Seadrill to Receive 3-Rig Drilling Contract, Could be Valued at $4B

Norwegian oil-and-gas equipment company Seadrill Ltd. said it received a commitment from a major oil company for three newbuild drillships, which could be valued $4 billion.

Shares climbed 4.3% to $39.40 in premarket trading. The stock is up 14% so far this year.

The contract, which consists of 19 rig years, includes drillships West Auriga (UDW drillship), West Vela (UDW drillship) and a third drilling operating drilling unit which was unnamed. The first two drillships are under construction at Samsung Heavy Industries Co. Ltd. in South Korea. They will transition to the Gulf of Mexico upon delivery, which is scheduled for late February and May of next year. They are the fourth and fifth drillships delivered to Seadrill in the past four years and each will be equipped with 1,250 ton load capacity.

Seadrill said the depth of this contract commitment is a result of the company's record to deliver rigs on time and operate with a competent workforce.

"We are excited about the opportunity to further grow our fleet and operations in the Gulf of Mexico, which we consider as one of the most effective drilling regions," said Alf C. Thorkildsen, Chief Executive Officer.

Last quarter, the company's earnings slumped 53% as its better-than-expected revenue was masked by the sale of its Seawell subsidiary.

Copyright (c) 2012 Dow Jones & Company, Inc.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
450637 - Staff Piping Engineer
Expertise: Mechanical Engineering|Piping Engineer
Location: Los Angeles, CA
Floor Hand
Expertise: Maintenance Technician
Location: Henderson
Maintenance Technician Mechanical
Expertise: Maintenance Technician|Mechanic|Mechanical Technician
Location: Midland
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours