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Seadrill (SDRL) Announces New Contracts for Two Drillships
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Seadrill Limited (SDRL - Free Report) , the offshore drilling contractor has announced new contract awards for two of its drillships –West Capella and West Neptune.
The West Capella drillship has won a one-well contract with an undisclosed operator in South Korea. The contract is expected to begin in December 2024 and its estimated duration is 40 days. The contract is valued at approximately $32 million, excluding fees for additional services. The valuation includes mobilization fees of $10 million as well.
West Capella was used by Mubadala Energy to spud the Layaran-1 exploration well. Per Seadrill’s fleet status report released in February 2024, the rig is anticipated to be engaged in an assignment in Indonesia till August 2024. The West Capella drillship is a sixth-generation ultra-deepwater dual activity drillship which was built by Samsung Heavy Industries in 2008. It has a maximum drilling depth of 37,500 feet and can operate in water depths of 10,000 feet. The rig has the capacity to accommodate 180 people.
The West Neptune drillship has secured a contract extension with an independent operator in the U.S. Gulf of Mexico, prolonging the rig’s stay in the region by six months. The extension is expected to begin in the September quarter of 2025, in direct continuation to the rig’s current contract. The contract is valued at approximately $86 million, excluding fees for additional services. The valuation includes managed pressure drilling services (MPD).
Seadrill plans to upgrade the drillship with MPD capabilities during scheduled out-of-service periods. Following its upgradation, the West Neptune drillship will be the tenth rig in the company’s fleet with MPD or MPD-equivalent technologies. The West Neptune is a seventh-generation ultra-deepwater Samsung 12,000 drillship built in 2014. The rig has a maximum drilling depth of upto 37,500 feet and can operate in water depths of 12,000 feet.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company, with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lesser carbon footprint compared with other fossil fuel, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it capitalize on the mounting global demand in the future.
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Seadrill (SDRL) Announces New Contracts for Two Drillships
Seadrill Limited (SDRL - Free Report) , the offshore drilling contractor has announced new contract awards for two of its drillships –West Capella and West Neptune.
The West Capella drillship has won a one-well contract with an undisclosed operator in South Korea. The contract is expected to begin in December 2024 and its estimated duration is 40 days. The contract is valued at approximately $32 million, excluding fees for additional services. The valuation includes mobilization fees of $10 million as well.
West Capella was used by Mubadala Energy to spud the Layaran-1 exploration well. Per Seadrill’s fleet status report released in February 2024, the rig is anticipated to be engaged in an assignment in Indonesia till August 2024. The West Capella drillship is a sixth-generation ultra-deepwater dual activity drillship which was built by Samsung Heavy Industries in 2008. It has a maximum drilling depth of 37,500 feet and can operate in water depths of 10,000 feet. The rig has the capacity to accommodate 180 people.
The West Neptune drillship has secured a contract extension with an independent operator in the U.S. Gulf of Mexico, prolonging the rig’s stay in the region by six months. The extension is expected to begin in the September quarter of 2025, in direct continuation to the rig’s current contract. The contract is valued at approximately $86 million, excluding fees for additional services. The valuation includes managed pressure drilling services (MPD).
Seadrill plans to upgrade the drillship with MPD capabilities during scheduled out-of-service periods. Following its upgradation, the West Neptune drillship will be the tenth rig in the company’s fleet with MPD or MPD-equivalent technologies. The West Neptune is a seventh-generation ultra-deepwater Samsung 12,000 drillship built in 2014. The rig has a maximum drilling depth of upto 37,500 feet and can operate in water depths of 12,000 feet.
Zacks Rank and Key Picks
Currently, SDRL has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Hess Corp. (HES - Free Report) and Eni SpA (E - Free Report) . SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, while Eni carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company, with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lesser carbon footprint compared with other fossil fuel, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it capitalize on the mounting global demand in the future.