Seadrill said on Dec. 29 that it signed a three-year contract extension with Saudi Aramco for the AOD III jackup rig, corresponding to a rate of $102,740 per day, according to a Reuters calculation.
Following the announcement, Seadrill's CEO Per Wullf told Reuters that opex for the rig ranged between $60,000 and $65,000 per day, including overhead costs but excluding interest payments and debt amortization.
Wullf said the rig unit has operated very well for Aramco, and that the rate obtained in the contract extension reflects what can be obtained for an outperforming unit.
He also said the market is difficult, and that 2017 will be a rough year. Wullf said that in the current market, it is generally easier to win extensions of existing deals than to obtain new contracts.
Recommended Reading
US Drillers Add Most Oil, Gas Rigs in a Week Since September
2024-03-15 - The oil and gas rig count, an early indicator of future output, rose by seven to 629 in the week to March 15.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2024-02-02 - Baker Hughes said U.S. oil rigs held steady at 499 this week, while gas rigs fell by two to 117.
US Drillers Cut Oil, Gas Rigs for the First Time in Three Weeks
2024-03-08 - The oil and gas rig count, an early indicator of future output, fell by seven to 622 in the week to March 8, the lowest since Feb. 16.
US Drillers Add Oil, Gas Rigs for Second Week in a Row
2024-01-26 - The oil and gas rig count, an early indicator of future output, rose by one to 621 in the week to Jan. 26.