Sevan Drilling has sorted out its problems with two rigs in Brazil. Petrobras had suspended the contract of the Sevan Driller back in December as part of ongoing negotiations for the rig and another one called Sevan Brasil.
Today, Petrobras and Sevan Drilling executed an early termination of the Sevan Driller contract and reduction of the contract dayrate on the Sevan Brasil.
The Sevan Brasil contract dayrate has been reduced to $250,000 per day effective 26 February 2016 through the remaining term of the contract, ending July 2018 and a portion of the dayrate continues to be denominated in Brasilian reals.
The Sevan Driller contract was mutually agreed to be cancelled effective from 1 December 2015. Subsequent to the effective cancellation of the contact, the unit has been awarded a well intervention contract by Shell in Brazil for 60 days with two 30 day options commencing in the second quarter of 2016, adding approximately $11m in revenue backlog.