Seadrill Secures Jack-Up Rig Drilling Contracts

West Telesto, image (c) Seadrill

Seadrill announced today they have signed USD $319 million in contracts for five of their jack-up rigs.

The following is a breakdown of the contract details:

West Tucana

• Type: Friede & Goldman JU-2000E
• Location: Offshore Angola with Cabinda Gulf Oil Company Limited (CABGOC) – Chevron’s wholly owned operating unit in Angola.
• Details: 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.

West Telesto

• Type: Friede & Goldman JU-2000E
• Location: Offshore Australia with Origin Energy Limited.
• Details: 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.

West Ariel

• Type: Keppel FELS ‘B’ Class
• Location: Offshore Congo with ENI Congo SA.
• Details: 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.

West Mischief

• Type: LeTourneau Super 116-E
• Location: Eni Congo
• Details: Charter extension for four months at an increased day rate resulting in an additional US$24 million to the total value of the contract

 

West Prospero

• Type: Keppel FELS ‘B’
• Location: Offshore Vietnam with JVPC.
• Details: 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.

Seadrill notes that 92 percent of its jack-up capacity has beeen 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.