Seadrill secured $260 million U.S. Gulf contracts for West Neptune and West Vela, strengthening backlog and future revenue.
Seadrill Limited has secured two significant offshore drilling contract awards in the U.S. Gulf from LLOG Exploration Company LLC, which operates as a subsidiary of Harbour Energy. These new agreements are expected to contribute nearly $260 million to Seadrill’s existing contract backlog, strengthening the company’s financial outlook and reinforcing its long-standing partnership with LLOG. The contracts involve two of Seadrill’s ultra-deepwater drillships, West Neptune and West Vela, both of which have consistently delivered strong operational performance in the region.
The first contract involves the ultra-deepwater drillship West Neptune, which has received a 365-day contract extension. This extension will allow the vessel to continue its offshore drilling operations for an additional year, with the new work scheduled to begin in September 2026. The award reflects LLOG’s continued confidence in the rig’s efficiency, reliability, and performance in handling complex deepwater drilling projects. West Neptune has played an important role in supporting offshore exploration and production activities in the U.S. Gulf, and this extension further strengthens its utilization and long-term value.
In addition to the West Neptune extension, Seadrill also announced that its ultra-deepwater drillship West Vela has been awarded a separate drilling program with a duration of 270 days. This contract is expected to begin in August 2026 and adds further momentum to Seadrill’s offshore operations in the region. The award demonstrates the trust placed by LLOG in Seadrill’s ability to execute drilling campaigns safely and efficiently. West Vela has established a strong performance record, and its continued deployment supports Seadrill’s strategy of maintaining high fleet utilization and operational excellence.
Commenting on the development, Seadrill President and Chief Executive Officer Samir Ali expressed satisfaction over the continued collaboration with LLOG. He highlighted that the relationship between the two companies has grown over more than ten years of successful partnership and shared achievements. According to him, the consistent operational success delivered by the teams managing both West Neptune and West Vela has been a major factor in securing these follow-on contracts. Their performance has helped build customer trust and created opportunities for future business growth.
Ali also noted that the additional backlog improves Seadrill’s revenue visibility, giving the company stronger financial stability during a period of near-term softness in the U.S. Gulf offshore market. The secured contracts are expected to support free cash flow generation, which is important for maintaining financial strength and operational flexibility. He further stated that both drillships are well-positioned for future opportunities in 2027, especially as global floater utilization is projected to improve with stronger demand in international offshore markets.
These contract awards represent not only a financial boost for Seadrill but also a strategic advantage as the company prepares for future market recovery. By securing long-term work for both West Neptune and West Vela, Seadrill continues to strengthen its presence in the U.S. Gulf while positioning itself for broader global growth in offshore drilling operations.
