SeaDrill Ltd. (SDRL), an offshore drilling contractor, announced that Petrobras approval had been received for the extensions of its ultra-deepwater semi-submersibles the West Taurus and West Eminence. Owing to recent developments within Petrobras, the firm no longer believes that the contracts would be concluded in the timeframe or on the previously approved commercial terms. As a result, Seadrill would remove $1.1 billion from the backlog reported in its third quarter earnings release. It continues to work with Petrobras and its partners to find a mutually agreeable commercial solution.
At the time of the third quarter earnings release, Seadrill also reported approval for contract awards on the Libra Field for the ultra-deepwater drillships the West Tellus and West Carina. The final contracts were signed and the commencement of operations is likely to begin in the second quarter of 2015.
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