Seadrill-Sapura JV wins $2.7 billion Petrobras contract

JUNE 28, 2013 — Seadrill Limited  and Malaysia's SapuraKencana Petroleum Berhad today announced that their jointly owned entity, Sapura Navegação Marítima S.A., Brazil has been awarded a contract from Petrobras to charter and operate three pipe laying support vessels.

The contract is for a period of eight years with an extension option for an additional eight years and is expected to commence by the second quarter of 2016. Total revenue potential for the contract is expected to be $2.7 billion.

Seadrill says the three vessels will be constructed in Holland with IHC Caland and will have the same specifications as SNM's existing orders with the shipyard.

Total newbuild cost will be approximately $800 million.

John Fredriksen, Chairman of Seadrill Limited says, "Seadrill, along with SapuraKencana, continues to support the strategic investment in SNM. The additional vessels bring the total PLSV fleet in the region to six units and builds capacity in order to insure that Petrobras has best in class support for their operations. This long term agreement demonstrates SNM's strong relationship with Petrobras and their industry leading operational performance."