April 16, 2013 / 7:51 PM / in 5 years

Seadrill gets $662 mln, 3-yr contract for new drillship

OSLO, April 16 (Reuters) - Offshore drilling firm Seadrill secured a three-year, $662 million contract from LLOG Bluewater Holdings LLC for use of its newly built West Neptune drillship, it said on Tuesday.

The vessel, to be delivered from Samsung Heavy Industries in June 2014, will be employed in the Gulf of Mexico and Bluewater will hold an option for a one-year extension.

The deal is for a day rate of just over $600,000 in the first three-year period, Reuters calculations show, in the middle of the industry’s prevailing price range of $550,000-$650,000 for ultra-deepwater units.

However, its duration is well beyond the usual, 12-18 month deals drilling firms generally sign.

Seadrill, controlled by Norwegian-born shipping tycoon John Fredriksen, is the world’s second-biggest drilling firm by market capitalisation. (Reporting by Balazs Koranyi)

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