Seadrill secures contracts for multiple jackup units

Seadrill Ltd. has secured new contracts for the jackup units West Tucana, West Telesto, West Ariel, and West Prospero. Additionally, the contract for the West Mischief has been extended four months.

Offshore staff

HAMILTON, BermudaSeadrill Ltd. has secured new contracts for the jackup units West Tucana, West Telesto, West Ariel, and West Prospero. Additionally, the contract for the West Mischief has been extended four months. The total revenue potential for the four new contracts and one extension is $319 million.

TheWest Tucana, a Friede & Goldman JU-2000E jackup drilling rig, has a contract offshore Angola with Cabinda Gulf Oil Company Ltd., Chevron's wholly owned operating unit in Angola. The contract is for a firm period of 24 months. The total revenue potential for the primary contract term is $168 million inclusive of $8.5 million of mobilization. The West Tucana is operating in Vietnam and will likely be available to begin its charter in late November.

TheWest Telesto, also a Friede & Goldman JU-2000E jackup, has secured a contract offshore Australia with Origin Energy Ltd. The contract is for a firm period of two wells, expected to be 51 days each, plus two option wells. The total revenue potential for the primary contract term is $31 million inclusive of mobilization. The West Telesto is operating in Vietnam and will likely be available to begin its charter in 4Q 2014.

TheWest Ariel, a Keppel FELS B Class jackup rig, has secured a contract offshore Congo with ENI Congo SA. The contract is for a firm period of 12 months plus an option of 12 months. The total revenue potential for the primary contract term is $89 million inclusive of $8.5 million of mobilization. The West Ariel is operating in Vietnam and will likely be available to begin its charter in late April or early May.

In addition, Eni Congo has extended the charter of the LeTourneau Super 116-E jackup rigWest Mischief for four months at an increased day rate. This extension not only represents an additional $24 million to the total value of the contract but also demonstrates the strong working relationship between the two companies, said Seadrill.

TheWest Prospero, a Keppel FELS B Class jackup rig, has secured a contract offshore Vietnam with JVPC. The contract is for a firm period of one well, expected to be 40 days. The total revenue potential for the primary contract term is $6.5 million. The West Prospero is operating in Vietnam and will likely be available to begin its charter this month following the completion of its current contract.

Following these fixtures, Seadrill has 92% of its jackup capacity contracted for 2014 and 64% for 2015. The total order backlog for the jackup fleet is $4.4 billion and average remaining contract duration is 2.6 years.

04/02/2014

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