Seadrill Limited (NYSE: SDRL) announced contract awards with LLOG Exploration Company LLC worth approximately $260 million for two ultra-deepwater drillships in the U.S. Gulf of Mexico.

The West Neptune received a 365-day contract extension scheduled to begin in September 2026. The West Vela was awarded a 270-day program expected to commence in August 2026. LLOG Exploration is a subsidiary of Harbour Energy.

The contracts add to Seadrill's backlog and extend the company's relationship with LLOG, which spans more than a decade. Both drillships will be positioned for availability in 2027.

"Securing this backlog enhances revenue visibility and supports free cash flow generation as we navigate near-term softness in the U.S. Gulf," said President and Chief Executive Officer Samir Ali in a statement.

The announcement comes as the offshore drilling industry faces market conditions in the Gulf of Mexico region. Seadrill operates a fleet of deepwater drilling units serving oil and gas companies.

The information was disclosed in a company press release issued from Hamilton, Bermuda.