Looks like Seadrill will be paying about $20,000 per day, each, to bareboat charter the 3 non-owned jack-ups, which are part of the 5 jack-up Qatar contract. 3 newbuild Friede & Goldman JU2000E vessels coming from Chinese shipyard ZPMC (Zhenhua Heavy Industries); named the Lovanda, Lovasing and KS Java Star 3.
The Seadrill owned rigs West Telesto (2013-premium) and West Castor (2013-premium) should be the first two jackups to work their portion (6+6 in aggregate) of this multi-year term contract, starting 1Q20. Additionally, I expect the 3 bareboat jackups to be delivered from China to Qatar's Middle East waters in 1Q20 by a heavy lift vessel owned by Dockwise, and start their portion (8+8 in aggregate) of the multi-year contracts in 2Q and 3Q20. Dayrates for the drilling rigs with crew $128k/d per jackup during the firm periods, and $140k/d for the option years. The total value of the contract which has already been disclosed ($656 million firm + $700 million option), as had the number of term years (14 yrs firm +13.7 yrs option, in aggregate).
Seadrill has landed this, the longest and highest jack-up day-rate term contract since the downturn, at dayrates well above spot rates for premium jackups that were running in the $70-75k/d range earlier this year.
New contracts are extremely cash flow and P&L positive. These $128/140k day-rates are in-line with 2013/2014 premium jackup rates, the year just before the offshore drilling market started to crash. T.D.