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Seadrill (SDRL) Announces New Contracts for Two Drillships
SeadrillSeadrill(US:SDRL) Zacks Investment Researchยท2024-05-10 22:01

Core Insights - Seadrill Limited has announced new contract awards for its drillships, West Capella and West Neptune, indicating a positive outlook for the company's operations in the offshore drilling sector [1][2]. Contract Awards - The West Capella drillship has secured a one-well contract in South Korea, valued at approximately $32 million, with an estimated duration of 40 days starting in December 2024 [1]. - The West Neptune drillship has received a contract extension in the U.S. Gulf of Mexico, valued at approximately $86 million, extending its operations by six months starting in the September quarter of 2025 [2]. Technical Specifications - West Capella is a sixth-generation ultra-deepwater drillship with a maximum drilling depth of 37,500 feet and operational capabilities in water depths of 10,000 feet. It can accommodate 180 personnel [2][3]. - West Neptune is a seventh-generation ultra-deepwater drillship with similar maximum drilling depth capabilities and can operate in water depths of 12,000 feet [3]. Upgrades and Innovations - Seadrill plans to enhance the West Neptune drillship with managed pressure drilling (MPD) capabilities during scheduled out-of-service periods, making it the tenth rig in the fleet with such technology [3]. Industry Context - The energy sector shows promising opportunities with companies like SM Energy and Hess Corp. demonstrating strong production outlooks and significant resource discoveries, respectively [4]. - Eni, a global integrated energy company, is focusing on liquefied natural gas, which is expected to play a crucial role in the energy transition due to its lower carbon footprint [5].