Rig Company Seadrill Sees Rough 2017 Despite Aramco Extension

Reuters

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)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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