Seadrill's cost-reduction effort comes amid falling oil prices which have put heavy pressure on the industry.

Seadrill delays newbuild deliveries

LONDON, August 27, 2015 – Offshore drilling contractor Seadrill has had to delay delivery of 10 newbuilds, owing to a contract drought resulting from a depressed global drilling market.

Pressure on dayrates amid low oil prices, has forced Seadrill to postpone the delivery of ultra-deepwater drillships West Dorado and West Draco – which are being constructed at South Korea’s Samsung Heavy Industries – until the end of the first quarter of 2017, as reported in the company’s quarterly earnings.

Furthermore, the delivery of eight Seadrill jack-up rigs from the Dalian yard in China has been postponed. One of the platforms is now due for release at the end of December 2015, with five units pushed back for 2016 and two for 2017. All eight were to be delivered this year.

The units are part of a newbuild programme for 15 rigs, initiated prior to the collapse in oil prices and the resulting depression of the international drilling market.

Seadrill said total remaining yard payments for the programme, spanning four drillships, three semi-submersibles and the eight jack-upsin its entirety, are worth around $4.3 billion, with $1.1 billion paid to yards in pre-delivery instalments.

“Discussions with shipyards are ongoing in regards to the delivery dates for the remaining units,” the company has said.