Northern Ocean Secured Shell Contract and Refinancing
The firm landed a $70 million drilling deal and launched a $71.5 million private placement to boost liquidity.
Updated on Oct. 4, 2026 in Oil and Gas
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Northern Ocean has entered a new contract with Shell for the Deepsea Mira rig, covering a drilling campaign in Trinidad and Tobago and the Caribbean. The company also initiated a $71.5 million private placement as part of a wider refinancing effort to strengthen its financial position.
Why it matters
The deal secures vital work for the Deepsea Mira following its period of idleness, while the new capital provides the necessary liquidity to maintain operations until the contract begins. This ensures the company remains stable during a period of transition in its fleet management.
The firm portion of the Shell contract covers 150 days, while the concurrent private placement is priced at NOK 6.50 per share. Additionally, the Sterna financing facility will be increased to $150 million and extended by two years.
The players
Northern Ocean
This is an international offshore drilling company headquartered in Oslo that specializes in operating harsh-environment rigs.
Shell
This is a global energy major involved in oil and gas exploration, production, and refining activities worldwide.
Hemen Holding
This is a private investment firm that holds a significant stake in Northern Ocean and provided precommitments for the recent funding round.
Odfjell Drilling
This is a specialized drilling and well services company that acquired the Deepsea Bollsta rig from Northern Ocean in 2025.
The details
The contract is scheduled to commence in April 2027, transitioning the Deepsea Mira from its current idleness in Walvis Bay to active drilling operations. Hemen Holding has already precommitted $60 million to the $71.5 million private placement, signaling strong support for the refinancing package.
Timeline
Northern Ocean sold the Deepsea Bollsta rig in 2025.
The firm reported delays in rig work opportunities in August 2026.
The Deepsea Mira rig is scheduled to begin work for Shell in April 2027.
Market Landscape
This move marks a departure from previous asset-heavy operations and reflects a broader industry trend of aggressive refinancing to survive cycles of rig idleness. By offloading older assets and securing long-term regional commitments, the firm positions itself against larger, more leveraged offshore competitors.
While the deal focuses on corporate refinancing, the move stabilizes the supply of rigs available for global energy exploration. This long-term planning aims to maintain the availability of drilling capacity for energy partners throughout the Caribbean region.
The takeaway
The company is successfully realigning its finances to bridge the gap between asset sales and future drilling revenue. Investors and industry stakeholders should monitor the deployment of the $150 million credit facility as the company nears its 2027 contract start date.
Further reading
For more on the industry, visit Oil and Gas.
Source note: This article includes information reported by Splash247.
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