Seadrill Gains $100 Million from Drillship Pair Contracts

Seadrill, an offshore drilling contractor, has recently secured two significant contracts totaling approximately $97.5 million for its drillships.

The company, headquartered in Houston, received a contract for the drillship West Vela from Talos Energy. This contract, set to commence in the third quarter of 2024 in the US Gulf of Mexico, is estimated to last 150 days and is valued at roughly $73.5 million. This valuation does not include managed pressure drilling services.

Previously, in November of the preceding year, the West Vela, constructed in 2013, was engaged by QuarterNorth Energy for operations spanning from June to August 2024, also situated in the US Gulf. The commencement of this contract is scheduled to follow the drillship's completion of its current assignment with Beacon Offshore, after which it will transition from Diamond Offshore's management to Seadrill's.

Additionally, the West Capella drillship, under the management of a third-party, Vantage, has had its contract extended. The operator, whose identity remains undisclosed, has chosen to exercise a one-well option, extending the drillship's operations in Indonesia by roughly two months. This extension directly follows the rig's ongoing program and is valued at approximately $24 million.

Regarding the West Auriga, Diamond Offshore, its current manager, has informed Seadrill of the rig's release in February 2024. This is due to alterations in their client's drilling schedule. Consequently, Seadrill will reassume management of the West Auriga in the first quarter of 2024. This transition is strategically timed to facilitate preparations for its forthcoming contract with Petrobras in Brazil, set to begin in the latter half of 2024.