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Seadrill finalises jack-up contracts with Pemex

19th February 2014

Seadrill Limited has concluded drilling contracts with with Pemex for jack-up units

Seadrill Limited concludes drilling contracts with with Pemex for jack-up units

Seadrill Limited, a Bermuda-based offshore deepwater drilling company, has concluded drilling contracts with with Pemex, Mexico's national oil company. The jack-up drilling units include in the agreements are West Oberon, West Intrepid, West Defender and West Courageous. 

Each contract is for a term of about 6 years and has a total revenue potential from the contracts that exceeds USD 1.8bn.

Per Wullf, Seadrill’s CEO said, "This opportunity to expand our relationship with Pemex was partly developed on the back of Seadrill's successful operations with our ultra-deepwater semi-submersible West Pegasus in Mexico.”  

In addition, Seadrill has established SeaMex Ltd., a 50/50 joint venture with an investment fund operated by Fintech Advisory Inc. 

Established in 1989, Fintech is a private investment manager with a strong investment record and operations in Latin American countries.   

SeaMex has been created for the purpose of running and managing the jack-up drilling units working for Pemex as well as developing and pursuing further opportunities in Mexico and other Latin American countries.  

Wulf added, “The long term nature of these contracts and the establishment of SeaMex, will create economies of scale in the region. Seadrill sees recent developments in Mexico such as new petroleum legislation, Pemex' expansion plans and recent large deepwater discoveries as supportive to the great opportunity to expand business within the country.” 

He concluded that “Over time, this will position Seadrill better than a centrally driven organization in what we see as a very attractive market. At the same time, a strong focus on localization benefits the Mexican labour market, the Mexican society, and our clients."

 

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