Seadrill ltd and its Deepwater Peers have a Big Week

Seadrill Ltd. and its Deepwater Peers Have a Big Week

Photo credit: Seadrill

Ultra-deepwater market

The first quarter was the worst quarter for the ultra-deepwater rig

market since the financial crisis.

Ultra-deepwater market

Only seven ultra-deepwater rig years were contracted in the quarter.

Ultra-deepwater market

This quarter is looking much better.

Ultra-deepwater market

Last week alone nearly double the number of rig

years were contracted.

Ultra-deepwater market

Let’s take a closer look at the ultra-deepwater rig

market’s big week.

Seadrill signs a five-year deal

On June 2, Seadrill signed a $1.1 billion contract with Total for its West Jupiter newbuild drillship.

Photo credit: Seadrill

SeadrillContract details:• Five-year, $1.1 billion contract with Total.• West Jupiter newbuild ultra-deepwater drillship

will head to Nigeria for offshore work once complete.

• Vessel is expected to be delivered in August. • Dayrate is worth around $600,000 per day.

Ocean Rig signs a six well dealOn June 4, Ocean Rig signed a $165 million contract with

Noble Energy for its Eirik Raude semi-submersible drilling rig.

Photo credit: Ocean Rig

Ocean RigContract details:• Minimum six-well program that’s expected to

last 260 days.• Eirik Raude is a semi-submersible drilling rig that

will head to the Falkland Islands for offshore work with Noble Energy and Premier Oil.

• Vessel is expected to commence operations in the first quarter of 2015.

• Dayrate is about $560,000 per day.

Ocean Rig signs a six-year deal

On June 5, Ocean Rig signed a $1.3 billion contract with Total for its Skyros drillship.

Photo credit: Ocean Rig

Ocean RigContract details:• Six-year, $1.3 billion contract with Total.• Skyros ultra-deepwater drillship will head to

Angola for offshore work. • Vessel is expected to commence operations in

the third quarter of 2015.

Rowan signs a two-year deal

On June 6, Rowan signed a $425 million contract with Freeport-McMoRan for its Relentless drillship.

Photo credit: Rowan Companies

RowanContract details:• Two-year, $425 million contract with Freeport-

McMoRan.• Relentless ultra-deepwater drillship will head to

the Gulf of Mexico for offshore work. • Vessel is expected to commence operations in

the third quarter of 2015.• Final drillship under its current construction

program.

Investor takeaway:

• Last week’s slew of long-term contracts at solid dayrates is a very positive sign for the deepwater industry.

Not only that but these awards are spread across the globe.

It shows that drillers like Total and Freeport-McMoRan aren’t giving up on the deepwater anytime soon. Instead, drillers will continue to seek top drillships to search

for oil in the deepest parts of the ocean.

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