NADL - Announces long-term contract awards for the West Elara and the West Linus with ConocoPhillips
(Thomson Reuters ONE) -
Hamilton, Bermuda, April 11, 2017 - North Atlantic Drilling Ltd ("North
Atlantic" or "the Company") has secured 10-year contract awards for the jack-ups
West Elara and West Linus with ConocoPhillips Skandinavia AS ("ConocoPhillips")
for work in the Greater Ekofisk Area. The total additional backlog for the new
contract awards is estimated at $1.4 billion excluding performance bonuses.
As part of the agreement, the Company has agreed to a dayrate adjustment on the
existing West Linus contract effective from April 2017, resulting in a $58
million reduction in current backlog.
The new West Elara contract which is expected to commence in October 2017
includes a period of fixed dayrates until March 2020 and contributes
approximately $160 million of contract backlog. A market indexed rate is
applicable thereafter until October 2027 which the Company believes will
contribute an estimated $530 million of contract backlog.
The contract on West Linus has been extended from May 2019 until the end of
2028 at a market indexed dayrate, which the Company believes will contribute an
estimated $706 million of contract backlog.
The backlog estimate indicated for the market indexed rate period for each rig
is based on the third party dayrate assumptions presented in the Seadrill
Limited release dated January 31, 2017 and includes an agreed percentage
discount. The estimates are subject to changes based on market conditions.
The awards are subject to ConocoPhillips receiving partner approvals for the
contracts.
FORWARD LOOKING STATEMENTS
This news release includes forward-looking statements. Such statements are
generally not historical in nature, and specifically include statements about
the Company's plans, strategies, business prospects, changes and trends in its
business and the markets in which it operates. These statements are made based
upon management's current plans, expectations, assumptions and beliefs
concerning future events impacting the Company and therefore involve a number of
risks, uncertainties and assumptions that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements,
which speak only as at the date of this news release. Important factors that
could cause actual results to differ materially from those in the forward-
looking statements include, but are not limited to offshore drilling market
conditions including supply and demand, day rates, customer drilling programs
and effects of new rigs on the market, contract awards and rig mobilizations,
contract backlog, dry-docking and other costs of maintenance of the drilling
rigs in the Company's fleet, the cost and timing of shipyard and other capital
projects, the performance of the drilling rigs in the Company's fleet, delay in
payment or disputes with customers, our ability to successfully employ our
drilling units, procure or have access to financing, ability to comply with loan
covenants, liquidity and adequacy of cash flow from operations, fluctuations in
the international price of oil, international financial market conditions
changes in governmental regulations that affect the Company or the operations of
the Company's fleet, increased competition in the offshore drilling industry,
and general economic, political and business conditions globally and our ability
to negotiate and complete a comprehensive restructuring, either on a consensual
basis or otherwise. Consequently, no forward-looking statement can be
guaranteed. When considering these forward-looking statements, you should keep
in mind the risks described from time to time in the Company's filings with the
SEC, including its Annual Report on Form 20-F. The Company undertakes no
obligation to update any forward-looking statements to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and it
is not possible for us to predict all of these factors. Further, the Company
cannot assess the impact of each such factors on its business or the extent to
which any factor, or combination of factors, may cause actual results to be
materially different from those contained in any forward-looking statement.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: North Atlantic Drilling Ltd. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 11.04.2017 - 07:40 Uhr
Sprache: Deutsch
News-ID 535583
Anzahl Zeichen: 5466
contact information:
Town:
Stavanger
Kategorie:
Business News
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"NADL - Announces long-term contract awards for the West Elara and the West Linus with ConocoPhillips"
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