a DP3 dynamic positioning system and possesses the capability to operate in ultra-deep water. Financially, the completion of the Deepsea Bollsta sale is intended to facilitate a refinancing of the company's balance sheet and improve capital efficiency. A key outcome of this improved financial position will be the initiation of capital returns to shareholders.