Seadrill Limited (NYSE: SDRL) ordered a newbuild jackup and secured a five year contract for the unit from Conoco Phillips (NYSE: COP), Dahlman Rose reports.
“The rig is scheduled to be completed at the end of the third quarter 2013 for a total project price of $530MM,” Dahlman Rose writes. “The five-year contract with ConocoPhillips is valued at approximately $680MM, implying a dayrate of $370K/d. The jackup is an advanced, ultra large, harsh environment, high-spec unit based on the Gusto MSC CJ70 150A design, Seadrill's West Elara has the same design and is expected to begin working in 4Q11 at $350K/d.
“Both of these units are now part of Seadrill's 75% owned subsidiary, North Atlantic Drilling Limited. We estimate the new unit could earn approximately $100MM in gross EBITDA in 2014.”
