Sonadrill Bagged Contract Extension for 12 Oil Wells in Angola

As per the contract, the Lobingos rig will be leveraged to drill 12 more wells at a rate of $402,500 per day.

SEATTLE (Oil Monster): Sonadrill announced that it has bagged $327 million extension contract for a 12-well extension in Angola for Lobingos-one of its drillships in the country. It must be noted that Sonadrill is a joint venture between Angolan state-owned Sonangol and Bermuda-based drilling solutions provider Seadrill.

As per the contract, the Lobingos rig will be leveraged to drill 12 more wells at a rate of $402,500 per day. The drilling activity will be carried out over a period of 25 months beginning Q4 this year. The contract value is inclusive of additional services. The current contract for Lobingos rig is at a dayrate of $228,800 and is scheduled to come to a close in November 2022.

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The award of the contract is part of Angola’s efforts to expand exploration activities at its oil and gas sector. It must be noted that the rig was primarily used by Italian oil major Eni, which was successful in making a key oil discovery in the country’s deepwaters.

Commenting on the development, Simon Johnson, CEO, Seadrill noted that the company is committed to the development of the Angolan oil and gas sector. The new contract is expected to generate significant free cash flow for the joint venture, which in turn will benefit Seadrill and Sonangol shareholders, Johnson added.