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Engineering Firm Seadrill's Contract Backlog Grows to $3.1 Billion in Q1

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Oil industry engineering firm Seadrill (SDRL) has recently added $860 million to its contract pipeline with work secured in the U.S. Gulf, Brazil and Angola, taking the total to $3.1 billion, it said in an earnings update on Monday.

Contract revenues in the three months to March 31 were $277 million, up from $273 million in Q4, 2025.

CEO Samar Ali said that growing demand for deepwater rigs has been evidenced by contracts secured in multiple global regions at a time of heightened focus on energy security providing "tailwinds into 2027".

Though the quarter was loss-making for the company, with some outlays for capital additions and long-term maintenance, it managed to complete the West Jupiter and West Capella projects ahead of schedule and within budget.

The two rigs started operation during Q1 and will provide mobilization revenue to the company in Q2.

The company's work backlog was boosted by $480 million by a three-year extension to the contract on West Polaris with Brazilian state-run energy company Petrobras that starts in Jan. 2028.

The West Neptune and West Vela rigs in the US Gulf obtained contracts with LLOG, a subsidiary of Harbor Energy, which added $260 million to contract backlog in that region. West Neptune obtained a 365-day contract extension starting in Oct. 2026.

For West Vela, the program duration is 270 days commencing in September.

The contract for the Sonangol Quenguela rig with TotalEnergies has been extended for 480 days from July 2028 while the West Carina contract in Brazil was extended to June 2026, the company said.

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