Seadrill picks up two three-year jack-up extensions in Middle East
- Business & Finance
Offshore drilling contractor Seadrill has secured a three-year contract for each of the AOD II and AOD III jack-up rigs.
Seadrill said on Tuesday that the contracts were in direct continuation of their current contract and were expected to be approximately $98 million and $101 million respectively.
The rigs are owned by Asia Offshore Drilling (AOD), which is a partnership venture between Mermaid and Seadrill where Mermaid has 33.76 percent and Seadrill has a 66.24 percent stake.
The company did not say which firm awarded the two contracts, but it is worth noting that both rigs in question have been working for Saudi Aramco since 2013. Mermaid also said in a separate statement that the rigs would be working for ‘the same reputable client in the Middle East’ they have been working for since 2013.
It is worth reminding that Seadrill received a three-year contract extension from Saudi Aramco for the AOD III jack-up back in December 2016. The extension is supposed to expire at the end of December 2019.
This extension followed a three-year extension for the AOD II announced in July 2016, which was set to expire in July 2019.
According to data provided by VesselsValue, after the extension for the AOD II expired in July, Saudi Aramco extended its deal twice, and its most recent extension is set to end on April 14, 2020.
Also, Seadrill won a three-year contract extension for AOD’s third jack-up, the AOD I, back in March 2019. According to Mermaid, the rig is working for the same client as the other two rigs.
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