NORWEGIAN drilling contractor Seadrill has signed an MOU with an undisclosed oil major to provide the in-build West Capricorn semi-submersible for a five-year contract for operations in “North America”.
The potential contract value for the five-year period is $919million, which includes a $30million mobilisation fee. There are two one-year contract extension options written into the memorandum.
Use of the term North America hints that the rig may be used for both US and Canadian work, thus narrowing down the field of client possibilities.
West Capricorn is currently under construction at Jurong Shipyard in Singapore. The unit will start its voyage to North American waters late next month, assuming no untoward delays. The contract is due to start in May next year.
West Capricorn will be the fourth rig of the proven Friede & Goldman ExD Millenium design that Seadrill has taken delivery of from the Jurong Shipyard since 2008.
Furthermore, the rig will be the first ultra-deepwater unit in the industry that is outfitted with a 7-ram blowout preventer.
The second contract is with Tullow. The term is one year and covers deployment offshore Ghana of the newbuild ultra-deepwater semi-submersible West Leo.
The potential contract revenue is $204million, including $18million for mobilisation. In addition, the rig can earn a daily performance bonus of up to 10%.
West Leo is currently also in-build at the Jurong yard with delivery scheduled for the end of January.
Contract start-up is expected in mid-April 2012.
West Leo will be the second unit of the Moss Maritime CS50 Mk II design that Seadrill has ordered.