SDLP - Seadrill Partners LLC announces settlement agreement and 18 month extension for semi-submersible West Aquarius
October 10 2013 - 3:39PM
London,
United Kingdom, October 10, 2013 - Seadrill Partners
LLC announces today that as part of a settlement agreement it has
agreed to non-payment for 37 days during the recent mobilization
period as a result of the time required for the ultra-deepwater
harsh environment semi-submersible West Aquarius to complete
modifications and repairs in order to meet the regulatory
requirements for operations in Canadian waters and for the operator
to receive authorization from the Canadian authorities to commence
operation. This loss will negatively impact third quarter
results.
In conjunction, it is negotiating
an 18 month contract extension thereby extending the operations for
the rig off the east coast of Canada until April 2017. The
new contract, which will be subject to required approvals by the
joint interest owners, is expected to be executed by November 30,
2013.
The total revenue potential for
the extension is estimated to be approximately US$337 million.
This extension will increase Seadrill Partners average contract
term, as at September 30, 2013, from 3.5 years to 3.8 years and
increases contracted backlog from US$2.6 billion to US$2.9 billion.
It will also increase potential future distribution capacity as a
function of an increased day rate.
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. In particular, statements regarding the
Company's ability to make cash distributions, the expected
performance of the drilling rigs in OPCO's fleet, estimated
duration of customer contracts, contract dayrate amounts and the
Company's ability to purchase drilling rigs from Seadrill Limited
in the future are considered forward-looking statements. 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 of 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 the performance of the drilling
rigs in the Company's fleet, delay in payment or disputes with
customers, fluctuations in the international price of oil, 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. 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. 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
factor 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
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Seadrill Partners LLC via Thomson Reuters ONE
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