Seadrill continues big week: A new contract in Malaysia and a new tender rig

Seadrill has been having a good week. Yesterday, the company announced it has exercised an option to build a new ultra-deepwater dual derrick drillship at the Samsung yard in South Korea. Today, Seadrill announced the company has been awarded an 18 month contract for its West Menang and that it has exercised an option to build a new tender barge.

Murphy Sabah Oil Co Ltd awarded Seadrill an 18 month contract for the semi tender rig West Menang to operate on the Kikeh Spar deepwater field in Malaysia. Estimated contract value is approximately US $100 million (including mobilization and modification of approximately US $14 million), and the commencement is scheduled for later this quarter.

Seadrill has also exercised an option to build a new tender barge at the COSCO Nantong Shipyard in China. The new unit, T17, is scheduled for delivery in the first quarter 2013. Total project price is estimated at US $115 million, which includes project management, drilling and handling tools, spares and capitalized interest.

T17 is similar to the two tender rigs Seadrill ordered from COSCO on February 28 this year, with enhanced drilling capabilities allowing for higher drilling efficiency including the advantage of a light weight drilling equipment set.

Via Seadrill