Seadrill secures $319M in new jack-up rig contracts

Seadrill Limited has secured new contracts for the jack-up drilling rigs West Tucana, West Telesto, West Ariel, and West Prospero.

Additionally, the contract for the West Mischief has been extended by four months. The total revenue potential for the four new contracts and one extension is approximately US$319 million.

The West Tucana, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Angola with Cabinda Gulf Oil Company Limited (CABGOC) – 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 approximately US$168 million inclusive of an estimated US$8.5 million of mobilization. The West Tucana is currently operating in Vietnam and will likely be available to commence its charter in late November 2014.

The West Telesto, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Australia with Origin Energy Limited. 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 approximately US$31 million inclusive of mobilization. The West Telesto is currently operating in Vietnam and will likely be available to commence its charter in the fourth quarter of 2014.

The West Ariel, a Keppel FELS ‘B’ Class jack-up 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 approximately US$89 million inclusive of an estimated US$8.5 million of mobilization. The West Ariel is currently operating in Vietnam and will likely be available to commence its charter in late April or early May 2014.

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

The West Prospero, a Keppel FELS ‘B’ Class jack-up 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 approximately US$6.5 million. The West Prospero is currently operating in Vietnam and will likely be available to commence its charter this month following the completion of its current contract.

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