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Seadrill Limited Capital/Financing Update 2022
9186_rns_2022-11-30_75d976b2-c7b9-4a4f-a0cb-9426859a9e65.pdf
Capital/Financing Update
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Seadhill NYSE & OSE, SDRL
Fleet Status Report
November 30, 2022
WEST TELLUS
Recent Commercial Activity
Seadrill
Fleet Status Report, November 30, 2022
New Contracts and Extensions
| Libongos | Sonadrill (50:50 JV between Seadrill and Sonangol) secured a 25-month extension for Libongos to its current operations in Angola. The extension adds approximately $327 million (incl. of additional services) to the Sonadrill backlog. |
|---|---|
| Other Events | |
| Saudi Arabia Business | Seadrill completed the sale of the legal entities that own and operate seven jack-up rigs (AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda) in the Kingdom of Saudi Arabia on October 18, 2022, which led to a backlog adjustment of $711 million. |
| Sevan Louisiana | The Sevan Louisiana is now expected to complete operations under its current contract at the end of December 2023 due to an updated well schedule, adding $50 million to backlog. |
| West Phoenix | The West Phoenix is now expected to complete operations under its current contract in March 2024 due to an updated well schedule, adding $39 million in backlog. |
| West Gemini | The West Gemini commenced follow-on operations with TotalEnergies at a higher dayrate in Angola. The firm term of this contract is expected to keep the rig busy until the fourth quarter of 2024. |
| West Saturn | The West Saturn commenced operations with Equinor in late October, the firm term of which is expected to run through to October 2026. |
| West Carina | The West Carina commenced operations with Petrobras in mid-November and the contract is expected to run through to October 2025. |
| West Tellus | The West Tellus completed operations with Shell in early September and started preparations for its long-term campaign with Petrobras in Brazil. |
| West Linus | The West Linus finished operations with ConocoPhillips in September and was subsequently handed back to SFL. |
| West Hercules | The West Hercules completed operations with Equinor in late October and is expected to be redelivered to SFL in December. |
| West Carina | |
| West Tellus | |
| West Jupiter | A dayrate escalation has been applied to the West Carina, West Tellus and West Jupiter, which are contracted with Petrobras in Brazil. |
As at November 30, 2022, total order backlog for Seadrill Limited was $2.4 billion¹
Footnotes: Commercial Activity since August 31, 2022, the date of release of our prior Fleet Status Report; (1) Backlog definition can be found on page 8 of this Fleet Status Report
Owned Rigs – Floaters – Contract Status
Seadril
Fleet Status Report, November 30, 2022
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| Sevan Louisiana | 6G-SS | 2013 | 10,000 | 40,000 | Talos | US GoM | Aug-22 | Dec-23 | Undisclosed | |
| West Neptune | 7G-DS | 2014 | 12,000 | 40,000 | LLOG | |||||
| LLOG (Options) | US GoM | |||||||||
| US GoM | Sep-21 | |||||||||
| Jan-24 | Dec-23 | |||||||||
| Jun-24 | Undisclosed | |||||||||
| West Gemini | 6G-DS | 2010 | 10,000 | 35,000 | TotalEnergies | |||||
| TotalEnergies (Options) | Angola | |||||||||
| Angola | Nov-22 | |||||||||
| Nov-24 | Oct-24 | |||||||||
| Jul-25 | 284,800 | |||||||||
| 404,800 | A, B | |||||||||
| West Carina | 7G-DS | 2015 | 12,000 | 40,000 | Petrobras | Brazil | Nov-22 | Oct-25 | 254,269 | A, C, F |
| West Jupiter | 7G-DS | 2014 | 12,000 | 40,000 | Contract Prep. | |||||
| Petrobras | - | |||||||||
| Brazil | - | |||||||||
| Dec-22 | - | |||||||||
| Oct-25 | - | |||||||||
| 253,888 | A, D, F | |||||||||
| West Tellus | 7G-DS | 2013 | 12,000 | 40,000 | Contract Prep. | |||||
| Petrobras | - | |||||||||
| Brazil | - | |||||||||
| Dec-22 | - | |||||||||
| Dec-25 | - | |||||||||
| 238,702 | A, E, F | |||||||||
| West Saturn | 7G-DS | 2014 | 12,000 | 40,000 | Equinor | |||||
| Equinor (Options) | Brazil | |||||||||
| Brazil | Oct-22 | |||||||||
| Oct-26 | Oct-26 | |||||||||
| Sep-30 | Undisclosed | |||||||||
| Undisclosed | A, F, G | |||||||||
| West Eclipse | 6G-SS | 2011 | 10,000 | 40,000 | Cold Stacked | Namibia | - | - | - |
Notes A. Dayrate partly received in foreign currency. Fluctuations in exchange rates may result in an adjustment to the dayrate. B. Dayrate excludes potential performance incentive. TotalEnergies contract with Sonadril, a 50:50 JV between Seadril and Sonangol, and Seadril manages and operates on behalf of the JV. Dayrate is received by Sonadril, and a management fee is received by Seadril from Sonadril. C. In addition to the dayrate a mobilization fee of $15m was included in the award. Dayrate includes additional services. D. In addition to the dayrate a mobilization fee of $10m was included in the award. Dayrate includes additional services. E. In addition to the dayrate a mobilization fee of $14m was included in the award. Dayrate includes additional services. F. Drilling contract includes an escalation mechanism. G. In addition to the dayrate a mobilization fee was included in the award. Dayrate excludes potential performance incentive. Optional period comprises four options of up to one year each.
Footnote: Updates in bold
Owned Rigs – Jack-ups – Contract Status
Seadril
Fleet Status Report, November 30, 2022
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| West Castor | Premium JU2000E | 2013 | 400 | 30,000 | QatarGas | Qatar | Dec-19 | Aug-23 | Undisclosed | A |
| West Tucana | Premium JU2000E | 2013 | 400 | 35,000 | Shell | Qatar | Nov-20 | Jun-24 | Undisclosed | A |
| West Telesto | Premium JU2000E | 2013 | 400 | 30,000 | QatarGas | Qatar | Mar-20 | May-25 | Undisclosed | A |
| West Prospero | Premium KFELS B | 2007 | 400 | 30,000 | Cold Stacked | Malaysia | – | – | – |
Notes A. Contracts with Gulfdrill, a 50:50 JV between Seadrill and Gulf Drilling International ("GDI"). Dayrate is received by Gulfdrill, and a bareboat charter rate is received by Seadrill from Gulfdrill.
Footnote: Updates in bold
Owned Rigs – Harsh Environment – Contract Status
Seadnil
Fleet Status Report, November 30, 2022
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| West Phoenix | 6G-SS | 2008 | 10,000 | 30,000 | Vår Energi | Norway | Aug-21 | Mar-24 | 359,000 | A, B |
| West Elara | HE Jack-up, CJ70 | 2011 | 450 | 40,000 | ConocoPhillips | Norway | May-18 | Mar-28 | Market Indexed Rate | A, C |
Notes A. Dayrate partly received in foreign currency. Fluctuations in exchange rates may result in an adjustment to the dayrate. B. In addition to the dayrate a mobilization fee was included in the award. Drilling contract includes an escalation mechanism. C. Dayrate excludes potential performance incentive.
Footnote: Updates in bold
Seadnil
Fleet Status Report, November 30, 2022
Owned Rigs – Contract Coverage
Footnotes: (1) Contracted through Sonadrill; (2) Contracted through Gulfdrill; (3) Contracted utilization only reflects firm term, and 2022 is only based on the remaining days from November 30, 2022
Managed Rigs – Contract Status and Contract Coverage
Seadnil
Fleet Status Report, November 30, 2022
Contract Status
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| Sonangol | ||||||||||
| Quenguela | 7G-DS | 2019 | 12,000 | 40,000 | TotalEnergies | Angola | Mar-22 | Nov-23 | 214,500 | A, B |
| TotalEnergies (Options) | Angola | Dec-23 | Oct-24 | 310,500 | A, B | |||||
| Libongos | 7G-DS | 2019 | 12,000 | 40,000 | Undisclosed | Angola | Dec-20 | Dec-22 | 228,800 | A |
| Jan-23 | Feb-25 | 420,500 | A, C |
Notes A. Dayrate includes additional services. Dayrate partly received in foreign currency. Fluctuations in exchange rates may result in an adjustment to the dayrate. B. In addition to the dayrate a lump sum fee was included in the award. Dayrate excludes potential performance incentive. C. Dayrate excludes potential performance incentive.
Contract Coverage
| 2022 | 2023 | 2024 | 2025 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rig Name | Asset Class | N | D | J | F | M | A | M | J | J | A | S | O | N | D | J | F | M | A | M | J | J | A | S | O | N | D | ||||||
| Quenguela | BE Floater | TotalEnergies | |||||||||||||||||||||||||||||||
| Libongos | BE Floater | Undisclosed Client |
Form
Options
Contract Prep.
Available
Footnote: Updates in bold
Disclaimer and Definitions
Seadril
Fleet Status Report, November 30, 2022
About Seadrill
Seadrill Limited (“Seadrill” or the “Company”) (NYSE & OSE: SDRL) is a leading offshore drilling contractor utilizing advanced technology to unlock oil and gas resources for clients across harsh and benign locations around the globe. Seadrill’s high-quality, technologically-advanced fleet spans all asset classes allowing its experienced crews to conduct operations across geographies, from shallow to ultra-deep-water environments.
Disclaimer, and No Unauthorized Publication or Use
The information contained in this fleet status report (the “Information”) is as of the date of the report only and is subject to change without notice to the recipient. Seadrill Limited assumes no duty to update any portion of the Information. Neither seadrill limited nor its affiliates make any express or implied warranties (including, without limitation, any warranty of merchantability or fitness for a particular purpose or use) regarding the Information, which is provided “as is.” Neither Seadrill Limited nor its affiliates will be liable to any recipient or anyone else for any inaccuracy, error or omission, regardless of use, in the Information or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom. All information provided by Seadrill Limited in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Seadrill Limited.
Order Backlog
Backlog includes all firm contracts at the contractual operating dayrate multiplied by the number of days remaining in the firm contract period. For contracts which include a market indexed rate mechanism, the Company utilizes the current applicable dayrate multiplied by the number of days remaining in the firm contract period. Order backlog includes management contract revenues and lease revenues from bareboat charter arrangements. Order backlog excludes revenues for mobilization, demobilization and contract preparation or other incentive provisions and excludes backlog relating to non-consolidated entities.
Client Contract Duration, Timing and Dayrates and Risks Associated with Operations
The duration and timing (including both starting and ending dates) of the client contracts are estimates only, and client contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Seadrill Limited. Furthermore, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.), including some beyond the control of Seadrill Limited. Our client contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in previous prospectus. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, or shipyards. Furthermore, mutually agreed (priced) options are not included in the contract status or the contract coverage (nor in the calculation of utilization).