David Smith's questions to Seadrill Ltd (SDRL) leadership • Q3 2024
Question
David Smith inquired about the recontracting outlook for Seadrill's drillships in Brazil, specifically the Jupiter, Carina, and Tellus, and asked about the potential for upgrading 6th generation drillships to 7th generation capabilities.
Answer
President and CEO Simon Johnson described Brazil as the most important and resilient deepwater market, stating that while there was no specific news, the company is making 'meaningful positive progress' and is optimistic due to its incumbent advantage. EVP and CCO Samir Ali added that they remain confident in their ability to recontract the rigs. Regarding upgrades, Simon Johnson noted the 6th vs. 7th gen distinction is somewhat arbitrary, while Samir Ali emphasized that the company will not invest in upgrades without a clear, monetizable return on capital, and their current 6th-gen rigs are well-positioned in markets that do not require the extra capabilities.