Northern Ocean expects its Deepsea Mira semisubmersible drilling rig to remain idle into the first quarter of 2027 after several 2026 contract opportunities did not materialise and other drilling programmes were delayed.
The rig is in Walvis Bay, Namibia, after completing its latest campaign for Shell on 2 July 2026. Northern Ocean is currently marketing Deepsea Mira for several opportunities that could start in 2027.
The latest outlook differs from the company’s position in early July. After the Shell campaign ended, Northern Ocean said prevailing demand left the rig well placed to secure further work during the second half of 2026. Since then, some opportunities have not progressed, while other programmes have been postponed.
Deepsea Mira began a one-well campaign for Shell offshore Namibia on 4 April 2026. The work was initially expected to last about 45 days and carried projected backlog of around $16 million. The campaign ultimately continued for almost three months and generated roughly $31 million of second-quarter revenue. Shell did not exercise an option for a second well.
Following the campaign, Deepsea Mira returned to Walvis Bay for a 30-day upgrade of its drilling control system. Northern Ocean said the work brought the system to the same level as that on Deepsea Bollsta. The company also said upgraded drilling controls are increasingly required in long-term tenders from major operators.
Deepsea Mira is now Northern Ocean’s only drilling asset after Odfjell Drilling acquired Deepsea Bollsta for $480 million, with the transaction completed in December.
With its remaining rig idle, Northern Ocean has reduced operating costs to preserve cash and has begun refinancing its debt. Borrowings stood at $132.8 million at the end of June, including $7.8 million of capitalised PIK interest. Customer payments later reduced borrowings to $112.8 million, comprising $107.8 million under its term loan and $5 million drawn under a revolving credit facility.
Cash and cash equivalents were $19.7 million at the end of June. Northern Ocean said its financial position depends on securing additional work because it does not have long-term backlog. Without new contracts, the company said loan amendments, additional financing or new equity could be required to meet its obligations over the following 12 months.
For the second quarter, Northern Ocean reported revenue of $33.9 million and a net loss of $2.5 million, compared with a $23.1 million loss in the first quarter. Economic utilisation reached 98.6%.
Separately, Hemen Holding increased its ownership in Northern Ocean above 50% in July and launched a mandatory offer at NOK7.50 ($0.80) per share. The offer remains open until 9 September. Independent expert SB1 Markets concluded that the offer was not fair from a financial point of view to Northern Ocean shareholders.
