Seadrill agrees jack-up rig deal in Saudi

West-CallistoSeadrill has signed a US$184mn contract with Saudi Aramco for the employment of its jack-up rig West Callisto offshore Saudi Arabia.

The contract duration is a minimum of three years plus an option for a one-year extension, Seadrill said in a statement.

The potential revenue for the three-year period is approximately US$164mn plus a US$20mn mobilisation fee to cover various upgrades, dry tow vessel expenses and dayrate in the mobilisation period.

Alf Thorkildsen, CEO in Seadrill Management AS, commented: “We are delighted to have signed our first contract with Saudi Aramco for operation in Saudi Arabia. This award complements our growing jack-up operations in the region which will increase from two to five units this year. We continue to see a strong demand for premium jack-up rigs and expect to improve our earnings visibility for this asset class going forward."

The West Callisto is currently operating in Southeast Asia and is scheduled to finalize its existing work scope in August 2012. The unit will subsequently commence its transit to the Middle East and is scheduled to start operations for Aramco in September 2012.

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