Seadrill Limited added $48 million to its order backlog after securing new drilling contracts in the U.S. Gulf of Mexico and Angola. The new agreements cover the West Neptune, Sevan Louisiana, and Sonangol Quenguela rigs and will begin immediately after the companies’ current contracts conclude.
The West Neptune rig will enter a four‑month program with LLOG Exploration that starts as soon as the rig’s existing engagement ends. The contract is designed to keep the rig in continuous operation, preventing idle days and preserving the company’s high utilization rate.
The Sevan Louisiana rig will take on a two‑month assignment with an undisclosed operator that follows the conclusion of its current deal with Walter Oil and Gas. The assignment also marks the first deployment of Seadrill’s Trendsetter well‑intervention system in the U.S. Gulf, expanding the rig’s technical capabilities.
In Angola, the Sonangol Quenguela rig will be extended for roughly ten months after the current contract expires in April 2026, locking the rig into service through February 2027. The extension follows a five‑well option exercise and further solidifies Seadrill’s partnership with Sonadrill, the joint venture that manages the rig.
These back‑to‑back contracts illustrate Seadrill’s strategy of securing preferential work that follows existing engagements, a tactic that keeps the fleet operating at near‑full capacity and reduces costly white‑space periods. The $48 million addition represents a 1.9% increase in a $2.5 billion backlog, providing the company with additional revenue visibility as it positions for the anticipated 2026‑2027 offshore cycle recovery.
Seadrill’s Q3 2025 results showed a net loss of $11 million and Adjusted EBITDA of $86 million, while the company posted a $101 million net income and $28 million Adjusted EBITDA in Q4 2024. The new contracts help offset the recent earnings volatility by extending the company’s operational pipeline into 2027 and reinforcing its long‑term customer relationships.
The company’s CEO, Simon Johnson, noted that the awards “reflect Seadrill’s ability to contract preferentially in direct continuation to current contracts and avoid costly white space in a challenging market phase.” The statement underscores the firm’s focus on maintaining high utilization amid a soft market, where day rates and competition are under pressure.
The deployment of the Trendsetter well‑intervention system on the Sevan Louisiana rig also signals Seadrill’s commitment to expanding its technical portfolio. The system’s first Gulf deployment is expected to enhance the rig’s operational flexibility and attract future work that requires advanced intervention capabilities.
Overall, the new contracts strengthen Seadrill’s backlog, sustain fleet utilization, and reinforce its long‑term partnership strategy, positioning the company to capitalize on the expected rebound in offshore drilling demand during the 2026‑2027 cycle.
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