SDRL has secured a four-year contract from Statoil for its ultra-deepwater rig West Hercules for operations in harsh environments.

The potential revenue from the contract is estimated at $787m, including $50m in mobilisation fees.

The contract also gives Statoil an option to extend the contract for one year.

The West Hercules rig will be operated by North Atlantic Drilling, an SDRL subsidiary.

Work under the contract is expected to begin in the third quarter 2012, following completion of SDRL’s contract in the South China Sea.