US and SE Asia charters boost Seadrill’s order book



Bermuda-domiciled rig contractor Seadrill has boosted its order book by around $97.5 million with new contracts for its sixth-generation drillship West Capella and seventh-generation drillship West Vela.

US independent Talos Production has chartered the West Vela for a contract with an estimated duration of 150 days in the US Gulf of Mexico. This charter, which is expected to commence in the third quarter of 2024, represents a total contract value of approximately $73.5 million, excluding managed pressure drilling (MPD) services.

The West Vela is currently working for Beacon Offshore in the US Gulf of Mexico on a contract due to expire in May. The drillship then has a short-term campaign, also in the US Gulf, with an undisclosed operator. Seadrill earlier said this contract, which is expected to complete in August, will be after the West Vela transitions to Seadrill from the third-party manager.

Meanwhile, the operator of the West Capella has exercised a one-well option with the existing third-party manager, extending its operations by approximately two months. The contract is in direct continuation of the rig’s current programme and represents a total contract value of approximately $24 million, Seadrill said on Monday.

The West Capella is currently drilling Harbour Energy’s Gayo-1 wildcat on the Andaman II production sharing contract offshore Indonesia.

Also, Seadrill has been advised by the current manager of the West Auriga that this seventh-generation drillship now will be released in February 2024 due to changes in client BP’s drilling sequence — the UK supermajor had been expected to keen the unit on hire in the US Gulf of Mexico through May this year.

This move enables Seadrill to resume management of the rig in the first quarter, accelerate preparation for the drillship’s $577 million 1064-day contract with Petrobras in Brazil — which is due to start in the second half of 2024 — and more quickly achieve synergies from the 2023 acquisition of Aquadrill.

“It is a pleasure to extend our contractual relationship with our longstanding client, Talos Energy. We also look forward to getting Seadrill coveralls back onboard the West Auriga,” said Simon Johnson, Seadrill’s chief executive.