Northern Offshore Ltd. (Oslo Bors: NOF.OL) has executed a letter of intent with CAMAC International Ltd., an affiliate of CAMAC Energy Inc. (NYSE MKT: CAK), for the drillship Energy Searcher. The letter of intent provides for a subsidiary of Northern Offshore to work toward executing a definitive drilling contract on or before Dec. 31.
The letter of intent commits to an initial contract period of one year, with an option to extend the contact for an additional one-year term. Commencement of drilling activities on the Oyo field offshore Nigeria is expected during the first half of 2014. The contract value for the first one-year term is approximately US$100 million, excluding mobilization fees.