Seadrill Limited (NYSE: SDRL) announced that its joint venture Sonadrill Holding has received a contract extension for drilling operations in Angola.

The extension involves a seven-well priced option for the ultra-deepwater drillship Sonangol Quenguela, which will extend operations by approximately 480 days and commit the rig through June 2028.

Sonadrill operates as a 50:50 joint venture between Seadrill and an affiliate of Sonangol E.P. Seadrill receives a management fee for providing management, operational and technical support to the joint venture.

The contract extension represents continued drilling activity in Angola's offshore oil and gas sector, with the drillship remaining committed to operations for nearly four additional years.