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Seadrill culls $1.1bn of Petrobras rig contract extensions from orderbook

Seadrill culls $1.1bn of Petrobras rig contract extensions from orderbook
Seadrill has removed $1.1bn worth of extension contracts with embattled Brazilian state-oil and gas firm Petrobras from its orderbook.

Seadrill announced in November that Petrobras had approved contract extensions for its ultra-deepwater semi-submersibles the West Taurus and West Eminence with firm periods of three years and potential revenues of $1.1bn.

“Due to recent developments within Petrobras, the company no longer believes the contracts will be concluded in the timeframe or on the previously approved commercial terms,” the company said. As a result the $1.1bn in potential revenues has been removed from its orderbook.

“Seadrill continues to work with Petrobras and its partners to find a mutually agreeable commercial solution,” it said.

However, contract awards from Petrobras on the Libra Field for the ultra-deepwater drillships the West Tellus and West Carina, announced at the same time have already been signed and expected to start in the second quarter of the year.

The contracts also had firm periods of three years and potential revenues of $1.1bn.