Seadrill Limited (NYSE: SDRL) announced that its ultra-deepwater drillship West Polaris received a 1,095-day contract extension with Petrobras for the Búzios field in the Santos Basin offshore Brazil.

The extension adds approximately $480 million to the company's contract backlog and is scheduled to begin in January 2028, following the completion of the current drilling program, according to a company statement.

Seadrill also disclosed updated dayrates for the current contract period. From April 1, 2026 through March 31, 2027, the rate will be $409,200 per day. The rate increases to $454,700 per day from April 1, 2027 through January 15, 2028.

"This award enhances Seadrill's earnings visibility for a mature asset into the next decade," said Samir Ali, the company's president and chief executive officer. "It provides significant value to both Seadrill and Petrobras, while strengthening our relationship with a valued, long-term partner."

The Hamilton, Bermuda-based company operates a fleet of deepwater drilling rigs serving oil and gas companies globally. The West Polaris extension represents continued operations in Brazil's pre-salt oil fields, where Petrobras has been expanding production activities.