Seadrill has been awarded a contract worth approximately US $150 million for its newbuild drillship West Tellus currently under construction at Samsung Heavy Industries shipyard in South Korea.
The driller signed a deal with Chevron China Energy Company for the ultra-deepwater unit to work in support of the US operator’s affiliated global exploration program. The contract will start in China immediately upon shipyard delivery, and thereafter relocate to Liberia. The agreement is for a period of 180 days, with the potential revenue of approximately $150 million inclusive of bonus potential and mobilisation.
Seadrill is also engaged in advanced discussions with an unnamed major oil company for a multi-year contract starting in direct continuation of the Chevron contract.
The West Tellus is a 6th generation drillship under construction at Samsung’s yard in Geoje, with the unit expected to be delivered in September this year. It will be outfitted to work in up to 3,048 m (10,000 ft) of water, but is capable of drilling in water depths of up to 3,658 m (12,000 ft) and drilling wells to a total depth of up to 11,278 m (37,000 ft).
Per Wullf, the new CEO and President of Seadrill Management Ltd. said, “The multi-jurisdiction contract for West Tellus demonstrates our willingness and ability to contract opportunistically and strategically when it is justified. The initial contract on West Tellus allows us to expand a long standing relationship with a key customer in the ultra-deepwater segment, while also providing Seadrill the opportunity to place the West Tellus in West Africa, ready for a follow-on contract.”
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