Seadrill (NYSE:SDRL) has been awarded two new contracts by BHP Billiton Petroleum (NYSE:BHP) for the Offshore Vigilant jackup drilling rig in Trinidad and the Offshore Resolute jackup drilling rig in Vietnam.
The three well drilling assignment for Offshore Vigilant is expected to take 150 days, and the contract value is approximately US$20 million. The two well assignment for Offshore Resolute is expected to take 90 days, and the contract value is approximately US$11 million.
Commencement of operations under the new contract for Offshore Vigilant is scheduled for the third quarter 2011, in direct continuation of existing contract and mid May 2011 for Offshore Resolute. The contract for Offshore Vigilant includes options for an additional four wells with anticipated duration of 200 days.
Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, says, "This is Seadrill's first assignment for BHP. We consider this as an excellent opportunity to develop a strong relationship with BHP, one of the world's largest natural resource companies. Representing a total contract value of US$31 million, the two assignments improve the earnings visibility for our jack-ups in 2011 at market rates."