Seadrill Wins GOM Contracts

Seadrill Ltd (OTCMKTS: SDRLF) reported Friday that it has added approximately $52 million of backlog following the end of the third quarter of 2020.
The drilling contractor stated that Walter Oil & Gas awarded one firm, plus one optional, well contract for the Sevan Louisiana semi-submersible rig in the U.S. Gulf of Mexico (GOM). The contract adds $17 million in backlog over the firm term, Seadrill noted in a third-quarter trading update.
Kosmos Energy (NYSE: KOS) has contracted the West Neptune drillship for one firm well contract in the U.S. GOM, Seadrill also revealed. According to Seadrill, the Kosmos contract will increase backlog by $9 million.
Beyond North America, Equinor (NYSE: EQNR) has exercised additional wells on the West Hercules semisub in Norway, Seadrill continued. The drilling contractor stated the additional work for Equinor will add $26 million to its backlog. Moreover, it noted that Total Angola (NYSE: TOT) has released the West Gemini drillship from its obligations under the contract. Seadrill pointed out that it is entitled to a lump-sum fee as compensation.
Given the latest developments, Seadrill’s total backlog stands at $2.1 billion, the company stated. It also noted that its technical utilization – total hours available for work, excluding planned maintenance, divided by the total number of hours in the period – stands at 94 percent.
Seadrill also pointed out that its economic utilization is 92 percent. It explained that economic utilization equates to total revenue, excluding bonuses, for the period as a proportion of the full operating dayrate multiplied by the number of days on contract in the period.
To contact the author, email mveazey@rigzone.com.
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.
- Shell CEO Says World 'Desperately In Need' Of Natural Gas
- Fate Of $8Bn Alaska Oil Project To Be Resolved In Next 30 Days
- Gov't Tampering Puts Australian Gas Market In Unenviable Position
- Texas Power Outages Increase As Ice Storm Persists
- Shell's Record Earnings Draw Angry Reactions
- OPEC+ Exports Show Russia Surges While Saudi Arabia Dials Back
- Oil And Gas Firms Need To Accelerate Shift To Low Carbon Energy
- Oil Posts Second Weekly Loss as Stockpiles Swell
- Capricorn Reshapes Its Board of Directors
- Lukoil Hits 50 Million Tons Of Hydrocarbon Production In Caspian Sea
- New SPR Bill Passes House
- What Bad Habits Should Oil and Gas Jobseekers Avoid?
- Biden To Support ConocoPhillips Alaska Oil Project, Defying Greens
- USA Drops 3 Gulf of Mexico Rigs
- USA Oil and Gas Employs Almost 1 Million in 2022
- Energy Services Sector Will Grow To $1 trillion In 2025
- Shell CEO Says World 'Desperately In Need' Of Natural Gas
- Shell Makes Host of Company Changes
- New Discoveries Make 2022 Highest Value Year In Over A Decade
- Winter Storm Mara Update
- Valaris Employee Reported Missing from Rig
- Gasoline and Diesel Prices Expected to Fall
- Is the USA Shale Boom Over?
- New SPR Bill Passes House
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Iran Oil Gushes Into Global Market
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt
- What Bad Habits Should Oil and Gas Jobseekers Avoid?