Maersk Drilling, Aker BP ink $1 billion drilling contract

(Bloomberg) --Maersk Drilling extended a drilling agreement with Aker BP ASA in a $1 billion five-year contract, securing a major revenue source.

The agreement grants Norwegian oil operator Aker BP the use of two rigs, the companies jointly announced Saturday. The two Maersk rigs -- Maersk Integrator and Maersk Invincible -- will be used for activities offshore Norway during the period.

“We are absolutely delighted to re-affirm our commitment to Aker BP for another five years and to secure major scope additions during these five years,” said Maersk Drilling CEO Jørn Madsen in a statement.

Denmark’s Maersk Drilling increased its profit guidance for 2021 based on “solid” rig performance and contract extensions in the latest quarterly report. It will report annual results in February of next year.

Maersk reported revenue of about $1 billion in 2020 and posted losses for four of the past five years.

Aker BP is a joint venture of BP Plc and Aker ASA.