Seadrill Gains Foothold in Key Jack-up Market

Seadrill Limited has reported that it has entered into a 50:50 joint venture with Qatar-based Gulf Drilling International (GDI).

The “GulfDrill” JV will initially manage and operate five premium jack-up rigs in Qatar with Qatar Petroleum commencing throughout 2020, Seadrill said.

“We are excited to establish a significant presence in an important jack-up market and to partner with GDI,” Seadrill CEO Anton Dibowitz said.

According to Seadrill, the five firm well-based contracts will commence on a staggered basis throughout 2020 with initial terms concluding in 2023 and 2024, respectively.

The company added that it expects the total contract value, including mobilisation fees, to be US$656 million.

Also, it noted that each contract has five single well options which could add up to an estimated 13.7 cumulative years of term and US$700 million of extra contract value.

Initially, GulfDrill will bareboat charter from Seadrill the West Castor and West Telesto jack-ups, Seadrill stated.

Moreover, the drilling contractor reported that the JV has secured bareboat charters for three additional units from a third-party shipyard.

“GulfDrill will give us the opportunity to improve our access to a market that is expected to show significant growth over the next years and strengthen our relationship with Qatar Petroleum,” Mr Dibowitz concluded.

Source: Rigzone