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New contracts for Seadrill unit

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Seadrill’s West Gemini drillship

Seadrill Limited, the Bermudian-based offshore drilling company, has announced new contracts worth more than $260 million to the company.

A contract has been secured by Sonadrill Holding Ltd, the company’s 50:50 joint venture with an affiliate of Angolan-based Sonangol EP.

Sonadrill has secured a ten-well contract with options for up to eight additional wells in Angola for the West Gemini drillship.

Seadrill said total contract value for the firm portion of the contract was expected to be approximately $161 million, inclusive of mobilisation revenue and additional services, with further meaningful revenue potential from a performance bonus.

Commencement is expected in Q4 2022 with a firm-term of approximately 18 months, in direct continuation of the West Gemini's existing contract.

The West Gemini is the third drillship to be bareboat chartered into Sonadrill, along with two Sonangol-owned units, the Sonangol Quenguela and Sonangol Libongos.

Seadrill will manage and operate the units on behalf of Sonadrill.

Simon Johnson, Seadrill's chief executive officer (File photograph)

Simon Johnson, Seadrill's chief executive officer, said: “Our strategic partnership with Sonadrill is critical to the development of the Angolan oil and gas sector and to Seadrill's position as the number one rig operator in Angola.

Seadrill has also secured contract awards for the West Neptune and Sevan Louisiana.

The West Neptune has secured a four-well extension with two one-well options with LLOG Exploration Offshore, LLC in US Gulf of Mexico.

The Sevan Louisiana has secured a three-well extension with Talos Production Inc in US Gulf of Mexico.

Mr Johnson said: "It's encouraging to see so much activity in the US Gulf of Mexico right now."

NAT aims for debt freedom

Short-term charter rates for its million-barrel capacity Suezmax oil tankers are on the upswing, Bermudian-based Nordic American Tankers Ltd reports.

The company said: “We have recently fixed three ships at rates ranging from $40,000 to $55,000 per day with a duration from 30 up to 70 days.”

NAT said a large part of its fleet was operating in the short-term spot market.

The company added: “Based on current rates, NAT would generate more than $200 million on an annualised basis above and beyond the daily operating costs of $8,000 per ship.

“In this scenario, NAT can become debt free in a year or two, just as it has been in the past. We expect the upswing to continue.”

NAT said it was continuing to execute on its plan of selling vessels when they come to the end of their lives. It added: “Recently prices are up and we have sold a few vessels.”

Four Suezmaxes have been sold by NAT, including a vessel delivered to its new owners on April 12. The sales have generated a cash injection of about $60 million to NAT.

In light of recent vessel sales, the company said, it has recorded an impairment charge of $51.9 million on its accounts for 2021.

Time charter commenced

Bermudian-based C Transport Maritime Ltd has entered into a time charter contract for the m/v Philadelphia, a Newcastlemax dry bulk vessel, with a subsidiary of Athens-based Diana Shipping Inc.

The gross charter rate is $26,000 per day, minus a five per cent commission paid to third parties, Diana said, for a period until minimum February 1, 2024 up to maximum April 15, 2024.

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Published April 28, 2022 at 7:23 am (Updated April 28, 2022 at 7:23 am)

New contracts for Seadrill unit

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