Deepwater drilling pickup continues, contractor claims

The ultra-deepwater drillship West Gemini
The ultra-deepwater drillship West Gemini
Seadrill

Offshore staff

HAMILTON, BermudaSeadrill’s contract backlog for its offshore drilling rig fleet stands at around $1.9 billion.

In its latest results statement, the contractor summarized its latest contract wins.

The AOD I secured a three-year follow on contract with Saudi Aramco which will keep the jackup employed until June 2022.

Equinor exercised two options for the semisubmersible West Hercules offshore Norway that should ensure the rig is employed until 1Q 2020.

The jackup West Telesto has a six-well firm plus two options contract offshore Malaysia.

Petronas awarded a one-well contract offshore Brunei for the ultra-deepwater drillship West Carina, which will likely take effect in direct continuation of the rig’s existing contract with the same company offshore Malaysia.

Finally, the ultra-deepwater drillship West Gemini will complete an additional well offshore Angola keeping the rig employed into June.

Seadrill added that contracts for eight newbuild jackups with Dalian Shipyard in China have now all been cancelled, and the company has no remaining newbuild commitments.

CEO Anton Dibowitz said: “We continue to see increased contracting activity in the deepwater market, in many instances with improved contract terms such as mobilization payments and certain capex being paid for by the customer.

“While the spot market for short-term work remains competitive, we are starting to see improvements in rates for longer-term work.”

05/23/2019

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