Northern Ocean Sees Deepsea Mira Idle Until at Least Early 2027
Opportunities targeted for the second half of 2026 fell away or slipped, leaving one rig and no backlog
Northern Ocean expects its sole remaining semisubmersible to stay idle into the first quarter of 2027 after several drilling opportunities targeted for this year either fell away or were pushed back.
The John Fredriksen-backed rig owner said Deepsea Mira remains in Walvis Bay, Namibia, and has now been without work for close to two months following the completion of its latest campaign for Shell. The company is marketing the rig against several opportunities with potential 2027 start dates.
That outlook is a marked shift from early July. After the Shell job ended on 2 July, the Oslo-listed company said prevailing demand left the rig well positioned to secure further work during the second half of 2026. Several of those opportunities have since failed to materialise, while other programmes have been delayed.
The 2018-built rig started the one-well Shell campaign offshore Namibia on 4 April. The job had originally been expected to last about 45 days and carried projected backlog of around $16m, but ultimately ran for almost three months and generated roughly $31m of second-quarter revenue. Shell did not take up an option for a second well.
Following the campaign, the rig returned to Walvis Bay for a 30-day upgrade of its drilling control system. Northern Ocean said the work brought its drilling controls up to the same level as sister rig Deepsea Bollsta, with the upgraded system increasingly required in long-term tenders from major operators.
The gap in employment comes at a sensitive time. The company shrank to a one-rig business late last year when Odfjell Drilling acquired Deepsea Bollsta for $480m, with the sale closing in December, leaving Deepsea Mira as its only drilling asset.
Northern Ocean said it has reduced operating costs to preserve cash while waiting for the next campaign and has started refinancing its debt. It carried $132.8m of borrowings at the end of June, including $7.8m of capitalised PIK interest, and customer payments have since brought that down to $112.8m, comprising $107.8m under its term loan and $5m drawn under a revolving credit facility. Cash and cash equivalents stood at $19.7m at the end of June.
The company warned in its accounts that the absence of long-term backlog leaves its financial position dependent on securing more work, and that without new contracts, loan amendments, additional financing or fresh equity its position would come under strain. Rig owners elsewhere have reported similar pressure as day rates soften, but few carry the concentration risk of a single offshore unit with an empty order book.
