Seadrill wins rig extension

More work: for West Leo off West Africa

SEADRILL

Steve Marshall

 17 January 2013 09:17 GMT

Seadrill has secured a contract extension worth around $450 million from Tullow Oil for the use of its ultra-deepwater semi-submersible rig West Leo for work off West Africa.

The British independent has now exercised its option to extend the charter from May 2016 to May 2018, bringing the total estimated contract value to $1.13 billion.

The rig has been working for Tullow off Ghana at a dayrate of $525,000 but this will rise to $625,000 when a new three-year contract period kicks in in May this year. The latest deal yields a dayrate of around $616,000.

The unit is expected to remain in the West Africa play until the expiry of the extended contract.

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