Seadrill Announces Settlement and 18 Month Extension For Semi-Submersible

By MarEx 2013-10-11 11:55:00

Image Courtesy of West Aquarius Bulletin Board Facebook

 Seadrill Limited announces today that its subsidiary, Seadrill Partners, as part of a settlement agreement has agreed to non-payment for 37 days during the recent mobilization period as a result of the time required for the ultra-deepwater harsh environment semi-submersible West Aquarius to complete modifications and repairs in order to meet the regulatory requirements for operations in Canadian waters and for the operator to receive authorization from the Canadian authorities to commence operation. This loss will negatively impact third quarter results.

In conjunction, it is negotiating an 18 month contract extension thereby extending the operations for the rig off the east coast of Canada until April 2017.  The new contract, which will be subject to required approvals by the joint interest owners, is expected to be executed by November 30, 2013.

The total revenue potential for the extension is estimated to be approximately US$337 million.

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