North Atlantic Drilling, a subsidiary of Seadrill, has secured 10-year contracts for its West Elara and West Linus jack-ups with ConocoPhillips.
The total additional backlog for the new contract awards is estimated at $1.4 billion, excluding performance bonuses.
The work will be carried out in the Greater Ekofisk Area.
The new West Elara contract which is expected to commence in October 2017 includes a period of fixed dayrates until March 2020 and contributes approximately $160 million of contract backlog. A market indexed rate is applicable thereafter until October 2027 which the Company believes will contribute an estimated $530 million of contract backlog.
The contract on West Linus has been extended from May 2019 until the end of 2028 at a market indexed dayrate, which the Company believes will contribute an estimated $706 million of contract backlog.
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