Seadrill Limited, a world leader in offshore drilling, provides an update for the first quarter of 2021.
We continue to sign high-quality and high-value contracts, reflecting depth of customer relationships. The quarter update includes:
- West Tellus – contract for two wells and additional intervention work plus two optional wells with Shell Brazil in direct continuation to the Petrobras contract, backlog contribution of $23m.
- West Hercules – options were exercised by Equinor in Norway, backlog contribution of $34m.
Post quarter end updates include backlog additions of $374m:
- West Saturn – four-year firm contract, with four one year options, with Equinor Brasil Energia. The contract is expected to commence in April 2022, backlog contribution of $354m.
- West Neptune – contract signed with Talos, for one well firm with one well option which commenced in May 2021, and a further contract was signed with Kosmos for one well firm commencing in direct continuation of the Talos contract.
- West Tellus – Petrobras has provided notice that the rig will conclude operations in September 2021 earlier than was originally expected in December 2021. The rig is anticipated to work in direct continuation with Shell Brazil.
Total backlog of $2.1bn as of 20 May 2021, which is one of the highest across our peers. Seadrill is contracted to work across all major oil and gas basins in the world: 13 rigs in operation globally, including in the Arabian Gulf, the Americas, and Norway. This lays the foundation for Seadrill to continue in a strong position as the market recovers this year and beyond.
Seadrill’s financial restructuring continues to make good progress through productive discussions with all parties involved. It is likely that the comprehensive restructuring plan will require a substantial impairment and losses for current shareholders. As a result, the Company currently expects that shareholders are likely to receive minimal recovery for their existing shares.
