Drilling firm Seadrill says it will take a 37 day hit on earnings from its West Aquarius rig in order to adapt the semi-submersible unit for work off Canada.
The rig needs to be modified and repaired in order to meet Canadian regulations, as it looks to extend its contract with drilling partners for using the platform.
In order to meet the conditions required, Seadrill confirmed today it had agreed to not receive payment for 37 days during the mobilization period for the rig.
“This loss will negatively impact third quarter results,” the company said in a statement.
Negotiations are under way for an 18-month extension to the contract for the rig, which would take its use off Canada up to April 2017.
The new deal, worth $337million to the firm if approved, is due to be completed by the end of November.
Meanwhile the company is to sell its T-16 tender rig to Seadrill Partners, the limited liability company it set up to own and operate offshore rigs.
The deal will see Seadrill Partners buying the T-16, which started a five year contract with Chevron in Thailand last month, for around $107million.