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Seadrill Limited Investor Presentation 2023
9186_rns_2023-05-23_363d520d-8f4e-4e23-bcee-570dfe9f2d47.pdf
Investor Presentation
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Fleet Status Report
May 23, 2023
Recent Commercial Activity
| New Contracts and Extensions | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| West Castor1 | The West Castor secured an extension to its current operations in Qatar. The rig is now expected to remain operating under this contract until 2nd Quarter 2026. | ||||||||
| Other Events | |||||||||
| West Vela | The West Vela commenced operations with BP in the US GoM in mid-April. The firm term is expected to run through to August 2023. |
||||||||
| West Phoenix | The West Phoenix is now expected to complete operations under its current contract to August 2024 due to an updated well schedule, which has added additional \$59 million in backlog. |
As of May 23, 2023, total order backlog for Seadrill Limited was \$2.6 billion2
Footnotes: Commercial activity since April 5, 2023, the date of release of our prior Fleet Status Report (does not include Aquadrill commercial activity prior to April 3, 2023); (1) The rig is on a bareboat charter 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. (2) Backlog definition can be found on page 8 of this Fleet Status Report, 2
Owned Rigs – Floaters – Contract Status
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US\$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| West Polaris | 6G-DS | 2008 | 10,000 | 35,000 | ONGC | India | Dec-22 | Sep-23 | Undisclosed | A, J |
| Sevan Louisiana | 6G-SS | 2013 | 10,000 | 40,000 | Talos | US GoM | Aug-22 | Dec-23 | Undisclosed | |
| West Auriga | 7G-DS | 2013 | 12,000 | 40,000 | BP | US GoM | Mar-23 | Feb-24 | Undisclosed | B, J |
| West Vela | 7G-DS | 2013 | 12,000 | 40,000 | Beacon BP Beacon Beacon (Options) |
US GoM | Jan-23 Apr-23 Aug-23 Feb-24 |
Apr-23 Aug-23 Feb-24 Dec-24 |
Undisclosed | B, J |
| West Capella | 6G-DS | 2008 | 10,000 | 35,000 | Undisclosed Undisclosed Undisclosed (Options) |
East Africa Indonesia Indonesia |
Apr-23 Jul-23 Jun-24 |
May-23 Jun-24 Nov-24 |
Undisclosed | A, K |
| West Neptune | 7G-DS | 2014 | 12,000 | 40,000 | LLOG | US GoM | Sep-21 | Sep-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 |
H, I |
Owned Rigs – Floaters – Contract Status (Continued)
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US\$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| West Carina | 7G-DS | 2015 | 12,000 | 40,000 | Petrobras | Brazil | Nov-22 | Oct-25 | 254,269 | C, F, H |
| West Jupiter | 7G-DS | 2014 | 12,000 | 40,000 | Petrobras | Brazil | Dec-22 | Oct-25 | 253,888 | D, F, H |
| West Tellus | 7G-DS | 2013 | 12,000 | 40,000 | Petrobras | Brazil | Jan-23 | Jan-26 | 238,702 | E, F, H |
| West Saturn | 7G-DS | 2014 | 12,000 | 40,000 | Equinor Equinor (Options) |
Brazil Brazil |
Oct-22 Oct-26 |
Oct-26 Sep-30 |
Undisclosed Undisclosed |
F, G, H, J |
| West Eclipse | 6G-SS | 2011 | 10,000 | 40,000 | Cold Stacked | Namibia |
Notes
A. Managed and operated on behalf of Seadrill by Vantage Holdings International
B. Managed and operated on behalf of Seadrill by Diamond Offshore Drilling, Inc.
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.
H. Dayrate partly received in foreign currency. Fluctuations in exchange rates may result in an adjustment to the dayrate.
I. Dayrate excludes potential performance incentive. TotalEnergies contract with Sonadrill, a 50:50 JV between Seadrill and Sonangol, and Seadrill manages and operates on behalf of the JV. Dayrate is received by Sonadrill, and a management fee is received by Seadrill from Sonadrill.
J. Dayrate includes additional services.
K. Drilling contract includes additional services at the discretion of the operator.
Owned Rigs – Harsh Environment – Contract Status
| 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 | Aug-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 |
| West Aquarius | 6G-SS | 2009 | 10,000 | 35,000 | Warm Stacked | Norway | - | - | - | D |
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.
D. Managed and operated on behalf of Seadrill by Vantage Holdings International
Owned Rigs – Jack-ups – Contract Status
| 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 | Apr-26 | Undisclosed | A |
| West Tucana | Premium JU2000E |
2013 | 400 | 35,000 | Shell QatarGas (Options) |
Qatar | Nov-20 Jun-24 |
Jun-24 Aug-25 |
Undisclosed | A, B |
| 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.
B. Current contract with Shell is novated from QatarGas
Owned Rigs – Tender-Assist Rigs– Contract Status
| Rig Name | Type | Built | Water Depth (Ft.) | Drilling Depth (Ft.) | Client / Status | Location | Contract Start | Contract End | Dayrate (US\$) | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| T-15 | Barge | 2013 | 6,500 | 30,000 | Undisclosed Undisclosed (Options) |
Thailand Thailand |
Jan-23 Jan-24 |
Jan-24 Feb-24 |
Undisclosed | A |
| T-16 | Barge | 2013 | 6,500 | 30,000 | Cold Stacked | Indonesia | - | - | - | |
| West Vencedor | Semi | 2008 | 6,500 | 35,000 | Cold Stacked | Malaysia | - | - | - |
Notes
A. Managed and operated on behalf of Seadrill by Energy Drilling Management.
Owned Rigs – Contract Coverage
Managed Rigs – Contract Status and Contract Coverage
| 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 TotalEnergies (Options) |
Angola Angola |
Mar-22 Dec-23 |
Nov-23 Oct-24 |
214,500 310,500 |
A, B A, B |
|||||
| Libongos | 7G-DS | 2019 | 12,000 | 40,000 | Undisclosed | Angola | Dec-20 | Feb-25 | Undisclosed Undisclosed |
A A, C |
Notes
A. Drilling contract 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
| 2023 2024 |
2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quenguela | BE Floater | J J J A S O N D J F M A M J J J A S O 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 J F M A M J J A S O N D J F M A M J | ||||||||||||||||||||||||||||||||||||||||
| Libongos BE Floater | ||||||||||||||||||||||||||||||||||||||||||
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).