Street Calls of the Week
HAMILTON, Bermuda - Seadrill Limited (NYSE:SDRL), a $1.81 billion market cap offshore drilling contractor with $1.29 billion in annual revenue, announced Monday that Sonadrill, its 50:50 joint venture with Sonangol E.P., has secured two drilling contracts for operations offshore Angola. According to InvestingPro data, the company maintains a FAIR financial health score, reflecting its stable operational position in the offshore drilling market.
The West Gemini drillship has been awarded a contract with Sonangol Exploração & Produção for an estimated duration of 284 days, expected to commence in late 2025 or early 2026.
Additionally, the Sonangol Libongos drillship received a contract from Azule Energy Angola with an estimated firm term of 525 days, plus priced options for extension. This program is scheduled to begin in the third quarter of 2025, directly following completion of its current contract.
Sonadrill currently operates three drillships: the Seadrill-owned West Gemini and two Sonangol-owned units, the Sonangol Libongos and Sonangol Quenguela. Under the arrangement, Seadrill earns management fees for providing operational and technical support to the joint venture.
The new contracts position the joint venture for continued operations in Angola’s offshore sector, extending its presence in the region’s drilling market.
These contract awards come as offshore drilling activity continues in Angola, one of Africa’s largest oil producers, despite global industry challenges.
The information is based on a company press release statement.
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