SDLP - Seadrill Partners LLC receives notice of termination for the West Sirius contract and extends the West Capricorn contr...
March 30 2015 - 6:48AM
London, United Kingdom, March 30,
2015 - Seadrill Partners LLC (NYSE: SDLP) ("Seadrill
Partners") has received a notice of termination from BP Exploration
& Production Inc. ("BP") for the contract for the West Sirius
which will be effective after having completed the current well and
demobilization, which Seadrill Partners estimates to be by early
May 2015.
Prior to the cancellation notice, the dayrate and
term for the West Sirius and West Capricorn contracts were swapped.
The West Sirius dayrate was decreased by $40,000 per day and the
term was decreased by two years to expire in July 2017 while the
dayrate for the West Capricorn was increased by $40,000 per day and
the term was extended by two years to expire in July 2019.
Amortized payments for the West Capricorn such as mobilization and
upgrades will continue on the original schedule ending in July
2017. In accordance with the cancellation provisions in the
West Sirius contract, Seadrill Partners will receive payments over
the remaining contract term, now expiring in July 2017.
As a result of the termination, Seadrill Partners'
backlog will decrease by approximately $160 million. After
taking into consideration the expected decrease in operational
expense while the unit is cold stacked, and the fact that
termination fee payments will not be impacted by downtime, Seadrill
Partners does not expect a material impact on its cash flow
position over the contract period through July 2017.
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 units in the Company'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 offshore drilling market conditions
including supply and demand, dayrates, customer drilling programs
and effects of new rigs on the market, contract awards and rig
mobilizations, contract backlog, the performance of the drilling
units in the Company's fleet, delay in payment or disputes with
customers, our ability to successfully employ our drilling units,
procure or have access to financing, ability to comply with loan
covenants, liquidity and adequacy of cash flow from operations,
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 NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Seadrill Partners LLC via Globenewswire
HUG#1907430
Seadrill Partners (NYSE:SDLP)
Historical Stock Chart
From May 2024 to Jun 2024
Seadrill Partners (NYSE:SDLP)
Historical Stock Chart
From Jun 2023 to Jun 2024