Vela

[escveritas]

Australia-based BHP has booked Aquadrill's Vela drillship for a drilling operation in the U.S. Gulf of Mexico.

The rig, managed by Seadrill, is currently in the Gulf of Mexico, on a contract with Equinor until May. After the expiration of the contract, the management of the rig will be taken over by Diamond Offshore.

Diamond Offshore also manages Aquadrill's (ex-Seadrill Partners') Auriga drillship and Capricorn semi-submersible drilling rig.

The contract with BHP, which recently agreed to merge its petroleum business with Woodside, for the 2013-built Vela drillship is expected to start in September 2022 and last until December 2022, at an undisclosed day rate.

The Vela, previously far known as the West Vela, is a sixth-generation drillship with operational history in the U.S Gulf of Mexico. It was built by Samsung Heavy Industries in South Korea.

[escveritas]

A Diamond-managed rig has been extended by its current client for work in the U.S. Gulf of Mexico for an additional one-year term in direct continuation of the rig’s current term. The contract value for this extension is approximately $150 million.

[escveritas]

Diamond Offshore also announced it has entered into a contract with BOE Exploration & Production LLC for the Diamond-managed drillship Vela for work in the U.S. Gulf of Mexico. The Vela was awarded a contract with a minimum duration of 225 days for a total value of approximately $88 million. The contract also includes options for up to an additional five to seven wells. Work under the new contract is expected to commence in the first quarter of 2023.

[escveritas]

Aquadrill Announces Charter Hire Agreement for the Vela

London, United Kingdom, December 15, 2022 - Aquadrill LLC ("Aquadrill” or the “Company") has extended a charter hire agreement with a subsidiary of Diamond Offshore Drilling, Inc. (the “Manager”) to provide the Company’s Vela rig, an MPD outfitted 7th generation drillship, for operations in the US Gulf of Mexico for a 150 day drilling contract with a total expected contract value of approximately $60 million.

The terms of the charter hire agreement are consistent with the current management services agreements in place between the Company and the Manager. Further, the resulting financial benefits for the Company are as if the Company had entered into the drilling contract directly.

Concurrent with extending the charter hire for this new work scope, an agreement to suspend the underlying drilling contract related to the charter hire for the rig running from January to August 2023 has been entered into. This contract will be suspended after the first well and the new 150 day work scope will commence in direct continuation. The rig is expected to return to the initial underlying drilling contract in August 2023 and continue with the remaining firm work plus options if exercised.