Seadrill said on Dec. 29 that it signed a three-year contract extension with Saudi Aramco for the AOD III jackup rig, corresponding to a rate of $102,740 per day, according to a Reuters calculation.

Following the announcement, Seadrill's CEO Per Wullf told Reuters that opex for the rig ranged between $60,000 and $65,000 per day, including overhead costs but excluding interest payments and debt amortization.

Wullf said the rig unit has operated very well for Aramco, and that the rate obtained in the contract extension reflects what can be obtained for an outperforming unit.

He also said the market is difficult, and that 2017 will be a rough year. Wullf said that in the current market, it is generally easier to win extensions of existing deals than to obtain new contracts.