Northern Ocean expects its sole remaining semisubmersible to remain 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 the 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. Northern Ocean is marketing the rig against several opportunities with potential 2027 start dates.

The outlook marks a significant shift from early July. After the Shell job ended on July 2, 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 began the one-well Shell campaign offshore Namibia on April 4. 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. Namibia's Orange Basin has attracted substantial industry attention since major discoveries by TotalEnergies and Shell in recent years, drawing a wave of exploration drilling and rig demand to the region, making the pace of follow-up drilling programmes a key variable for rig owners positioned there.

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 for Northern Ocean, which shrank to a one-rig company late last year. As previously reported by Splash, Odfjell Drilling acquired the Deepsea Bollsta for $480m, with the sale closing in December. The Deepsea Mira is now Northern Ocean's only drilling asset, meaning the company's revenue is fully dependent on a single unit's contracting fortunes.

Northern Ocean said it has reduced operating costs to preserve cash while waiting for the next campaign and has started refinancing its debt. The company had $132.8m of borrowings at the end of June, including $7.8m of capitalised PIK interest. Customer payments have since brought borrowings down to $112.8m, comprising $107.8m under its term loan and $5m drawn under a revolving credit facility.

The company held $19.7m of cash and cash equivalents at the end of June. It warned in its accounts that the absence of long-term backlog means its financial position is dependent on securing more work, and that without new contracts, loan amendments, additional financing or fresh equity could be required to meet obligations over the next 12 months.

Northern Ocean reported a second-quarter net loss of $2.5m, narrowing sharply from $23.1m in the first quarter, as revenue rose to $33.9m on the back of the Shell campaign. Economic utilisation reached 98.6%.

The contract hunt is also playing out against another push by Fredriksen's Hemen Holding to consolidate its position in the company. After crossing the 50% ownership threshold in July, Hemen launched a mandatory offer at NOK7.50 ($0.80) per share, open until September 9. Independent expert SB1 Markets has since concluded that the offer is not fair from a financial point of view to Northern Ocean shareholders. The outcome of that offer, alongside any new contract for the Deepsea Mira, will shape how the one-rig company navigates the wait until potential 2027 start dates.