Hamilton, Bermuda-based Seadrill said Feb. 13 that it thinks contracts with Brazil’s Petrobras to extend its ultradeepwater semisubmersibles will not be completed in the original time frame or terms. “Recent developments within Petrobras” caused Seadrill’s decision.

The contracts apply to the extension of the West Taurus and West Eminence semisubmersibles, the company added.

Seadrill will remove US$1.1 billion from the backlog reported in its November 2014 third-quarter earnings release and is working with Petrobras to find “a mutually agreeable commercial solution.”

At the time of the earnings release, Seadrill also reported that contract awards for ultradeepwater drillships on the Libra Field were approved. Final contracts for the West Tellus and West Carina were signed, and operations are scheduled to begin in 2015’s second quarter.