Seadrill has extended a contract for its Libongos drillship in Angola for another 12 wells, scoring a $402,500 per day rate.
The company holds the drillship via the Sonadrill joint venture with Sonangol.
The day rate marks a significant increase for Sonadrill. It is currently collecting $228,800 per day under a contract with Eni.
The total value of the contract is $327 million, Seadrill said, including additional services. The work is due to start in the fourth quarter of this year and will run for around 25 months.
“Sonadrill remains strategically important for the development of the Angolan oil and gas sector,” said Seadrill CEO Simon Johnson.
“Sonadrill is the number one rig operator in Angola and this new contract will generate significant free cash flow for the joint venture which will ultimately flow to Seadrill and Sonangol as shareholders.”
The joint venture has three drillships. Seadrill has provided the West Gemini and Sonangol provides the Quenguela and Libongos. Seadrill manages and operates the units on behalf of the joint venture.
According to Seadrill’s most recent fleet status report, the Libongos is under contract in Angola to an undisclosed company. The current rig contract began in December 2020 and will end this month.