Seadrill has completed the final agreement with Pemex Exploracion y Produccion (Pemex) for the provision of the ultra-deepwater, semi-submersible drilling rig West Pegasus for a five-year assignment in Mexico.

Under the terms of the $850m contract, the rig has a fixed operating day rate for the first two years, which will be adjusted annually thereafter based on market conditions.

The rig was built at the Jurong Shipyard in Singapore and proceeded for mobilisation in Mexico on 1 April 2011.

The rig will begin operations by the third quarter of 2011.