Rig Company Seadrill Sees Rough 2017 Despite Aramco Extension
OSLO, Dec 29 (Reuters) - Oslo-listed Seadrill said on Thursday it had signed a three-year contract extension with Saudi Aramco for the AOD III jack-up drilling rig, corresponding to a rate of $102,740 per day according to a Reuters calculation.
Following the announcement, Seadrill Chief Executive Per Wullf made the following statements to Reuters:
- Operating expenses (OPEX) for the rig amount to $60,000-65,000 per day including overhead costs but excluding interest payments and debt amortisation
- Says the rig unit has operated very well for Aramco, and that the rate obtained in the contract extension reflects what can be obtained for an outperforming unit
- Repeats that the market is difficult, and says 2017 will be a rough year
- Says in the current market it's generally easier to win extensions of existing deals than to obtain new contracts
- Company still aims to complete restructuring of its $9 billion debt in April
(Reporting by Ole Petter Skonnord, editing by Terje Solsvik)
WHAT DO YOU THINK?
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.
Operates 44 Offshore Rigs
- Saudis Said to Weigh Delaying International Part of Aramco IPO (Oct 13)
- How Deep Will Saudi Cut Its Oil Output? To the Lowest Since 2015 (Oct 10)
- Saudi Aramco Plans 'Mega Investment' in World's Top Oil Guzzler (Oct 09)
Company: Seadrill Ltd more info
- Seadrill's Debt Overhaul Faces Creditor Scrutiny (Oct 02)
- Seadrill Files for Bankruptcy in Bid to Shrink Debt Burden (Sep 13)
- Seadrill Warns Again Of Chapter 11 As Extends $14B Debt Talks (Jul 26)