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Seadrill defies oil prices and rises sharply following news of billion-dollar contracts in Brazil

The John Fredriksen-controlled rig company Seadrill has secured two contracts with the state-owned Brazilian oil company Petrobras, the company writes in a stock exchange release.

The contracts relate to the rigs West Carina and West Tellus, which will work on the Búzios field off the coast of Brazil. The contracts run over three years, and have a total value of 549 million dollars – almost five billion kroner.

On the Oslo Stock Exchange, Seadrill goes the opposite way of most other energy shares, which follow stock market declines and falling oil prices.

After just over 40 minutes of trading, the share had risen 14.8 percent.

– Increasingly important role

Seadrill has struggled in recent years, and has been under so-called bankruptcy protection until February. In September, the company received a rescue plan, and the “new” Seadrill will re-emerge early next year. The contracts in Brazil are expected to start in September.

Seadrill boss Stuart Jackson expressed enthusiasm for the contract in a statement Friday.

“Brazil is a strategically important market for the offshore sector, and I am pleased that Seadrill will play an increasingly important role in the years to come,” says Jackson.

New owners

The Norwegian financier John Fredriksen founded Seadrill in 2005, and built the company into a giant in the industry. The market gradually became challenging, and the company was in a similar restructuring and bankruptcy protection in 2017

Even before the pandemic hit last year, it became clear that Seadrill needed new debt relief.

The restructuring of the year ended with the creditors in the company agreeing to convert debt into shares with a loss of billions as a result. Thus, John Fredriksen stays with a fraction of the company, until he eventually buys up as he has signaled.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.

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