This news should buoy RIG and all drilling companies/stocks:
SeaDrill Ltd. & TOTAL in $1.1B Deal
Norwegian oilfield service firm, SeaDrill Limited (SDRL) has signed a five-year contract with international oil and gas major TOTAL S.A.’s (TOT) Nigerian arm, Total Upstream Nigeria Ltd. The market responded favorably to the news, with SeaDrill Ltd.’s shares gaining about 1.2% in the NYSE.
Per the contract, TOTAL will employ SeaDrill Ltd.’s ultra-deepwater drillship West Jupiter for its EGINA ultra-deep offshore project in Nigeria. The deal is expected to garner $1.1 billion in revenues, including mobilization costs. With this deal in the basket, SeaDrill has about $20 billion in total backlog.
Absolutely. The World demand for oil is only Increasing ....... Oil companies will Need To Drill, and they'll Need the drillers to explore and drill those wells. And many new wells are going to be using the Ultra-Deep rigs....but that doesn't mean that the shallow rigs will just become shuttered & closed.