SeaDrill Ltd. & TOTAL in $1.1B Deal
Zacks By Zacks Equity Research
23 minutes ago
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.
West Jupiter, a 6th generation drillship, will likely be delivered in Aug 2014 from the Samsung Heavy Industries shipyard, located in Geoje, South Korea. This drillship will have the capacity to work at a water depth of up to 12,000 feet and drill to a depth of 37,500 feet. The newbuild is one of eight such drillships under construction at SeaDrill Ltd.