Seadrill announces joint venture with Gulf Drilling International

Seadrill refers to the announcements made on 1 May 1 2019 in connection with the award of  drilling contracts by Qatar Petroleum to Gulf Drilling International (GDI).

Seadrill and GDI have entered into a 50:50 joint venture, GulfDrill, which will initially manage and operate five premium jackups in Qatar with Qatar Petroleum commencing throughout 2020.

The five firm well-based contracts will have staggered commencements throughout 2020 with initial terms concluding in 2023 and 2024 respectively. The total contract value is expected to be $656 million (including mobilization fees). Each contract has five single well options which could add up to an estimated 13.7 cumulative years of term and an additional contract value of $700 million.

GulfDrill will initially bareboat charter the West Telesto and West Castor from Seadrill and has secured bareboat charters for three additional units from a third-party shipyard.

“We are excited to establish a significant presence in an important jackup market and to partner with GDI,” Anton Dibowitz, CEO of Seadrill, said. “GulfDrill will give us the opportunity to improve our access to a market that is expected to show significant growth over the next years and strengthen our relationship with Qatar Petroleum.”