Fred. Olsen Energy: Extension for Bideford Dolphin

Follow up to prior analysis

After writing my previous analysis, it only took one day for FOE to win a contract. Dolphin Drilling AS, a subsidiary of FOE, has entered into a one well contract extension with STL for use of the semi-submersible drilling rig Bideford Dolphin for operation on the NCS, with commencement in direct continuation of the current contract. STL’s contract for Bideford Dolphin was suppose to expire straight after new years, but now continues immediately on the new well for around 1 month. The one-well program is estimated to take 35 days and the estimated contract value is approximately USD 6.1 million (~174k). Considering the small size of the contract, the contract is not highly relevant for FOE’s valuation, but indicates signs that STL might be preparing for a longer contract.

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