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Seadrill (SDRL) Secures New Contracts Worth $97.5 Million
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Seadrill Limited (SDRL - Free Report) , an offshore driller, announced multiple contract awards and a contract extension for its West Vela and West Capella drillships worth $97.5 million. The company also provided an update regarding its West Auriga drillship.
Seadrill’s West Vela drillship was secured by Talos Production in the U.S. Gulf of Mexico. The total value of the contract is around $73.5 million, excluding managed pressure drilling services. The deal has an estimated duration of 150 days, scheduled to begin in the third quarter of 2024.
West Vela is a seventh-generation ultra-deepwater dual-activity drillship built by Samsung Heavy Industries in 2013. It has a maximum drilling capacity of 37,500 feet and can operate at a depth of 12,000 feet in water. The West Vela drillship, operated by Diamond Offshore on behalf of Seadrill, finished working with BP in the Gulf of Mexico in August 2023. It is expected to resume operations with Beacon that will continue till May 2024.
Seadrill has also secured more work in Indonesia. The operator of West Capella has exercised a one-well option worth approximately $24 million with its existing third-party manager, Vantage Holdings. This has extended the rig’s operations by approximately two months. The West Capella drillship was used by Mubadala Energy for Layaran-1 exploration well and by Harbour Energy for Gayo-1 exploration well.
The West Capella drillship was built by Samsung Heavy Industries in 2008. It is a 6th-generation ultra-deepwater dual-activity drillship with a maximum drilling depth of 37,500 feet and can operate at a depth of 10,000 feet in water.
Additionally, Seadrill will be able to resume management of the West Auriga drillship in the first quarter of 2024. The rig will be released in February 2024 by its current manager, Diamond Offshore, following some changes in its client’s drilling schedule. This will allow Seadrill to accelerate preparation for its contract with Petrobras at the beginning of the second half of 2024. It will also allow Seadrill to achieve synergies from its acquisition of Aquadrill in 2023.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. Recently, it announced the expansion of its network of renewable fuel refilling stations in Europe, demonstrating its commitment to a sustainable energy model.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 boepd. The company has also done well in reducing its debt in the past year.
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Seadrill (SDRL) Secures New Contracts Worth $97.5 Million
Seadrill Limited (SDRL - Free Report) , an offshore driller, announced multiple contract awards and a contract extension for its West Vela and West Capella drillships worth $97.5 million. The company also provided an update regarding its West Auriga drillship.
Seadrill’s West Vela drillship was secured by Talos Production in the U.S. Gulf of Mexico. The total value of the contract is around $73.5 million, excluding managed pressure drilling services. The deal has an estimated duration of 150 days, scheduled to begin in the third quarter of 2024.
West Vela is a seventh-generation ultra-deepwater dual-activity drillship built by Samsung Heavy Industries in 2013. It has a maximum drilling capacity of 37,500 feet and can operate at a depth of 12,000 feet in water. The West Vela drillship, operated by Diamond Offshore on behalf of Seadrill, finished working with BP in the Gulf of Mexico in August 2023. It is expected to resume operations with Beacon that will continue till May 2024.
Seadrill has also secured more work in Indonesia. The operator of West Capella has exercised a one-well option worth approximately $24 million with its existing third-party manager, Vantage Holdings. This has extended the rig’s operations by approximately two months. The West Capella drillship was used by Mubadala Energy for Layaran-1 exploration well and by Harbour Energy for Gayo-1 exploration well.
The West Capella drillship was built by Samsung Heavy Industries in 2008. It is a 6th-generation ultra-deepwater dual-activity drillship with a maximum drilling depth of 37,500 feet and can operate at a depth of 10,000 feet in water.
Additionally, Seadrill will be able to resume management of the West Auriga drillship in the first quarter of 2024. The rig will be released in February 2024 by its current manager, Diamond Offshore, following some changes in its client’s drilling schedule. This will allow Seadrill to accelerate preparation for its contract with Petrobras at the beginning of the second half of 2024. It will also allow Seadrill to achieve synergies from its acquisition of Aquadrill in 2023.
Zacks Rank and Key Picks
Currently, SDRL carries a Zacks Rank #3 (Hold).
Investors might want to look at some better-ranked stocks in the energy sector, such as Repsol (REPYY - Free Report) , Vaalco Energy (EGY - Free Report) and Harbour Energy (HBRIY - Free Report) . While Repsol and Vaalco currently sport a Zacks Rank #1 (Strong Buy), Harbour Energy holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. Recently, it announced the expansion of its network of renewable fuel refilling stations in Europe, demonstrating its commitment to a sustainable energy model.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 boepd. The company has also done well in reducing its debt in the past year.