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 is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
Back to top button