A Review of the Nigerian Energy Industry

Chevron signs up Seadrill’s newbuild drillship

Seadrill drillship19 July 2013, News Wires – Chevron has inked a deal to take a newbuild drillship from Norwegian rig owner Seadrill on a short-term charter.

The US supermajor has signed up for the ultra-deepwater unit West Tellus for 180 days from delivery out of Samsung Heavy Industries in September.

The short-term deal would appear to have been sealed at a huge rate with the firm half year period plus any possible bonuses and mobilisation netting Seadrill $150 million.

Inclusive of bonuses and mobilisation, this equates to an all-in dayrate of $833,000, making it likely that potential bonuses are high.

A brief market note from JB Lowe at Cowen termed the contract “modestly positive” and estimated a flat dayrate of $666,000 assuming a mobilisaiton fee of $30 million.

The contract will begin in China from where the unit will then shift to Liberia.

Seadrill also said it is “in advanced discussions with a major oil company for a multi-year contract commencing in direct continuation of the Chevron contract” for the drillship.

Seadrill had already touted the West Tellus to Chevron for a multi-year contract working at the oil giant’s Indonesia Deep-water Development, IDD.

Also no Friday Seadrill revealed that chief executive Fredrik Halvorsen has quit to be replaced by chief operating officer Per Wullf. The announcement of the West Tellus deal also showed Wulff has taken the position of president.

– Upstream.

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