Seadrill Limited’s 50:50 joint venture, Sonadrill Holding Ltd., has secured a seven‑well priced option for the ultra‑deepwater drillship Sonangol Quenguela, extending the rig’s operations in Angola by roughly 480 days and committing it through June 2028.
The extension is part of Sonadrill’s broader portfolio, which now includes three drillships: the Seadrill‑owned West Gemini (sixth‑generation), and the Sonangol‑owned Sonangol Libongos and Sonangol Quenguela (both seventh‑generation). The new contract keeps Quenguela in service and adds a long‑term revenue stream for the joint venture.
The 480‑day extension provides Seadrill with a stable earnings window that aligns with its strategy to focus on high‑spec, high‑margin projects. By locking in operations through mid‑2028, the company strengthens its presence in the high‑value Angola market and adds to a backlog that stood at approximately $2.5 billion as of the end of Q4 2025.
Seadrill’s Q4 2025 results showed revenue of $362 million, up 25% from $289 million a year earlier, but the company posted a net loss of $10 million versus a $101 million profit in the same quarter last year. Management highlighted the backlog growth and earnings visibility in its February 25 earnings call, noting that “90 % of the midpoint of our 2026 revenue range is covered by firm backlog.” The company also emphasized its safety record, with CEO Simon Johnson stating, “We achieved the best safety performance in our history as measured by total recordable incident rate, delivering 50% better than the IADC offshore industry benchmark.”
While the extension does not disclose financial terms, it signals Seadrill’s continued ability to secure long‑term contracts for its modern fleet, reinforcing its competitive position in the ultra‑deepwater market and supporting the company’s outlook for margin expansion and stronger cash generation starting in mid‑2026.
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