Seadrill updates status of Petrobras contracts
At the time of its third quarter earnings release in November 2014, Seadrill Limited ("Seadrill") announced that it had received extensions for its ultra-deepwater semisubmersibles the West Taurus and West Eminence from Petrobras in Brazil. However, due to recent developments within Petrobras, Seadrill no longer believes the contracts will be concluded in the timeframe or on the previously approved commercial terms. Consequently, Seadrill will remove USD1.1bn from the backlog reported in its third quarter earnings release. Seadrill continues to work with Petrobras and its partners to find a mutually agreeable commercial solution. Also at the time of the third quarter earnings release Seadrill announced approval for contract awards on the Libra Field from Petrobras for the ultra-deepwater drillships the West Tellus and West Carina. The final contracts have been signed and commencement of operations is expected to begin in the second quarter of 2015.