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Seadrill Expands Backlog With New Rig Contracts in US Gulf & Angola
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Key Takeaways
SDRL won multiple drillship contracts across the Gulf of America and Angola, expanding its contract backlog.
SDRL said the West Neptune contract with LLOG Exploration adds about $48 million to its contract backlog.
Seadrill extended Sonangol Quenguela's Angola operations, keeping the rig active until Feb 2027.
Seadrill Limited (SDRL - Free Report) , a U.S.-based offshore drilling contractor, has secured multiple contracts for the drillships in its rig fleet. These contracts contribute to Seadrill’s backlog, enabling it to establish strong relationships with new and existing customers.
Seadrill mentioned that its West Neptune drillship has secured a four-month contract in the Gulf of America with LLOG Exploration. The contract is expected to start in direct continuation of the drillship’s current assignment. SDRL has also stated that this contract will add approximately $48 million to the company’s backlog. The West Neptune drillship is a seventh-generation ultra-deepwater dual activity drillship with a maximum drilling depth of up to 37,500 feet.
The second contract is for the Sevan Louisiana circular drillship in the Gulf of America. An undisclosed operator has hired the Sevan Louisiana drillship for a two-month assignment. The contract is expected to begin immediately after the drillship ends its assignment with Walter Oil and Gas. Notably, this deal marks the first deployment of Trendsetter’s well-intervention equipment in the region. This highlights a new technical capability being utilized in the Gulf of America, enhancing the efficiency of deepwater operations. The Sevan Louisiana drillship was built in 2013 and features a Sevan 650 design. It has a maximum drilling depth of 35,000 feet and can operate in water depths of up to 10,000 feet.
SDRL also mentioned a third deal for the Sonangol Quenguela drillship in Angola, Africa. This deal marks an extension of the drillship’s operations in Angola, as the operator exercised a five-month option to prolong its stay in the region by approximately 10 months. The drillship will continue its operations in Angola till February 2027. The Sonangol Quenguela is a seventh-generation ultra-deepwater drillship with prior operating experience in West Africa.
Seadrill mentioned that its ability to secure contracts in direct continuation of existing ones enables it to avoid white space, which is the time between two contracts when a rig remains idle, amid challenging market conditions. These deals enable the company to build a strong contract backlog into 2027 and beyond, ensuring revenue visibility in the future.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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Seadrill Expands Backlog With New Rig Contracts in US Gulf & Angola
Key Takeaways
Seadrill Limited (SDRL - Free Report) , a U.S.-based offshore drilling contractor, has secured multiple contracts for the drillships in its rig fleet. These contracts contribute to Seadrill’s backlog, enabling it to establish strong relationships with new and existing customers.
Seadrill mentioned that its West Neptune drillship has secured a four-month contract in the Gulf of America with LLOG Exploration. The contract is expected to start in direct continuation of the drillship’s current assignment. SDRL has also stated that this contract will add approximately $48 million to the company’s backlog. The West Neptune drillship is a seventh-generation ultra-deepwater dual activity drillship with a maximum drilling depth of up to 37,500 feet.
The second contract is for the Sevan Louisiana circular drillship in the Gulf of America. An undisclosed operator has hired the Sevan Louisiana drillship for a two-month assignment. The contract is expected to begin immediately after the drillship ends its assignment with Walter Oil and Gas. Notably, this deal marks the first deployment of Trendsetter’s well-intervention equipment in the region. This highlights a new technical capability being utilized in the Gulf of America, enhancing the efficiency of deepwater operations. The Sevan Louisiana drillship was built in 2013 and features a Sevan 650 design. It has a maximum drilling depth of 35,000 feet and can operate in water depths of up to 10,000 feet.
SDRL also mentioned a third deal for the Sonangol Quenguela drillship in Angola, Africa. This deal marks an extension of the drillship’s operations in Angola, as the operator exercised a five-month option to prolong its stay in the region by approximately 10 months. The drillship will continue its operations in Angola till February 2027. The Sonangol Quenguela is a seventh-generation ultra-deepwater drillship with prior operating experience in West Africa.
Seadrill mentioned that its ability to secure contracts in direct continuation of existing ones enables it to avoid white space, which is the time between two contracts when a rig remains idle, amid challenging market conditions. These deals enable the company to build a strong contract backlog into 2027 and beyond, ensuring revenue visibility in the future.
SDRL’s Zacks Rank and Key Picks
SDRL currently has a Zacks Rank #5 (Strong Sell).
Some top-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) . While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.