North Atlantic Drilling, a subsidiary of Seadrill, has secured 10-year contracts from ConocoPhillips for the hire of jackup rigs West Elara and West Linus in the Greater Ekofisk Area.
The total value of the new contracts is estimated at $1.4bn excluding performance bonuses. As part of the agreement, North Atlantic Drilling has agreed to a dayrate adjustment on the existing West Linus contract effective from April 2017, resulting in a $58m reduction in current backlog.
The new West Elara contract which is expected to commence in October 2017 includes a period of fixed dayrates until March 2020 and a market indexed rate applicable thereafter until October 2027.
The contract for West Linus has been extended from May 2019 until the end of 2028 at a market indexed dayrate, which the company believes will contribute an estimated $706m of contract backlog.