Seadrill enters deal to sell its Qatar jack-up fleet

Seadrill offshore drilling contractor will sell its Qatar jack-up fleet, the three jack-up rigs, the West Castor, the West Telesto and the West Tucana and its 50% equity interest in the joint venture that operates these rigs offshore Qatar to Seadrill’s joint venture partner Gulf Drilling International (GDI) for cash proceeds of $338m.

The transaction subject to approval or non-objection of the Qatar Financial Centre Authority and approval of the shareholders of GDI’s parent company, should close early in the third quarter of 2024.

Simon Johnson, president and chief executive, said: “Our divestiture of the Qatar Jack-Up Fleet and exit from the joint venture are consistent with our ongoing efforts to strengthen and simplify our business and will allow us to focus on Seadrill’s core business: operating deepwater rigs across the Golden Triangle and similarly advantaged geographies.”

The New York and Oslo-listed Bermuda based offshore drilling contractor Seadrill announced recently contract awards for two of its drillships.

First the drillship “West Capella” has secured a one-well contract in South Korea, with an estimated duration of 40 days, with expected commencement in December 2024, and valued at approximately $32m, including a mobilization fee of approximately $10m and excluding fees for additional services.

Secondly the drillship “West Neptune” has secured a six-month contract extension with an independent operator in the U.S. Gulf of Mexico, expected to start in the third quarter of 2025 in direct continuation of its current contract.

The estimated contract value for “West Neptune” of approximately $86m excludes fees for additional services, including managed pressure drilling (MPD).