Seadrill signs $1.1B rig deal with Total


Seadrill (SDRL) signs a five-year, $1.1B contract with Total (TOT) for work offshore Nigeria for SDRL's newly built ultra-deepwater West Jupiter drillship.

The West Jupiter is one of eight 6th generation drillships currently under construction for SDRL and is expected to be delivered from the Samsung Heavy Industries shipyard in South Korea this August.

The deal is worth ~$600K/day, including mobilization, according to Reuters calculations.

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Comments (32)
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    Oh, look at the dayrates falling all the way up. How weird.
    2 Jun 2014, 07:55 AM Reply Like
  • rvshaw
    , contributor
    Comments (117) | Send Message
     
    $600K/day? But according to all the well-thought analysts, dayrates were falling.
    2 Jun 2014, 07:57 AM Reply Like
  • ttrombold
    , contributor
    Comments (12) | Send Message
     
    Cramer will probably show how bad this contract will be for SDRL
    2 Jun 2014, 08:07 AM Reply Like
  • OREGON DON
    , contributor
    Comments (9) | Send Message
     
    I am a contrarian, when Cramer says buy, I sell, when he says sell, I buy
    2 Jun 2014, 08:53 AM Reply Like
  • OREGON DON
    , contributor
    Comments (9) | Send Message
     
    I am a contrarian, when Cramer says buy, I sell, when he says sell I buy
    2 Jun 2014, 08:53 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3427) | Send Message
     
    Brand new rigs get big dollars. Long (ESV)
    2 Jun 2014, 08:09 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (1396) | Send Message
     
    Hopefully PI reads this so he can stop filling up all of the comment sections within the Seadrill articles.
    2 Jun 2014, 08:10 AM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    I wouldn't count on it. He will drill deep into the financials that none of the rest of us actually understand in order to demonstrate how bad this deal is for the company, for shareholders, for Mom and Apple pie. It's merely neutral for baseball.
    2 Jun 2014, 08:46 AM Reply Like
  • Chris Lau
    , contributor
    Comments (4241) | Send Message
     
    Issue another sell call, stat (again, that's code for 'buy')
    2 Jun 2014, 08:17 AM Reply Like
  • blairwitt
    , contributor
    Comments (3) | Send Message
     
    The shorts are relentless on negative information on SDRL, even Kramer thinks they have lost their way. I have been a buyer over the last two years and have some nice gains and some very substantial dividends for a retired investor.
    2 Jun 2014, 08:43 AM Reply Like
  • eapss
    , contributor
    Comments (56) | Send Message
     
    Nothing succeeds like success .
    2 Jun 2014, 08:52 AM Reply Like
  • Rock Bottom
    , contributor
    Comments (12) | Send Message
     
    But what about the other 7 new builds that don't have contracts yet? Sorry, just trying to talk down the price so I can buy more.
    2 Jun 2014, 09:51 AM Reply Like
  • Energysystems
    , contributor
    Comments (2127) | Send Message
     
    imo, with the Pemex and Rosneft deals, those large deals should spur the Oil Majors into locking up contracts for the new builds. Will it happen? We'll have to wait and see.
    2 Jun 2014, 11:12 AM Reply Like
  • divdood
    , contributor
    Comments (25) | Send Message
     
    Does any SDRL competitor have a $1.1B contract on a "state-of-the-art" drillrig extending out 5 years!? Talk about future cash flow.
    2 Jun 2014, 10:48 AM Reply Like
  • Dealerdeb1
    , contributor
    Comments (1580) | Send Message
     
    I bought it but I watch my stocks every day so if it starts to tank I'll bail. simple collect the 10% alonmg the way? who's stupid here?
    2 Jun 2014, 10:49 AM Reply Like
  • mac1943
    , contributor
    Comments (143) | Send Message
     
    But that's less than three month's revenue. Unless SDRL gets another contract the backlog will keep dropping. The sky is falling. I can hear it now !
    2 Jun 2014, 11:55 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
     
    Where is P I to tell us how bad this is?
    2 Jun 2014, 03:20 PM Reply Like
  • rvshaw
    , contributor
    Comments (117) | Send Message
     
    Liking the SDRL action today. Thought it might go higher though. But still smiling.
    2 Jun 2014, 03:43 PM Reply Like
  • skipmac
    , contributor
    Comments (55) | Send Message
     
    Better add another 100K to that 600K amount for security. Nigeria is not the place to do business with the Taliban and al Qaeda hanging around the edge.
    2 Jun 2014, 05:54 PM Reply Like
  • phenix
    , contributor
    Comments (447) | Send Message
     
    Are you kidding? Nigeria is one of the world's top oil producers with most of the major oil companies already heavily invested there.....
    3 Jun 2014, 02:20 AM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    They are offshore drillers :) is quite far to swim to their destination
    3 Jun 2014, 02:20 AM Reply Like
  • Energysystems
    , contributor
    Comments (2127) | Send Message
     
    hahaha hey now, mapodga...lets not do any racist swimming jokes!
    3 Jun 2014, 11:30 AM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    It wasn't meant in any racist way.

     

    But you know if you are 20 miles offshore then you are not very much influenced by potential inland security troubles.

     

    They are isolated, so they are quite safe.
    3 Jun 2014, 06:15 PM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (589) | Send Message
     
    Dont be so sure look at the Somali Pirates taking on Cargo ships using small open boats with out board motors
    4 Jun 2014, 08:11 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
     
    A couple of skilled shots with a good scope would and could easily negate any threats, but when has anyone heard of an oil jack being attacked? zero.
    4 Jun 2014, 10:00 AM Reply Like
  • mts
    , contributor
    Comments (162) | Send Message
     
    Rigs themselves are rare but support vessels happen regularly. Here's an attempt on an oil rig http://fxn.ws/1iV4SgJ
    4 Jun 2014, 10:06 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
     
    You know I may be in for a bit of luck? Seems some Prince from Nigeria wants to hand me some big inheritance.
    :)
    4 Jun 2014, 06:23 PM Reply Like
  • Dealerdeb1
    , contributor
    Comments (1580) | Send Message
     
    There is a way different mindset with rig workers. THEY would NOT hesitate to kill a few Pirates and the Pirates know it. Merchant Marine and Cruise ships are easier targets.
    5 Jun 2014, 07:37 PM Reply Like
  • rocket1963
    , contributor
    Comments (98) | Send Message
     
    SDRL forever, ok ten more years, then selling , then retiring
    2 Jun 2014, 06:47 PM Reply Like
  • user 18159032
    , contributor
    Comments (2058) | Send Message
     
    You folks need to give Prudent a break. Here is what we know about our friendly neighborhood jester, he always calls the market exactly right and exactly on time.
    He has also told us over and over again that he is not short on SDRL. We know all this because he told us so. Also he is, according to him, totally truthful, not honest mind you but in the strictest sense truthful. This means that notwithstanding his negativity is actually long on SDRL or at least a hold. He would just rather be long at $19 PS. So would I, but that is the stuff dreams are made of.
    3 Jun 2014, 10:19 AM Reply Like
  • JP117
    , contributor
    Comment (1) | Send Message
     
    I wonder if this 600k includes a gross up for witholding tax. If yes probably around 10-15%. Which means the day rate is actually 540-550k per day.
    3 Jun 2014, 11:44 PM Reply Like
  • Crudely_Midstream
    , contributor
    Comments (132) | Send Message
     
    Withholding tax is paid on dividends, not sales. And Bermuda's is 0%.
    4 Jun 2014, 03:02 PM Reply Like
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