- The jack-ups AOD I and AOD II received three year contract extensions from Saudi Aramco expiring in June 2019 and July 2019, respectively. The extensions are in direct continuation of the current contracts and have added approximately $225 million in contract backlog.
- The West Castor secured a new one-year contract with ENI in Mexico commencing in December 2016, resulting in a $40 million increase in backlog which includes the provision of onshore logistics services.
- The West Vigilant secured a 3 month contract under the existing agreement with Repsol in Malaysia commencing in August, resulting in a $10 million increase in backlog.
- The jack-up AOD III received an 83 day contract extension from Saudi Aramco expiring in December 2016, resulting in a $9 million increase in contract backlog.
- The West Ariel was moved to non-operating flotel mode and the dayrate was reduced to $120,000 per day from July 2016 through the remainder of its contract term, ending in February 2018, resulting in a $20 million reduction in backlog.
- The West Freedom backlog was reduced by $16 million resulting from a discounted rate in 2016 related to non-operating flotel period. The West Freedom also received an extension to June 30, 2017, which is included in the backlog reduction, Cardon IV expect to recommence operations at a rate of $225,000 per day in early 2017.
- The West Pegasus received a notice of termination from Pemex for the drilling contract effective August 16, 2016 resulting in a potential backlog reduction of $266 million. Seadrill has disputed the grounds for termination and is reviewing its legal options.
- The West Epsilon received notice of cancellation from Statoil effective mid-October 2016. The unit was previously contracted until the end of December 2016. In accordance with contractual terms, a lump sum payment of approximately $11 million is payable by Statoil.
Additionally, during the fourth quarter to date we have concluded the following commercial agreements:
- The West Phoenix was awarded a 90 day contract with Total in the UK, West of Shetland. The backlog for the contract is estimated at $17 million.
- The West Saturn was awarded a one well contract at $225,000 per day with ExxonMobil in Liberia. This is in direct continuation of its current contract with ExxonMobil in Nigeria, which was due to end on December 8, 2016. This results in an estimated total contract backlog increase of $9 million.
- Cardon IV exercised their option on the West Freedom to extend the non-operating flotel period by three months to March 31, 2017. Operations will recommence on April 1, 2017, and will extend to September 30, 2017, at a rate of $225,000 per day.
- We have agreed to reduce the total remaining contract value on the West Jupiter by $144 million. The duration of the contract remains unchanged. As part of the agreement, the contract has been amended such that the compensation due in the event Total elected to terminate for convenience would ensure that the Company's backlog remained materially intact. The West Jupiter is currently contracted with Total in Nigeria until December 2019.
Financial performance summary: 3Q16 underlying
* Underlying is defined as reported results, adjusted for non-recurring items and disposals