Seadrill Contracts Out Multiple Jack-Up Units

MarineLink.com April 3, 2014

Seadrill vessel: Photo courtesy of the owners

Seadrill Limited informs it has secured new contracts for the jack-up units 'West Tucana', 'West Telesto', 'West Ariel', and 'West Prospero'. Additionally, the contract for the 'West Mischief' has been extended by four months. The total revenue potential for the four new contracts and one extension is approximately US$319- million. Details as follows:

West Tucana, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Angola with Cabinda Gulf Oil Company Limited (CABGOC) - Chevron's wholly owned operating unit in Angola. The contract is for a firm period of 24 months. The total revenue potential for the primary contract term is approximately US$168 million inclusive of an estimated US$8.5 million of mobilization.

West Telesto, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Australia with Origin Energy Limited. The contract is for a firm period of two wells, expected to be 51 days each, plus two option wells. The total revenue potential for the primary contract term is approximately US$31 million inclusive of mobilization.

West Ariel, a Keppel FELS 'B' Class jack-up rig, has secured a contract offshore Congo with ENI Congo SA. The contract is for a firm period of 12 months plus an option of 12 months. The total revenue potential for the primary contract term is approximately US$89 million inclusive of an estimated US$8.5 million of mobilization. In addition Eni Congo has extended the charter of the LeTourneau Super 116-E jack-up rig West Mischief for four months at an increased day rate.

West Prospero, a Keppel FELS 'B' Class jack-up rig, has secured a contract offshore Vietnam with JVPC. The contract is for a firm period of one well, expected to be 40 days. The total revenue potential for the primary contract term is approximately US$6.5 million.

Following these fixtures, Seadrill says it has 92% of its jack-up capacity contracted for 2014 and 64% for 2015. The total order backlog for the jack-up fleet is US$4.4 billion and average remaining contract duration is 2.6 years.