NADL secures 10 year contract extensions for jack-up rig pair with ConocoPhilips

North Atlantic Drilling Ltd (NADL) has scored two 10-year jack-up rig contracts with ConocoPhilips worth an estimated $1.4bn.

A majority owned subsidiary of Seadrill, which faces a possible Chapter 11 bankruptcy protection filing, the NADL jack-up rigs West Elara and West Linus secured 10-year long contracts with ConocoPhillips Skandinavia.

The West Elara contract extension starts from October this year and NADL has agreed to a day rate adjustment on the existing contract on the rig equivalent to a $58m reduction. Between October 2017 and March 2020 rig is on a fixed day rate worth a total of $160m, and then till October 2027 an indexed rate which the company expects to provide an estimated $530m in revenues.

Meanwhile the contract for the West Linus has been extended from May 2019 to end 2028 at an indexed day rate estimated to contribute $706m.

Posted 11 April 2017

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Marcus Hand

Editor, Seatrade Maritime News

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