Seadrill Partners says rig settlement to hit Q3 results

|About: Seadrill Limited (SDRL)|By:, SA News Editor

Seadrill Partners (SDRL -2.6%) says Q3 results will be negatively impacted by a settlement where it agreed to non-payment for 37 days during the recent mobilization period as a result of the time required for the West Aquarius rig to complete modifications and repairs in order to meet Canadian regulatory requirements.

SDRL also says it is negotiating an 18-month contract extension for the rig off Canada's east coast until April 2017, which it expects to be executed by Nov. 30; total revenue potential for the extension is estimated at $337M, the extension would increase SDRL's average contract term to 3.8 years from 3.5, and raise its contracted backlog to $2.9B from $2.6B.