|16 August, 2019

Seadrill venture in $656mln Qatar rig contract

GulfDrill, a 50-50 joint venture between Seadrill and GDI, will initially operate five so-called jackup rigs on a $656 million contract with Qatar Petroleum

The SEADRILL 3, the first of four oil rigs that Keppel FELS is building for the same customer, is seen in Singapore in this April 21, 2006 file photo. Image used for illustrator purpose

The SEADRILL 3, the first of four oil rigs that Keppel FELS is building for the same customer, is seen in Singapore in this April 21, 2006 file photo. Image used for illustrator purpose

REUTERS/Luis Enrique Ascui/Files

OSLO  - Seadrill and Gulf Drilling International (GDI) have formed a jointly owned rig firm to conduct exploration on behalf of Qatar Petroleum from 2020 to 2024, Seadrill said late on Thursday.

GulfDrill, a 50-50 joint venture between Seadrill and GDI, will initially operate five so-called jackup rigs on a $656 million contract with Qatar Petroleum. It did not say where the exploration would take place.

The state-owned energy firm also has the option to order further drilling with an additional contract value of up to $700 million.

The GulfDrill venture will charter two of its rigs from Oslo- and New York-listed Seadrill and three more from an unnamed shipyard.

"We are excited to establish a significant presence in an important jackup market and to partner with GDI," Seadrill Chief Executive Anton Dibowitz said in a statement.

"GulfDrill will give us the opportunity to improve our access to a market that is expected to show significant growth over the next years and strengthen our relationship with Qatar Petroleum," Dibowitz added.

(Reporting by Terje Solsvik Editing by David Holmes) ((terje.solsvik@thomsonreuters.com; +47 918 666 70))

More From Energy