North Atlantic Drilling awarded 10-year jackup contracts

North Atlantic Drilling awarded 10-year jackup contracts

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.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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