Sevan Drilling fixes Brazilian rig contracts

Sevan Drilling fixes Brazilian rig contracts

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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