Tullow Oil Ghana Ltd. awarded Seadrill a one-year contract for operations offshore Ghana with the newbuild rig West Leo while a memorandum of understanding was entered into with a major oil company for a five-year contract for operations in North America with the rig West Capricorn, both ultra-deepwater semisubmersibles.

The potential contract revenue for the one-year period for the West Leo is $204 million which includes $18 million in mobilization revenue. In addition, the rig can earn a daily performance bonus of up to 10%.

The rig is currently under construction at Jurong Shipyard in Singapore with delivery scheduled for the end of January 2012. The unit is expected to start on the Tullow contract in mid-April 2012. The rig will be the second unit of the Moss Maritime CS50 Mk II design that Seadrill puts into operations.

The potential contract value for the West Capricorn agreement is $919 million, which includes a $30 million mobilization fee. The oil company has the right to extend the contract term for two additional one-year periods.

West Capricorn is also under construction at Jurong Shipyard. The unit is scheduled for delivery in late December 2011. Start-up operations are scheduled for May 2012. The rig will be the first ultra-deepwater unit in the industry that is outfitted with a seven-ram blowout preventer.