Offshore drilling agency Seadrill Restricted is promoting its three jack-up rigs and its 50 % stake within the three way partnership (JV) working the rigs in Qatar to its JV associate Gulf Drilling Worldwide (GDI) for money proceeds of $338 million.
The three rigs are the West Castor, the West Telesto and the West Tucana offshore Qatar, Seadrill mentioned in a latest information launch.
The transaction is predicted to shut early within the third quarter, topic to the approval or non-objection of the Qatar Monetary Centre Authority and approval of the shareholders of GDI’s mother or father firm, and to different sure situations, Seadrill mentioned.
“Our divestiture of the Qatar Jack-Up Fleet and exit from the three way partnership are according to our ongoing efforts to strengthen and simplify our enterprise and can permit us to give attention to Seadrill’s core enterprise: working deepwater rigs throughout the Golden Triangle and equally advantaged geographies,” Seadrill President and CEO Simon Johnson said. “We consider that our strengthened liquidity place upon completion of the jack-up sale, coupled with our conviction within the deepwater floater market outlook and Seadrill’s aggressive positioning inside it, helps the growth of our share repurchase program”.
Additional, Seadrill’s board has elevated the corporate’s combination share repurchase authorization. This allows Seadrill to repurchase as much as an extra $500 million of its excellent frequent shares over a two-year interval. It will begin after the present share repurchase program is accomplished, in response to the discharge.
Earlier within the month, Seadrill mentioned that it had secured contracts for 2 of its drillships. The West Capella secured a one-well contract in South Korea. Anticipated to begin in December, the contract has an estimated length of 40 days, valued at roughly $32 million. It features a mobilization payment of roughly $10 million excluding charges for added providers, the corporate mentioned in a separate information launch.
The West Neptune secured a six-month contract extension with an undisclosed impartial operator within the U.S. Gulf of Mexico. The extension is predicted to begin within the third quarter of 2025, in direct continuation of the present contract.
The contract has an estimated worth of roughly $86 million. It excludes charges for added providers, together with managed stress drilling (MPD). As well as, Seadrill will improve the West Neptune with MPD capabilities throughout deliberate out-of-service intervals, making it the tenth rig within the firm’s fleet with MPD or MPD-equivalent applied sciences, in response to the discharge.
Seadrill describes itself as a number one offshore drilling contractor using superior expertise to unlock oil and fuel assets for purchasers throughout harsh and benign areas across the globe. Seadrill’s technologically superior fleet spans all asset courses permitting its skilled crews to conduct operations throughout geographies, from shallow to ultra-deepwater environments.
Gulf Drilling Worldwide Restricted (GDI) was established in Might 2004 as the primary onshore and offshore oil and fuel drilling firm in Qatar. GDI was shaped as a three way partnership between Qatar Petroleum (QP), Qatar’s nationwide oil company, and Japan Drilling Co., Ltd. (JDC), in response to GDI’s web site.
To contact the writer, electronic mail rocky.teodoro@rigzone.com