Seadrill clinches multiple contract extensions

Offshore driller Seadrill has bagged multiple contract extensions for its drilling units, according to its latest fleet status report.

The New York- and Oslo-listed firm has secured multi-well contract extensions against existing agreements for two drillships, the 2019-built Sonangol Quenguela and the 2010-built West Gemini, operating for TotalEnergies in Angola through its 50:50 joint venture with Sonangol.

The exercised options will start in direct continuation of the rigs’ existing contracts in December 2023 and November 2024, committing the Quenguela through January 2025 and the West Gemini through May 2025 at 310,500 per day and 404,800 per day, respectively. The units will earn until then 214,500 and 284,800 per day, respectively.

In Qatar, Gulfdrill, a joint venture between Seadrill and Gulf Drilling International, has secured a contract extension for the 2013-built jackup rig West Tucana. The extension will be a direct continuation of the existing term and is expected to continue until the third quarter of 2025 at an undisclosed dayrate. The jackup is one of the three owned by Seadrill and bareboat chartered to Gulfdrill. In June, Seadrill said it had been looking to offload the trio and an equity interest in its Qatari joint venture.

In addition, the operator of the 2008-built drillship West Capella has exercised a one-well option, extending its operations by approximately two months until November 2024. Dayrates and the operator for this deal have not been disclosed. 

Seadrill reported a profit of $94m for the second quarter of 2023 on $414m of revenue. The company’s order backlog stood at $2.4bn as of August 15.

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