Seadrill Orders New Ultra-Deepwater Drillship

Bermuda-based Seadrill has entered into a turnkey contract to build a new ultra-deepwater drillship at the Samsung yard in South Korea. The project value price is estimated to be around US$600 million [including project management, drilling and handling tools, spares, capitalized interest and operations preparations] with tail-heavy payment terms payable upon delivery, which is scheduled within the fourth quarter 2014.

Delivery is scheduled for the fourth quarter 2014. In addition, Seadrill has agreed a fixed price option to build a further drillship at the yard, with delivery in the first quarter 2015. With the current strong demand there is limited availability of rigs in 2014 and Seadrill believes it is likely that the option will be exercised and is currently discussing details of upgrades of that unit.

The drillship will be of the same design as the existing six drillships under construction at Samsung and will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa. Also, these units will be outfitted with seven ram configuration of the blowout preventer stack and with storing and handling capacity for a second BOP.

Seadrill’s construction program now totals 19 units, including 7 drillships, 2 harsh environment semi-submersibles, 5 tender rigs and 5 jack ups. In addition the Company has fixed priced options for three ultra-deepwater/harsh environment units.

The initial installments for the new drillship will be funded by liquidity from the recent US$1 billion bond offering.

#BermudaBusiness

Category: All, Business