HAMILTON, BERMUDA--(Marketwire - Nov 12, 2012) - SDRL - Seadrill receives award for
newbuild ultra-deepwater semisubmersible West
Mira with start-up in 2015.
Seadrill has received a Letter of Award
from Husky Oil Operations Limited for a new five-year contract for the
newbuild
harsh environment semi-submersible rig West Mira for operations in
Canada and
Greenland. Total estimated revenue potential for the contract,
including
mobilization and performance bonus is approximately US$1.18 billion for the
five
firm years. The West Mira is currently under construction at the Hyundai
Samho
Shipyard in South Korea and delivery is scheduled for Q4 2014. Upon
delivery
from the yard the rig will commence transit to the east coast of Canada.
Start-up of operations is estimated during Q2 2015. The West Mira is
designed for
drilling in harsh environments and water depths up to 10,000 ft. The unit
will
be equipped with DP-3 (dynamic positioning) as well as 12 point
mooring
capability, potential for two six ram blowout preventers and along with
1,000
ton load path capacity.
The West Mira represents one out of ten semi-submersible rigs in the
Seadrill
fleet capable of operations in harsh environments, eight of which have
been
delivered since 2008. Seadrill has another harsh environment newbuild, the
West
Rigel, of similar design as the West Mira, which will be delivered in Q1
2015
from the Jurong shipyard in Singapore that is currently still
available for
contract.
John Fredriksen Chairman of Seadrill Limited says, "The West Mira will
be the
second rig Seadrill will operate in Eastern Canada. This award is the
result of
the reputation for safe and efficient operations that Seadrill has
developed
within the offshore drilling industry. After enjoying a safe and
successful
drilling campaign with Husky Energy in China with the West Hercules,
we are
pleased that Husky has chosen to extend that relationship with a contract
for a
newbuild offshore Eastern Canada."
Fredriksen continued to say, "The award of a five-year contract
with
commencement in 2015 is also a clear sign of the present tightness in the
harsh
environment / deepwater drilling market. Seadrill currently have several
options / proposals to increase the newbuild program within this field
further. Based on
close discussions with our customers we also see several additional
attractive
long-term chartering opportunities. A decision regarding further
investment
within this segment is likely to be taken shortly and might also include
direct
investments from North Atlantic Drilling Ltd."
In line with the omnibus agreement terms and conditions between
Seadrill and
Seadrill Partners, Seadrill is obligated to offer the West Mira to
Seadrill
Partners at a fair market price. Such a deal represents one of many
attractive
opportunities to secure aggressive profitable growth and potential
dividend
distribution increases in the newly established Seadrill Partners.
This information is subject of the disclosure requirements pursuant to
section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
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Source: Seadrill Limited via Thomson Reuters ONE
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