Sonangol extends contract for Libongos drillship for 12 wells

Seadrill announced a new extension has been secured by Sonadrill Holding, Seadrill’s 50:50 joint venture with an affiliate of Sonangol. Sonadrill has secured a 12-well extension in Angola for the Libongos drillship at $402,500/day.

Total contract value for the firm portion of the contract is approximately $327 million, inclusive of additional services. Commencement is expected in Q4 2022, with a firm term of approximately 25 months, in direct continuation to the existing contract.

There are currently three drillships bareboat chartered into Sonadrill: a Seadrill-owned unit, the West Gemini, and two Sonangol-owned units, the Quenguela and Libongos. Seadrill manages and operates the units on behalf of Sonadrill.

“Sonadrill remains strategically important for the development of the Angolan oil and gas sector,” said Seadrill CEO Simon Johnson. “Sonadrill is the No. 1 rig operator in Angola, and this new contract will generate significant free cash flow for the joint venture, which will ultimately flow to Seadrill and Sonangol as shareholders.”