Seadrill Pushes Back Drillship Delivery

Seadrill Limited has reached an agreement with DSME shipyard to defer the delivery of two ultra-deepwater drillships, the West Aquila and West Libra, until the second quarter of 2018 and first quarter of 2019 respectively.

Under the terms of the original construction contracts, the units were to be delivered by the end of the second quarter of 2016, and the total final yard installment for both units of over $800 million was due at that time.

The agreement announced today improves Seadrill’s near term liquidity position by deferring these capex commitments to 2018 and 2019, with no further payments to the yard until that time.