Seadrill's Drillships Win Key Contracts: Implications for Gulf Energy Sector

Seadrill Scores Major Contracts in Gulf of America

Seadrill Limited (SDRL), a leading offshore drilling contractor, has made waves in the Gulf of America with the recent securing of significant contracts for two of its drillships: West Vela and Sevan Louisiana. This move not only enhances the company’s operational portfolio but also underscores the ongoing activity within the offshore drilling sector amid fluctuating oil prices.

Contract Highlights: Working with Major Players

The West Vela drillship has been awarded a two-well contract with Talos Energy (TALO), an oil and gas operator known for its innovative approaches to energy production. This contract is set to commence in November 2025 and is estimated to last 90 days. Meanwhile, the Sevan Louisiana drillship has secured a contract to drill three wells for Murphy Oil (MUR), starting in August 2025 and continuing until November 2025.

Both contracts illustrate a strategic positioning for Seadrill as it aligns itself with reputable industry players and strengthens its footprint in the Gulf region.

Technical Specifications of the Drillships

Both drillships are noteworthy for their advanced designs and operational capabilities. The West Vela, built in 2013, features a Samsung 12,000 design, capable of drilling to depths up to 37,500 feet and accommodating up to 200 personnel. Its extensive operational depth allows it to access resources that are less accessible, highlighting its importance in exploration efforts.

On the other hand, the Sevan Louisiana drillship offers a Sevan 650 design, with a maximum drilling capability of 35,000 feet and the ability to function in water depths of 10,000 feet, catering to a workforce of 150. Such specifications position these vessels as vital tools in the ongoing search for oil and gas reserves.

Backlog Growth and Industry Impact

Alongside announcing these contracts, Seadrill highlighted a robust order backlog of approximately $2.5 billion as of August 2025. This backlog not only signals confidence in the company's projects but also reflects an optimistic outlook for the offshore drilling industry as a whole. Such financial stability is essential for Seadrill as it navigates the challenges faced by the energy sector.

Insight into Industry Performance: Talos and Murphy

In light of Seadrill’s new contracts, it’s important to consider the financial performance of its partners, Talos Energy and Murphy Oil. Talos reported total revenues of $424 million in its second-quarter earnings, albeit with an adjusted loss per share of 27 cents. Despite challenges, the company celebrates first production from recent wells, positively impacting its growth trajectory.

Murphy Oil, conversely, posted adjusted net earnings of 27 cents per share with total revenues reaching $696 million. With a total production of 190 thousand barrels of oil equivalent per day (Mboe/d), Murphy demonstrates a solid production capability, making it a significant player in the drilling industry.

The Bigger Picture: Future Predictions

Looking ahead, the new contracts for Seadrill may position the company to capitalize on a recovering market as demand for oil and gas continues to rise. The increasing need for domestic energy sources could foster growth in offshore drilling activities, promoting both job creation and energy independence within the United States.

The Gulf of America remains a key region for oil discovery and extraction, and as companies invest in advanced drilling technologies and capabilities, we may see more contracts emerge, pushing the industry towards a competitive rebound.