Seadrill Limited announced Thursday that its subsidiary, Seadrill Partners, as part of a settlement agreement has agreed to non-payment for 37 days during the recent mobilization period as a result of the time required for the ultra-deepwater harsh environment West Aquarius (UDW semisub) to complete modifications and repairs in order to meet the regulatory requirements for operations in Canadian waters and for the operator to receive authorization from the Canadian authorities to commence operation. This loss will negatively impact third quarter results.
In conjunction, it is negotiating an 18 month contract extension thereby extending the operations for the rig off the east coast of Canada until April 2017. The new contract, which will be subject to required approvals by the joint interest owners, is expected to be executed by Nov. 30.
The total revenue potential for the extension is estimated to be approximately $337 million.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.