Seadrill Defers Delivery of Drillships from DSME

Norwegian offshore driller Seadrill reported Friday that it has reached an agreement with the DSME shipyard in South Korea to delay the delivery of two ultra-deepwater drillships: the West Aquila and West Libra. The drillships will now be delivered in the second quarter of 2018 and the first quarter of 2019 respectively.

Under the terms of the original construction contracts, the units were to be delivered by the end of 2Q 2016 and the total final yard instalment for both units of over $800 million was due at that time. Seadrill said the new agreement significantly improves its near-term liquidity position by deferring these capex commitments to 2018 and 2019 with no further payments to the yard until that time.

On Thursday Seadrill told Reuters that it sees a challenging market in 2016 and 2017 amid low crude prices and cost cuts among oil and gas operators.

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