John Fredriksen’s Seadrill has secured three new rig contracts with total value of around $89m, according to the company’s latest fleet status report.
Semi-submersible rig West Phoenix was awarded a two-well contract and six options with Equinor in the UK and Norway, which is expected to commence in direct continuation with its current contract. Three of the options have been exercised resulting in total backlog of approximately $51m.
The West Castor jackup rig was awarded a contract by Staatsolie in Suriname commencing in March. The total backlog including mobilisation is approximately $25m.
Additionally, the West Callisto jackup rig was awarded a 6-month extension with Saudi Aramco which will see the unit keep working for the company until July, adding about $13m in backlog.
“The offshore drilling market continues to show signs of improvement with increased tendering activity and better contract economics. We expect more activity in 2019 to lead to a tighter supply demand balance and improved pricing in 2020 as the recovery progresses,” said Anton Dibowitz, CEO of Seadrill.
Earlier this month, Seadrill formed a 50:50 joint venture with Sonangol to operate drillships with a focus on opportunities in Angolan waters.