Seadrill’s new rig deals of over $860 million lift total backlog to $3.1 billion

May 11, 2026, by Melisa Cavcic

Seadrill, an offshore drilling contractor, has secured a batch of rig assignments and extensions across the U.S. Gulf, Brazil, and Angola, with LLOG, a subsidiary of Harbour Energy, Brazil’s state-owned oil and gas giant Petrobras, and France’s energy giant TotalEnergies.

West Jupiter drillship; Source: Seadrill

Seadrill’s latest fleet status report shows the rig owner obtained multiple contract awards across the Americas and Africa, adding over $860 million to contract backlog since the previous report. As a result, the company’s total contract backlog now stands at $3.1 billion.

The 2008-built West Polaris drillship was awarded a three-year contract extension with Petrobras in Brazil. The deal is due to begin in January 2028, bringing approximately $480 million to the firm’s contract backlog.

The 2014-built West Neptune and the 2013-built West Vela drillships got work in the Gulf of America (U.S. Gulf of Mexico) with Harbour Energy’s LLOG, adding $260 million to the offshore drilling player’s contract backlog.

While the first drillship was given a 365-day contract extension, with operations scheduled to start in October 2026, the second rig was hired on a program with a duration of 270 days and an expected commencement in September 2026.

The 2015-built Sonangol Quenguela drillship landed a contract extension with TotalEnergies in Angola for an estimated 480 days, committing the rig through July 2028. In addition, the 2015-built West Carina drillship extended its current contract with Petrobras in Brazil into June 2026.

Seadrill reported a net loss of $7 million and adjusted EBITDA of $97 million for the first quarter of 2026. At quarter-end, the company had gross principal debt of $625 million and $329 million in cash, cash equivalents, and restricted cash, for a net debt position of $296 million.

The use of cash during the first quarter of 2026 included $51 million for capital additions and long-term maintenance, which was impacted by payments for contract preparation activities for West Jupiter and West Capella, as well as the timing of working capital.

Both rigs began operations late in the first quarter of 2026, with mobilization revenue due to be collected in the second quarter of 2026.

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While Seadrill’s total operating revenues range increased to $1.43 – $1.48 billion from the previous $1.40 – $1.45 billion, excluding $50 million of reimbursable revenues, the adjusted EBITDA range rose to $370 – $420 million from $350 – $400 million. The firm maintained capital expenditure and long-term maintenance range at $200 – $240 million.

Samir Ali, Seadrill’s President and CEO, commented: “Seadrill delivered a solid quarter financially and operationally, including the completion of two major projects ahead of schedule and on budget. These achievements, together with recent commercial success, enhance visibility toward higher earnings and free cash flow in the second half of 2026 and into 2027.

“Increasing demand for deepwater rigs is supported by multiple customers across multiple regions, and with a renewed global focus on energy security, we see growing tailwinds into 2027 to drive positive dayrate momentum.”