Actionable news
0
All posts from Actionable news
Actionable news in SDLP: SEADRILL PARTNERS LLC,

Seadrill Partners - The Semi-Submersible West Capricorn Placed On Extended Standby By BP

SDLP plans to cut 112 offshore oil rig jobs due to BP Exploration & Production Inc. extending its standby period services for the West Capricorn.

The job cuts will begin on May 1 and are expected to be complete by May 13. The standby rate is not known.

This is not a particularly good news even if the company gets compensated by BP.

Seadrill Partners, LLC (NYSE:SDLP)

Seadrill Partners is a limited liability company. The company was formed primarily to own, operate and acquire offshore drilling units from Seadrill Ltd. (NYSE:SDRL).

The company's subsidiaries, including Seadrill Operating LP, Seadrill Capricorn Holdings LLC and Seadrill Partners Operating LLC, own 100% interest in the drilling units.

Seadrill Ltd. owns 42,819,100 total common (26,275,750 shares) and subordinated shares (16,543,350 shares) of SDLP, or 46.6% (Minority holder).

This article updates my preceding article on SDLP on February 29, 2016, regarding the Q415 results and fleet status.

April 18, 2016, Seadrill Americas Inc., the Houston-based arm of London-based Seadrill Management Ltd., said it plans to cut 112 offshore oil rig jobs.

The jobs are supporting the operation of the West Capricorn Rig in the Gulf of Mexico. The cuts are due to BP Exploration & Production Inc. extending its standby period services for the rig.

"The extended standby of this major contract with a principal client is sudden, unexpected and outside of Seadrill's control," the company said in a letter to the Texas Workforce Commission.

The job cuts will begin on May 1 and are expected to be complete by May 13. All affected employees have been notified, and they do not have bumping rights, meaning workers with more seniority cannot take the jobs of those with less seniority.

Many shareholders are now of course wondering what means an "extended standby" for the West Capricorn.

Let's go back in time for an instant.

On March 30, 2015...


More