Seadrill Limited has entered into a joint venture with Gulf Drilling International (GDI) following a recent contract award to GDI by Qatar Petroleum.
Last May, Qatar Petroleum awarded contracts for a total of eight offshore jack-up drilling rigs required for the North Field Expansion (NFE) Project offshore Qatar.
Contracts for six of the eight rigs were awarded to GDI, while the contracts for the remaining two rigs were awarded to Northern Offshore Drilling Operations Limited, operating out of the United States of America.
Seadrill said on Thursday it had entered into a 50:50 joint venture with GDI, GulfDrill, which would initially manage and operate five premium jack-ups in Qatar with Qatar Petroleum, starting throughout 2020.
The five firm well-based contracts will have staggered start dates throughout 2020 with initial terms concluding in 2023 & 2024 respectively.
The total contract value is expected to be $656 million (including mobilization fees). Each contract has five single well options which could add up to an estimated 13.7 cumulative years of term and an additional contract value of $700 million.
GulfDrill will initially bareboat charter the West Telesto and West Castor jack-up rigs from Seadrill and has secured bareboat charters for three additional units from a third-party shipyard.
Bassoe Offshore estimates that the dayrates for both rigs will be $90,000.
Anton Dibowitz , CEO, commented: “We are excited to establish a significant presence in an important jack-up market and to partner with GDI. GulfDrill will give us the opportunity to improve our access to a market that is expected to show significant growth over the next years and strengthen our relationship with Qatar Petroleum.”
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