Seadrill (NYSE:SDRL) has significantly strengthened its long-term revenue outlook, announcing a 1,095-day contract extension with Petrobras for the ultra-deepwater drillship West Polaris in the prolific Búzios field.
The three-year extension adds approximately $480 million in contract backlog, ensuring the vessel remains active in Brazil’s Santos Basin through the early 2030s.
The new term is scheduled to begin in January 2028, immediately following the completion of the ship's current firm program.
In a notable move reflecting the tightening global supply of high-specification floaters, the agreement also includes an upward adjustment to the West Polaris’s existing dayrates over the next two years.
The escalated pricing underscores the robust demand for seventh-generation drillships capable of operating in the challenging pre-salt layers of the Brazilian offshore sector.
By securing these rates now, Seadrill is insulating itself against potential market volatility while locking in high-margin work for one of its core assets.
The Búzios field, where the West Polaris is stationed, is one of the world's largest deepwater oil discoveries and a cornerstone of Petrobras’s aggressive production growth strategy.
For Seadrill, the extension represents a major win in a region that has become the epicenter of the offshore drilling recovery.