SEADRILL LTD, 6-K filed on 8/15/2023
Report of Foreign Issuer
v3.23.2
Cover
 6 Months Ended
Jun. 30, 2023
Cover [Abstract]  
Document Type 6-K
Entity Registrant Name SEADRILL LIMITED
Entity Central Index Key 0001737706
Document Fiscal Year Focus 2023
Document Fiscal Period Focus Q2
Current Fiscal Year End Date --12-31
Document Period End Date Jun. 30, 2023
Amendment Flag false
v3.23.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Operating revenues          
Contract revenues $ 124 $ 329 $ 182 $ 248 $ 515
Management contract revenues [1] 36 66 56 77 130
Total operating revenues 169 414 253 346 680
Operating expenses          
Depreciation and amortization (17) (37) (39) (52) (73)
Management contract expenses [1] (31) (47) (36) (49) (92)
Merger and integration related expenses 0 (16) 0 0 (19)
Selling, general and administrative expenses (6) (14) (16) (24) (28)
Total operating expenses (134) (308) (228) (321) (527)
Other operating items          
Gain on disposals 2 3 0 0 7
Total other operating items 2 3 0 0 7
Operating profit 37 109 25 25 160
Financial and other non-operating items          
Interest income 0 5 2 3 12
Interest expense (7) (13) (30) (40) (29)
Share in results from associated companies (net of tax) (2) 11 (8) (6) 14
Reorganization items 3,651 0 (5) (9) 0
Other financial items 30 (5) (12) 3 (6)
Total financial and other non-operating items, net 3,704 (2) (53) (49) (9)
Profit/(loss) before income taxes 3,741 107 (28) (24) 151
Income tax expense (2) (13) (8) (8) (14)
Profit/(loss) from continuing operations 3,739 94 (36) (32) 137
Loss after tax from discontinued operations (33) 0 0 0 0
Net profit/(loss) $ 3,706 $ 94 $ (36) $ (32) $ 137
Basic (loss)/earnings per share from continuing operations (in USD per share) $ 37.25 $ 1.18 $ (0.72) $ (0.64) $ 2.11
Diluted (loss)/earnings per share from continuing operations (in USD per share) 37.25 1.16 (0.72) (0.64) 2.07
Basic (loss)/earnings per share (in USD per share) 36.92 1.18 (0.72) (0.64) 2.11
Diluted (loss)/earnings per share (in USD per share) $ 36.92 $ 1.16 $ (0.72) $ (0.64) $ 2.07
Related party revenues $ 19 $ 72 $ 57 $ 74 $ 146
Total related party operating expenses (3) 0 0 0 0
Continuing operations          
Financial and other non-operating items          
Reorganization items 3,683 0 (5) (9) 0
Reimbursable revenues/ expenses          
Operating revenues          
Revenue 4 9 8 12 15
Operating expenses          
Vessel and rig operating expenses (4) (8) (7) (10) (14)
Other revenues          
Operating revenues          
Revenue [1] 5 10 7 9 20
Vessel and rig operating expenses          
Operating expenses          
Vessel and rig operating expenses [1] $ (76) $ (186) $ (130) $ (186) $ (301)
[1] Includes revenue received from related parties of $72 million, $146 million, $57 million, $74 million and $19 million for the three and six months ended June 30, 2023, the three months ended June 30, 2022, the period from February 23, 2022 through June 30, 2022 and period from January 1, 2022 through February 22, 2022 respectively, and costs paid to related parties of $3 million for the period from January 1, 2022 through February 22, 2022. Refer to Note 24 - Related party transactions for further details.
v3.23.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]          
Net profit $ 3,706 $ 94 $ (36) $ (32) $ 137
Other comprehensive gain, net of tax, relating to continuing operations:          
Actuarial gain relating to pension 1 0 3 3 0
Other comprehensive gain, net of tax, relating to discontinued operations:          
Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services 16 0 0 0 0
Change in fair value of debt component of Archer convertible bond (1) 0 0 0 0
Share in results from associated companies (2) 0 0 0 0
Other comprehensive income 14 0 3 3 0
Total comprehensive income for the period $ 3,720 $ 94 $ (33) $ (29) $ 137
v3.23.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 412,000 $ 480,000
Restricted cash 44,000 44,000
Accounts receivable, net 217,000 137,000
Amounts due from related parties, net 7,000 27,000
Assets held for sale -current 220,000 0
Other current assets 201,000 169,000
Total current assets 1,101,000 857,000
Non-current assets    
Investments in associated companies 67,000 84,000
Drilling units 2,678,000 1,668,000
Restricted cash 83,000 74,000
Deferred tax assets 28,000 15,000
Equipment 9,000 10,000
Other non-current assets 71,000 93,000
Total non-current assets 2,936,000 1,944,000
Total assets 4,037,000 2,801,000
Current liabilities    
Debt due within one year 10,000 22,000
Trade accounts payable 49,000 76,000
Other current liabilities 295,000 306,000
Total current liabilities 354,000 404,000
Non-current liabilities    
Long-term debt 345,000 496,000
Deferred tax liabilities 8,000 9,000
Other non-current liabilities 251,000 190,000
Total non-current liabilities 604,000 695,000
Commitments and contingencies (see Note 25)
Equity    
Common shares of par value $0.01 per share: 375,000,000 shares authorized and 79,866,503 issued at June 30, 2023 ( December 31, 2022: 49,999,998) 799 500
Additional paid-in capital 2,738,000 1,499,000
Accumulated other comprehensive income 2,000 2,000
Retained earnings 338,000 201,000
Total equity 3,079,000 1,702,000
Total liabilities and equity 4,037,000 $ 2,801,000
Other current and non-current liabilities $ 12,000  
Number of shares 79,866,503 49,999,998
v3.23.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common shares, par value (in dollars per share) $ 0.01 $ 0.01
Common shares authorized (in shares) 375,000,000 375,000,000
Number of shares 79,866,503 49,999,998
v3.23.2
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Millions
 2 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
Cash Flows from Operating Activities      
Net profit/(loss) $ 3,706 $ (32) $ 137
Profit (loss) from continuing operations 3,739 (32) 137
Gain on disposal (33) 0 0
Net operating net loss adjustments related to discontinued operations 38 [1] 13 [1] 0 [1]
 Adjustments to reconcile net profit to net cash provided by/(used in) operating activities:      
Depreciation and amortization 17 52 73
Gain on disposals (2) 0 (7)
Share in results from associated companies (net of tax) 2 6 (14)
Deferred tax benefit (4) 4 4
Unrealized gain on derivative and foreign exchange (7) (3) (5)
Payment in kind interest 0 16 0
Amortization of discount on debt 7 (1) 0
Non-cash gain reorganization items, net (3,487) 0 0
Fresh Start valuation adjustments (266) 0 0
Change in allowance for credit losses (1) 0 0
Other cash movements in operating activities      
Payments for long-term maintenance (2) (27) (33)
Repayments made under failed sales and leaseback arrangements (11) 0 0
Changes in operating assets and liabilities, net of effect of acquisitions and disposals      
Trade accounts receivable (11) 25 (20)
Trade accounts payable 0 14 (38)
Prepaid expenses/accrued revenue 0 (6) (3)
Deferred revenue (18) 13 7
Deferred mobilization costs (4) (37) 5
Related party receivables (13) (6) 20
Other assets (4) 23 (10)
Other liabilities 4 (34) (81)
Net cash flows provided by/(used in) operating activities (56) 20 35
Cash Flows from Investing Activities      
Additions to drilling units and equipment (18) (50) (25)
Proceeds from disposal of assets 2 0 7
Funds advanced to discontinued operations (20) 0 0
Sale of investment in PES   0 43
Sale of investment in PES (94)    
Acquisition of subsidiary 0 0 24
Deposit received on Tender-Assist Units sale 0 0 17
Cash flows from investing activities (discontinued operations) 0 (10) 0
Net cash flows provided by/(used in) investing activities (130) (60) 66
Cash Flows from Financing Activities      
Proceeds from debt 175 0 0
Proceeds from convertible bond issuance 50 0 0
Repayments of secured credit facilities (160) 0 (163)
Share issuance costs 0 0 (4)
Cash flows from financing activities (discontinued operations) 20 0 0
Net cash (used in)/ provided by financing activities 85 0 (167)
Effect of exchange rate changes on cash 6 (1) 7
Net decrease in cash and cash equivalents, including restricted cash (95) (41) (59)
Cash and cash equivalents, including restricted cash 509 468 539
Included in cash and cash equivalents and restricted cash per the balance sheet 516 490 598
Included in assets of discontinued operations 88 19 0
Supplementary disclosure of cash flow information      
Interest paid 0 (17) (28)
Taxes paid (1) (6) (9)
Reorganization items, net paid $ (56) $ (8) $ 0
[1] Relates to adjustments made to the net income/loss from discontinued operations to reconcile to net cash flows from operating activities from discontinued operations. The adjustments reconcile net loss to net cash used in operating activities, other cash movements in operating activities, and changes in operating assets and liabilities, net of the effect of acquisitions and disposals. The net cash used in operating activities for the three months ended June 30, 2023, was nil (period from February 23, 2022 through June 30, 2022 (Successor) was $13 million and for the predecessor period from January 1, 2022 through February 22, 2022 was $5 million provided by).
v3.23.2
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Thousands
Total
Reorganization, chapter 11, predecessor, before adjustment
Common shares
Common shares
Reorganization, chapter 11, predecessor, before adjustment
Additional paid-in capital
Additional paid-in capital
Reorganization, chapter 11, predecessor, before adjustment
Accumulated other comprehensive loss
Accumulated other comprehensive loss
Reorganization, chapter 11, predecessor, before adjustment
Retained profit
Beginning balance (in shares) at Dec. 31, 2021 100,384,435   0 10,000,000          
Beginning balance at Dec. 31, 2021 $ (3,716,000)       $ 0 $ 3,504,000 $ (15,000)   $ (7,215,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit 3,706,000                
Issuance of Successor common stock 1,495,000     $ 500 1,499,000       (4,000)
Other comprehensive income from continued operations 1,000           1,000    
Other comprehensive loss from discontinued operations (3,000)           (3,000)    
Recycling of PES AOCI on deconsolidation 16,000           16,000    
Net profit from continuing operations 3,739,000               3,739,000
Net loss from discontinued operations $ (33,000)               (33,000)
Cancellation of Predecessor equity (in shares) (100,384,435)     (10,038,000)          
Cancellation of Predecessor equity $ 0         (3,504,000) 1,000   3,513,000
Other comprehensive income $ 14,000                
Ending balance (in shares) at Feb. 22, 2022 49,999,998   0 0          
Ending balance at Feb. 22, 2022 $ 1,499,000 $ (3,809,000)     1,499,000 0 0 $ (1,000) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit 4,000               4,000
Ending balance (in shares) at Mar. 31, 2022     0 0          
Ending balance at Mar. 31, 2022 $ 1,503,000       1,499,000 0 0   4,000
Beginning balance (in shares) at Feb. 22, 2022 49,999,998   0 0          
Beginning balance at Feb. 22, 2022 $ 1,499,000 $ (3,809,000)     1,499,000 0 0 $ (1,000) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit (32,000)                
Issuance of Successor common stock 299                
Other comprehensive income 3,000                
Ending balance (in shares) at Jun. 30, 2022     0 0          
Ending balance at Jun. 30, 2022 1,470,000       1,499,000 0 3,000   (32,000)
Beginning balance (in shares) at Mar. 31, 2022     0 0          
Beginning balance at Mar. 31, 2022 1,503,000       1,499,000 0 0   4,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit (36,000)               (36,000)
Other comprehensive income 3,000           3,000    
Ending balance (in shares) at Jun. 30, 2022     0 0          
Ending balance at Jun. 30, 2022 $ 1,470,000       1,499,000 $ 0 3,000   (32,000)
Beginning balance (in shares) at Dec. 31, 2022 49,999,998   0            
Beginning balance at Dec. 31, 2022 $ 1,702,000       1,499,000   2,000   201,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit $ 43,000               43,000
Ending balance (in shares) at Mar. 31, 2023 49,999,998   0            
Ending balance at Mar. 31, 2023 $ 1,745,000       1,499,000   2,000   244,000
Beginning balance (in shares) at Dec. 31, 2022 49,999,998   0            
Beginning balance at Dec. 31, 2022 $ 1,702,000       1,499,000   2,000   201,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit 137,000                
Other comprehensive income $ 0                
Ending balance (in shares) at Jun. 30, 2023 79,866,503   1,000,000            
Ending balance at Jun. 30, 2023 $ 3,079,000       2,738,000   2,000   338,000
Beginning balance (in shares) at Mar. 31, 2023 49,999,998   0            
Beginning balance at Mar. 31, 2023 $ 1,745,000       1,499,000   2,000   244,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net profit 94,000               94,000
Shares issued (in shares)     1,000,000            
Issuance of Successor common stock 1,244,000       1,243,000        
Share issuance costs (4,000)       (4,000)        
Other comprehensive income $ 0                
Ending balance (in shares) at Jun. 30, 2023 79,866,503   1,000,000            
Ending balance at Jun. 30, 2023 $ 3,079,000       $ 2,738,000   $ 2,000   $ 338,000
v3.23.2
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
 2 Months Ended 4 Months Ended
Feb. 22, 2022
Jun. 30, 2022
Statement of Cash Flows [Abstract]    
Net operating net loss adjustments related to discontinued operations $ 5,000 $ 13,000
v3.23.2
General information
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General information General information
We are an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry. Our primary business is the ownership and operation of drillships, semi-submersible rigs and jackup rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. We contract our drilling units to drill wells for our customers on a dayrate basis. Our customers include oil super-majors, state-owned national oil companies and independent oil and gas companies. In addition, we provide management services to certain affiliated entities.
As of June 30, 2023 we owned a total of 22 drilling rigs, of which 17 were operating (inclusive of three leased to the Gulfdrill LLC ("Gulfdrill") joint venture and one leased to the Sonadrill joint venture) and five were cold stacked. The 17 operating units include eleven floaters (comprising seven 7th generation drillships, three 6th generation drillships and one benign environment semi-submersible), two harsh environment units (comprising one semi-submersible unit and one jackup), three jackups, and one tender-assist unit.
As of June 30, 2023, the three tender-assist units, as well as the three jackups leased to the Gulfdrill joint venture, were classified as held for sale. Refer to note Note 27 – Assets held for sale of the accompanying financial statements for further details. The disposal of the three tender-assist units completed on July 28, 2023.
In addition to our owned assets, we manage seven rigs owned by third parties: five rigs owned by SeaMex Holdings Ltd. ("SeaMex") and two rigs owned by Sonangol. Following the disposal of Paratus Energy Services Ltd. (formerly Seadrill New Finance Limited) ("PES") on March 14, 2023, we issued termination notices for (i) the Master Services Agreement by and between PES and Seadrill Management Ltd (“SML”), dated January 20, 2022 (the “Paratus MSA”), and (ii) the Master Services Agreement by and among SeaMex Holdings, certain operating companies party thereto and SML, dated January 20, 2022 (the “SeaMex MSA”), respectively. The Paratus MSA terminated on July 12, 2023 (subject to certain transitional services being provided), and the SeaMex MSA will terminate on September 10, 2023. The Paratus MSA termination did not have a material impact on the Company's financial results, likewise, we do not anticipate the SeaMex MSA termination to have a material impact on the financial condition of the Company.
As used herein, the term "Predecessor" refers to the financial position and results of operations of Seadrill Limited prior to, and including, February 22, 2022. This is also applicable to terms "we", "our", "Group" or "Company" in the context of events on and prior to February 22, 2022. As used herein, the term "Successor" refers to the financial position and results of operations of Seadrill Limited (previously Seadrill 2021 Limited) after February 22, 2022 ("the Effective Date"). This is also applicable to terms "new Successor", "we", "our", "Group" or "Company" in the context of events after February 22, 2022.
The use herein of such terms as "Group", "organization", "we", "us", "our" and "its", or references to specific entities, is not intended to be a precise description of corporate relationships.
Basis of presentation
The Consolidated Financial Statements are presented in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The amounts are presented in United States dollar ("US dollar", "$" or "US$") rounded to the nearest million, unless otherwise stated. They include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity in which we are the primary beneficiary.
In January 2022, we disposed of 65% of our equity interest in PES and in October 2022, we disposed of seven jackup units with contract in the Kingdom of Saudi Arabia (the "KSA Business"). Both transactions represented strategic shifts in Seadrill's operations which were deemed to have a major effect on its operations and financial results in FY 2022 and going forward and therefore both were reclassified as discontinued operations. As such their results have been reported separately for current and comparative periods.
Following the sale of the KSA Business, our organizational structure has been simplified, consolidating our operations into a single organization. In light of these changes, the information provided to the Chief Operating Decision Maker ("CODM") has been adapted to reflect the updated operational structure during the six months ended June 30, 2023. As a result, we have updated the reportable segments disclosed externally. This has been implemented for all periods covered by the report. Please refer to note 6 - Segment Information.
The accompanying unaudited interim financial statements, in the opinion of management, include all material adjustments that are considered necessary for a fair statement of the Company’s financial statements in accordance with generally accepted accounting principles in the United States of America. The accompanying unaudited interim financial statements do not include all of the disclosures required in complete annual financial statements. These financial statements should be read in conjunction with our annual financial statements filed with the SEC on Form 20-F for the year ended December 31, 2022 (SEC File No. 001-39327).
The financial information in this report has been prepared on the basis that we will continue as a going concern, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business as they come due.
Basis of consolidation
We consolidate companies where we control over 50% of voting rights, and entities where we hold a variable interest and are the primary beneficiary. A VIE is a legal entity where equity at risk is not enough to finance its activities, or equity interest holders lack power to direct activities or receive expected returns. We are the primary beneficiary of a VIE when we have the power to direct activities that impact economic performance and the right to receive benefits or absorb losses. We exclude subsidiaries, even if fully owned, if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated.
Acquisition of Aquadrill LLC
On April 3, 2023 (the "Closing Date"), Seadrill completed the acquisition of Aquadrill LLC ("Aquadrill"), an offshore drilling rig owner. Pursuant to the Agreement and Plan of Merger (the "Merger Agreement") dated December 22, 2022, by and among Seadrill, Aquadrill (formerly Seadrill Partners LLC) and Seadrill Merger Sub, LLC, a Marshall Islands limited liability company (“Merger Sub”), Merger
Sub merged with and into Aquadrill, with Aquadrill surviving the merger as a wholly owned subsidiary of Seadrill (the “Merger”). In connection with the Merger, and pursuant to the Merger Agreement, Seadrill exchanged consideration consisting of (i) 29.9 million Seadrill common shares, (ii) $30 million settled by tax withholding in lieu of common shares, and (iii) cash consideration of $1 million. At the Closing Date, Aquadrill unitholders represented approximately 37% of Seadrill's post-Merger issued and outstanding shares.
Through the acquisition of Aquadrill in April 2023, we added four drillships, one semi-submersible, and three tender-assist units to our fleet. Refer to Note 29 - Business Combinations for further detail.
Emergence from Chapter 11 proceedings
On February 22, 2022 (Predecessor), Seadrill Limited and certain of its subsidiaries which filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court ("Debtors"), completed its comprehensive restructuring and emerged from Chapter 11 proceedings. Please refer to Note 3 - "Chapter 11" for further details.
Fresh Start accounting
Seadrill qualified for fresh start accounting following its emergence from bankruptcy on the Effective Date, in accordance with the provisions set forth in ASC 852. This resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
Under fresh start accounting, Seadrill allocated the court approved reorganization value to its individual assets based on their estimated fair values on the Effective Date. Reorganization value represents the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Seadrill will continue to present financial information for any periods before the adoption of fresh start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as required by ASC Topic 205, Presentation of Financial Statements. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Refer to Note 4 - "Fresh Start Accounting" for further details
Significant accounting policies
The accounting policies adopted in the preparation of the unaudited interim financial statements are consistent with those followed in the preparation of our annual audited Consolidated Financial Statements for the year ended December 31, 2022 with the exception of the following addition:
Arrangements with MSA Managers
On completion of the Aquadrill acquisition on April 3, 2023, Seadrill assumed arrangements related to the management of the former Aquadrill rigs. These existing arrangements were with offshore drilling contractors including affiliates of Diamond Offshore Drilling, Inc., Vantage Drilling International, and Energy Drilling Management Pte Ltd. (collectively, the “MSA Managers”), governed by master service or similar agreements (“MSAs”).
Under the MSAs, certain former Aquadrill rigs are chartered to an MSA Manager who then contracts with a third-party customer to provide drilling services, providing all necessary crew and other required services and supplies needed to provide those services. The charter arrangements are structured such that all revenues from the end customer and all contract expenses are passed through to Seadrill. The MSA Manager also charges a fee for the services provided. While this fee is variable to align contract objectives between us and the Manager, the majority of economic risk and reward over the arrangement resides with Seadrill.
For accounting purposes, we consider each arrangement as a single unified contract between Seadrill and the end customer with the MSA Manager acting as both a lease broker and subcontractor in providing services to the end customer. Similar to arrangements where Seadrill provides drilling services directly to an end-customer using its owned rigs, the arrangement has both lease and non-lease components. We apply the practical expedient per ASC 842-10-15-42 which permits us to account for the arrangement based on the predominant component in the arrangement, which we consider to be the non-lease component.
Accordingly, we account for these arrangements under the guidance of ASC 606 – Revenue from Contracts with Customers. We recognize all revenues from the end-customers and all operating expenditures incurred by the MSA Manager and passed back to us, together with all MSA Manager fees, as operating expenses. In addition, where the MSA Manager incurs capital or long-term-maintenance expenditures on the units, these costs are also passed to us and accounted for as drilling unit additions. More generally, the accounting for revenue and expenses related to these arrangements follows our published accounting policies as described in our most recent 20-F annual report.
v3.23.2
Recent Accounting Pronouncements
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Recent accounting pronouncements Recent accounting pronouncements
Recently issued accounting standards
There are currently no accounting standard updates ("ASUs") issued since the reporting date of our Form 20-F report, for the year ended December 31, 2022, that are expected to materially affect our Consolidated Financial Statements and related disclosures in future periods.
v3.23.2
Chapter 11
 6 Months Ended
Jun. 30, 2023
Reorganizations [Abstract]  
Chapter 11 Chapter 11
Seadrill Chapter 11 Process
i. Chapter 11 filing
The Debtors filed voluntary petitions for reorganization under the Chapter 11 proceedings in the Bankruptcy Court on February 7, 2021 and February 10, 2021 (the “Petition Date”). These filings triggered a stay on enforcement of remedies with respect to our debt obligations.
These filings excluded the Seadrill New Finance Limited group ("NSNCo"), as Seadrill and the NSNCo noteholders negotiated a refinancing outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the “Plan Support Agreement”) with certain holders of claims under the Company’s 12 prepetition credit facilities (the “Prepetition Credit Agreements”), and Hemen Holdings Ltd (“Hemen”). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the “Disclosure Statement”) and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the “Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the First Lien Facility, and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the “Rights Offering”).
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the “Backstop Parties” and together, the “Rights Offering Participants”), received the right to lend up to $300 million under the First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted New Seadrill Common Shares as of the Effective Date. The First Lien Facility was structured as (i) a $175 million term loan (the “Term Loan Facility”) and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted New Seadrill Common Shares as of the Effective Date (the “Equity Commitment Premium”); and (b) paid in cash a premium (the “Commitment Premium”) equal to 7.50% of the $300 million in total commitments under the First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the “Convertible Bond”) was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the “Conversion Shares”) at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital. Upon conversion, the Company reclassified the liability component to equity with no gain or loss recognized.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the convertible bond, the Company issued 83.00% of the Company’s equity to Credit Agreement claimants, 12.50% to the Rights Offering Participants, 4.25% to the Backstop Parties through the Equity Commitment Premium, and the remaining 0.25% to Class 9 Predecessor shareholders. The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% allocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder—— %5.00 %
Total shares issued on emergence49,999,998100.00 %100.00 %
NSNCo Restructuring
As part of Seadrill’s wider process, NSNCo, the holding company for investments in SeaMex, Seabras Sapura, and Archer, concluded a separate restructuring process on January 20, 2022. The restructuring was achieved using a pre-packaged Chapter 11 process and had the following major impacts:
1.     Holders of the senior secured notes issued by NSNCo released Seadrill from all guarantees and securities previously provided by Seadrill in respect of the notes;
2.     Seadrill sold 65% of its equity interest in NSNCo to the holders of NSNCo senior secured notes. Seadrill's equity interest thereby decreased to 35% which was recognized as an equity method investment; and
3.     Reinstatement of the notes in full on amended terms.
Related to the NSNCo restructuring, the noteholders also financed a restructuring of the bank debt of the SeaMex joint venture. This enabled NSNCo to subsequently acquire a 100% equity interest in the SeaMex joint venture by way of a credit bid, which was executed on November 2, 2021.
Upon effectiveness of NSNCo's bankruptcy on January 20, 2022, Seadrill sold 65% of its equity interest in NSNCo, recognizing its 35% retained interest as an equity method investment. The ceding of control occurred 9 days prior on January 11, 2022, the petition date when the Bankruptcy Court first assumed the power to approve all significant actions in the entity. Separately, the determination of held-for-sale and discontinued operations was made at year end and described in the 2021 Form 20-F. Subsequent to its emergence from its pre-packaged bankruptcy, NSNCo was renamed Paratus Energy Services Ltd ("Paratus" or "PES").
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd (“SFL”), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements. The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig will be redelivered to SFL upon assignment of the ConocoPhillips drilling contract to SFL. The interim transition bareboat agreement with SFL provides that Seadrill will continue to operate the West Linus until the rig is delivered back to SFL for a period of time estimated to last approximately 6 to 9 months from Seadrill’s emergence. The amended charter no longer contains a purchase obligation and resulted in the derecognition of the rig asset of $175 million and a liability of $161 million at emergence from Chapter 11 proceedings on February 22, 2022. Additionally, $7 million of cash held as collateral was returned to SFL. The interim transition bareboat agreement was accounted for as a short-term operating lease.
Other matters
i. Liabilities subject to compromise
Liabilities subject to compromise distinguish prepetition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise prior to the Company's emergence from Chapter 11 proceedings are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
ii. Interest expense
The Debtors discontinued recording interest on the under-secured debt facilities from the Petition Date, in line with the guidance of ASC 852-10. Contractual interest on liabilities subject to compromise not reflected in the Consolidated Statements of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor).
iii. Reorganization items, net
Incremental costs incurred directly as a result of the bankruptcy filing and any gains or losses on adjustment to the expected allowed claim value under the plan of reorganization are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), and the period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on settlement of liabilities subject to compromise (a)
————3,581
Fresh Start valuation adjustments (b)
————242
Loss on deconsolidation of Paratus Energy Services (c)
————(112)
Advisory and professional fees (d)
—(5)—(9)(44)
Gain on write-off of related party payables—————
Expense of predecessor Directors & Officers insurance policy————(17)
Remeasurement of terminated lease to allowed claim
—————
Interest income on surplus cash
————1
Total reorganization items, net
—(5)—(9)3,651
Attributable to:
Continuing operations—(5)—(9)3,683
Discontinued operations————(32)
a.Gain on liabilities subject to compromise
On emergence from Chapter 11 proceedings, we settled liabilities subject to compromise in accordance with the Plan. This includes extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. Refer to Note 4 - "Fresh Start accounting" for further information.
b.     Fresh Start valuation adjustments
On emergence from Chapter 11 proceedings and under the application of Fresh Start accounting, we allocated the reorganization value to our assets and liabilities based on their estimated fair values. The effects of the application of Fresh Start accounting applied as of February 22, 2022. The new basis of our assets and liabilities are reflected in the Consolidated Balance Sheet at June 30, 2023 (Successor) and December 31, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 4 - "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.Fresh Start accounting
Fresh Start accounting
Upon emergence from bankruptcy, Seadrill qualified for and adopted Fresh Start accounting in accordance with the provisions set forth in ASC 852, which resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
The criteria requiring Fresh Start accounting are: (i) the reorganization value of the Seadrill’s assets immediately prior to confirmation of
the Plan was less than the total of all post-petition liabilities and allowed claims and (ii) the holders of the then-existing voting shares of the Predecessor (or legacy entity prior to the Effective Date) received less than 50% of the voting shares of the Successor outstanding upon emergence from bankruptcy.
Fresh Start accounting requires a reporting entity to present its assets, liabilities, and equity at their reorganization value amounts as of the date of emergence from bankruptcy on February 22, 2022. However, the Company will continue to present financial information for any periods before the adoption of Fresh Start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as is required in ASC Topic 205, Presentation of Financial Statements (“ASC 205”). ASC 205 states that financial statements are required to be presented comparably from year to year, with any exceptions to comparability clearly disclosed. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Reorganization Value
Under Fresh Start accounting, we allocated the reorganization value to Seadrill's individual assets based on their estimated fair values in conformity with ASC Topic 805, Business Combinations (''ASC 805''), and ASC Topic 820, Fair Value Measurement. Deferred income taxes were calculated in conformity with ASC Topic 740, Income Taxes (''ASC 740''). Reorganization value is viewed as the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Enterprise value represents the estimated fair value of an entity’s shareholders’ equity plus long-term debt and other interest-bearing liabilities less unrestricted cash and cash equivalents. As set forth in the Disclosure Statement approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $1,795 million and $2,396 million, with a mid-point of $2,095 million. For U.S. GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the
contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital (“WACC”), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares and Equipment
The valuation of our capital spares and equipment, including spare parts and capitalized IT software, was determined utilizing the cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and economic obsolescence.
iii. Drilling and management services contracts
We recognized both favorable and unfavorable contracts based on the income approach utilizing a discounted cash flow analysis, comparing the signed contractual dayrate against the global contract assumptions applied in our drilling unit fair value assessment. The cash flows were discounted at an adjusted market participant WACC.
The management services contracts were fair valued based on an excess earnings methodology, adjusted for the incremental cost of services, working capital, tax, and contributory asset charges, with future cash flows discounted at an adjusted market participant WACC.
For the management incentive fee payable to Seadrill as part of the management service agreement with Paratus, an option pricing model was used to estimate the fair value of the fee.
iv. Leases
The fair value of the West Linus and West Hercules leases were estimated by comparing against assumed global market contract assumptions over the same time period.
v. Investments in associated companies
The fair value of the equity investments in associated companies was based primarily on the income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate, and an estimated tax rate.
vi. Long-term debt
The fair values of the Term Loan Facility and Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible Bonds was split in two components: (i) straight debt and (ii) conversion option. The straight debt component was derived through a discounted cash flow analysis. The conversion option component was based on an option pricing model, which forecasts equity volatility and compares the potential conversion redemption against equity movements in industry peers.
Consolidated Balance Sheet
The adjustments included in the following Consolidated Balance Sheet reflect the consummation of the transactions contemplated by the Plan and carried out by the Company (“Reorganization Adjustments”) and the fair value adjustments as a result of the application of Fresh Start accounting (“Fresh Start Adjustments”). The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)−336
Restricted cash135(50)(b)−85
Accounts receivable, net169−−169
Amount due from related parties, net42−−42
Asset held for sale - current63−11(k)74
Other current assets (u)
194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81−(17)(l)64
Drilling units (u)
1,434(175)(d)316(m)1,575
Restricted cash69−−69
Deferred tax assets8−1(n)9
Equipment11−(2)(o)9
Asset held for sale - non-current345−(34)(m,p)311
Other non-current assets (u)
13−26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt−951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bonds50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of New Seadrill Common Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of New Seadrill Common Shares to the Rights Offering Participants(187)
Issuance of New Seadrill Common Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bonds50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of New Seadrill Common Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of New Seadrill Common Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of New Seadrill Common Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.2
Fresh Start Accounting
 6 Months Ended
Jun. 30, 2023
Reorganizations [Abstract]  
Fresh Start accounting Chapter 11
Seadrill Chapter 11 Process
i. Chapter 11 filing
The Debtors filed voluntary petitions for reorganization under the Chapter 11 proceedings in the Bankruptcy Court on February 7, 2021 and February 10, 2021 (the “Petition Date”). These filings triggered a stay on enforcement of remedies with respect to our debt obligations.
These filings excluded the Seadrill New Finance Limited group ("NSNCo"), as Seadrill and the NSNCo noteholders negotiated a refinancing outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the “Plan Support Agreement”) with certain holders of claims under the Company’s 12 prepetition credit facilities (the “Prepetition Credit Agreements”), and Hemen Holdings Ltd (“Hemen”). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the “Disclosure Statement”) and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the “Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the First Lien Facility, and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the “Rights Offering”).
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the “Backstop Parties” and together, the “Rights Offering Participants”), received the right to lend up to $300 million under the First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted New Seadrill Common Shares as of the Effective Date. The First Lien Facility was structured as (i) a $175 million term loan (the “Term Loan Facility”) and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted New Seadrill Common Shares as of the Effective Date (the “Equity Commitment Premium”); and (b) paid in cash a premium (the “Commitment Premium”) equal to 7.50% of the $300 million in total commitments under the First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the “Convertible Bond”) was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the “Conversion Shares”) at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital. Upon conversion, the Company reclassified the liability component to equity with no gain or loss recognized.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the convertible bond, the Company issued 83.00% of the Company’s equity to Credit Agreement claimants, 12.50% to the Rights Offering Participants, 4.25% to the Backstop Parties through the Equity Commitment Premium, and the remaining 0.25% to Class 9 Predecessor shareholders. The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% allocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder—— %5.00 %
Total shares issued on emergence49,999,998100.00 %100.00 %
NSNCo Restructuring
As part of Seadrill’s wider process, NSNCo, the holding company for investments in SeaMex, Seabras Sapura, and Archer, concluded a separate restructuring process on January 20, 2022. The restructuring was achieved using a pre-packaged Chapter 11 process and had the following major impacts:
1.     Holders of the senior secured notes issued by NSNCo released Seadrill from all guarantees and securities previously provided by Seadrill in respect of the notes;
2.     Seadrill sold 65% of its equity interest in NSNCo to the holders of NSNCo senior secured notes. Seadrill's equity interest thereby decreased to 35% which was recognized as an equity method investment; and
3.     Reinstatement of the notes in full on amended terms.
Related to the NSNCo restructuring, the noteholders also financed a restructuring of the bank debt of the SeaMex joint venture. This enabled NSNCo to subsequently acquire a 100% equity interest in the SeaMex joint venture by way of a credit bid, which was executed on November 2, 2021.
Upon effectiveness of NSNCo's bankruptcy on January 20, 2022, Seadrill sold 65% of its equity interest in NSNCo, recognizing its 35% retained interest as an equity method investment. The ceding of control occurred 9 days prior on January 11, 2022, the petition date when the Bankruptcy Court first assumed the power to approve all significant actions in the entity. Separately, the determination of held-for-sale and discontinued operations was made at year end and described in the 2021 Form 20-F. Subsequent to its emergence from its pre-packaged bankruptcy, NSNCo was renamed Paratus Energy Services Ltd ("Paratus" or "PES").
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd (“SFL”), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements. The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig will be redelivered to SFL upon assignment of the ConocoPhillips drilling contract to SFL. The interim transition bareboat agreement with SFL provides that Seadrill will continue to operate the West Linus until the rig is delivered back to SFL for a period of time estimated to last approximately 6 to 9 months from Seadrill’s emergence. The amended charter no longer contains a purchase obligation and resulted in the derecognition of the rig asset of $175 million and a liability of $161 million at emergence from Chapter 11 proceedings on February 22, 2022. Additionally, $7 million of cash held as collateral was returned to SFL. The interim transition bareboat agreement was accounted for as a short-term operating lease.
Other matters
i. Liabilities subject to compromise
Liabilities subject to compromise distinguish prepetition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise prior to the Company's emergence from Chapter 11 proceedings are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
ii. Interest expense
The Debtors discontinued recording interest on the under-secured debt facilities from the Petition Date, in line with the guidance of ASC 852-10. Contractual interest on liabilities subject to compromise not reflected in the Consolidated Statements of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor).
iii. Reorganization items, net
Incremental costs incurred directly as a result of the bankruptcy filing and any gains or losses on adjustment to the expected allowed claim value under the plan of reorganization are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), and the period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on settlement of liabilities subject to compromise (a)
————3,581
Fresh Start valuation adjustments (b)
————242
Loss on deconsolidation of Paratus Energy Services (c)
————(112)
Advisory and professional fees (d)
—(5)—(9)(44)
Gain on write-off of related party payables—————
Expense of predecessor Directors & Officers insurance policy————(17)
Remeasurement of terminated lease to allowed claim
—————
Interest income on surplus cash
————1
Total reorganization items, net
—(5)—(9)3,651
Attributable to:
Continuing operations—(5)—(9)3,683
Discontinued operations————(32)
a.Gain on liabilities subject to compromise
On emergence from Chapter 11 proceedings, we settled liabilities subject to compromise in accordance with the Plan. This includes extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. Refer to Note 4 - "Fresh Start accounting" for further information.
b.     Fresh Start valuation adjustments
On emergence from Chapter 11 proceedings and under the application of Fresh Start accounting, we allocated the reorganization value to our assets and liabilities based on their estimated fair values. The effects of the application of Fresh Start accounting applied as of February 22, 2022. The new basis of our assets and liabilities are reflected in the Consolidated Balance Sheet at June 30, 2023 (Successor) and December 31, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 4 - "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.Fresh Start accounting
Fresh Start accounting
Upon emergence from bankruptcy, Seadrill qualified for and adopted Fresh Start accounting in accordance with the provisions set forth in ASC 852, which resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
The criteria requiring Fresh Start accounting are: (i) the reorganization value of the Seadrill’s assets immediately prior to confirmation of
the Plan was less than the total of all post-petition liabilities and allowed claims and (ii) the holders of the then-existing voting shares of the Predecessor (or legacy entity prior to the Effective Date) received less than 50% of the voting shares of the Successor outstanding upon emergence from bankruptcy.
Fresh Start accounting requires a reporting entity to present its assets, liabilities, and equity at their reorganization value amounts as of the date of emergence from bankruptcy on February 22, 2022. However, the Company will continue to present financial information for any periods before the adoption of Fresh Start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as is required in ASC Topic 205, Presentation of Financial Statements (“ASC 205”). ASC 205 states that financial statements are required to be presented comparably from year to year, with any exceptions to comparability clearly disclosed. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Reorganization Value
Under Fresh Start accounting, we allocated the reorganization value to Seadrill's individual assets based on their estimated fair values in conformity with ASC Topic 805, Business Combinations (''ASC 805''), and ASC Topic 820, Fair Value Measurement. Deferred income taxes were calculated in conformity with ASC Topic 740, Income Taxes (''ASC 740''). Reorganization value is viewed as the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Enterprise value represents the estimated fair value of an entity’s shareholders’ equity plus long-term debt and other interest-bearing liabilities less unrestricted cash and cash equivalents. As set forth in the Disclosure Statement approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $1,795 million and $2,396 million, with a mid-point of $2,095 million. For U.S. GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the
contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital (“WACC”), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares and Equipment
The valuation of our capital spares and equipment, including spare parts and capitalized IT software, was determined utilizing the cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and economic obsolescence.
iii. Drilling and management services contracts
We recognized both favorable and unfavorable contracts based on the income approach utilizing a discounted cash flow analysis, comparing the signed contractual dayrate against the global contract assumptions applied in our drilling unit fair value assessment. The cash flows were discounted at an adjusted market participant WACC.
The management services contracts were fair valued based on an excess earnings methodology, adjusted for the incremental cost of services, working capital, tax, and contributory asset charges, with future cash flows discounted at an adjusted market participant WACC.
For the management incentive fee payable to Seadrill as part of the management service agreement with Paratus, an option pricing model was used to estimate the fair value of the fee.
iv. Leases
The fair value of the West Linus and West Hercules leases were estimated by comparing against assumed global market contract assumptions over the same time period.
v. Investments in associated companies
The fair value of the equity investments in associated companies was based primarily on the income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate, and an estimated tax rate.
vi. Long-term debt
The fair values of the Term Loan Facility and Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible Bonds was split in two components: (i) straight debt and (ii) conversion option. The straight debt component was derived through a discounted cash flow analysis. The conversion option component was based on an option pricing model, which forecasts equity volatility and compares the potential conversion redemption against equity movements in industry peers.
Consolidated Balance Sheet
The adjustments included in the following Consolidated Balance Sheet reflect the consummation of the transactions contemplated by the Plan and carried out by the Company (“Reorganization Adjustments”) and the fair value adjustments as a result of the application of Fresh Start accounting (“Fresh Start Adjustments”). The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)−336
Restricted cash135(50)(b)−85
Accounts receivable, net169−−169
Amount due from related parties, net42−−42
Asset held for sale - current63−11(k)74
Other current assets (u)
194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81−(17)(l)64
Drilling units (u)
1,434(175)(d)316(m)1,575
Restricted cash69−−69
Deferred tax assets8−1(n)9
Equipment11−(2)(o)9
Asset held for sale - non-current345−(34)(m,p)311
Other non-current assets (u)
13−26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt−951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bonds50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of New Seadrill Common Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of New Seadrill Common Shares to the Rights Offering Participants(187)
Issuance of New Seadrill Common Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bonds50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of New Seadrill Common Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of New Seadrill Common Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of New Seadrill Common Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.2
Current Expected Credit Losses
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Current Expected Credit Losses Current expected credit lossesThe current expected credit loss model applies to our external trade receivables and related party receivables. Our external customers are international oil companies, national oil companies, and large independent oil companies. There has been no change in the allowance for external or related party trade receivables during the six months ended June 30, 2023. The expected credit loss allowance on related party balances as at June 30, 2023 was $1 million (December 31, 2022: $1 million).
v3.23.2
Segment information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment information Segment information
Operating segments
Following the sale of the KSA Business in October 2022, our organizational structure has been simplified, consolidating our operations into a single organization. In light of these changes, the information provided to our chief operating decision maker was adapted to reflect the updated operational structure during the six months ended June 30, 2023. As a result, we have updated the reportable segments disclosed externally from Harsh Environment, Floaters, and Jackups to a single operating segment. This has been implemented for all periods covered by the report.
Geographic segment data
Revenues
Revenues are attributed to geographical segments based on the country of operations for drilling activities, i.e. the country where the revenues are generated. The following table presents our revenues by geographic area:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
United States133 43 190 56 20 
Brazil85 25 167 41 19 
Angola65 72 128 97 43 
Norway58 72 110 106 78 
Canada— 29 — 29 — 
Other (1)
73 12 85 17 9 
Total operating revenues414 253 680 346 169 
(1) Other represents countries in which we operate that individually had revenues representing less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (1)
Drilling unit fixed assets by geographic area based on location as at end of the period are as follows:
(In $ millions)As at June 30, 2023As at December 31,
2022
United States934 275 
Brazil715 714 
Norway417 312 
Qatar (2)
— 144 
Other (3)
612 223 
Drilling units2,678 1,668 
(1)     Asset locations at the end of a period are not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during such period.
(2)     Reflects the three jackups leased to our Gulfdrill joint venture, which have been classified as held for sale as of June 30, 2023.
(3)     Other represents countries in which we operate that individually had fixed assets representing less than 10% of total fixed assets for any of the periods presented.
Major Customers
We had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
BP16 %— %10 %— %— %
Sonadrill16 %18 %19 %17 %9 %
Petrobras15 %— %18 %— %— %
Vår Energi9 %12 %10 %13 %11 %
LLOG8 %8 %10 %8 %7 %
Equinor5 %12 %7 %9 %10 %
ConocoPhillips5 %16 %6 %16 %13 %
Sonangol— %2 %— %3 %11 %
Lundin— %— %— %1 %12 %
Other26 %32 %20 %33 %27 %
v3.23.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from contracts with customers
The following table provides information about receivables and contract liabilities from our contracts with customers:
(In $ millions)As at June 30, 2023As at December 31,
2022
Accounts receivable, net217 137 
Current contract liabilities (classified within other current liabilities)(30)(19)
Non-current contract liabilities (classified within other non-current liabilities)(40)(42)
Significant changes in the contract liabilities balances during the three and six months ended June 30, 2023 (Successor) are as follows:
(In $ millions)Contract Liabilities
Net contract liability at January 1, 2023 (Successor)(61)
Amortization of revenue that was included in the beginning contract liability balance5 
Cash received, excluding amounts recognized as revenue(17)
Net contract liability at March 31, 2023 (Successor)(73)
Aquadrill acquisition(1)
Amortization of revenue that was included in the beginning contract liability balance6 
Cash received, excluding amounts recognized as revenue(2)
Net contract liability at June 30, 2023 (Successor)(70)
Significant changes in the contract liabilities balances during the period, from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor) are as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2022 (Predecessor)  (35)
Amortization of revenue that was included in the beginning contract liability balance  16 
Net contract liability at February 22, 2022 (Predecessor)(19)
Net contract liability at February 23, 2022 (Successor)  (19)
Cash received, excluding amounts recognized as revenue(3)
Net contract liability at March 31, 2022 (Successor)(22)
Amortization of revenue that was included in the beginning contract liability balance14 
Cash received, excluding amounts recognized as revenue(22)
Net contract liability at June 30, 2022 (Successor)(30)
The Company does not have any material contract assets.
v3.23.2
Other revenues
 6 Months Ended
Jun. 30, 2023
Revenues [Abstract]  
Other revenues Other revenue
Other revenues consist of the following:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Leasing revenues (a)
7 7 14 9 4 
Other (b)
3 — 6 — 1 
Total other revenues10 7 20 9 5 
(a) Leasing revenue represents revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our related parties. Refer to Note 24 - "Related party transactions".
(b) On July 1, 2022, Seadrill novated its drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as lease revenue, on a straight-line basis, over the lease term. This lease is considered to form part of Seadrill’s investment in the joint venture, Sonadrill. Accordingly, we recorded a $25 million increase to our investment in Sonadrill at the commencement of the West Gemini lease to Sonadrill on July 1, 2022.
v3.23.2
Other operating items
 6 Months Ended
Jun. 30, 2023
Other Income and Expenses [Abstract]  
Other operating items Other operating items
Other operating items consist of the following:
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on disposals3 — 7 — 2 
Total other operating items3 — 7 — 2 
v3.23.2
Interest expense
 6 Months Ended
Jun. 30, 2023
Interest Expense [Abstract]  
Interest expense Interest expenses
Interest expense consists of the following:
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Cash interest on debt facilities(12)(30)(27)(41)— 
Interest on SFL leases— — — — (7)
Fees and other(1)— (2)1 — 
Interest expense(13)(30)(29)(40)(7)
Cash interest on debt facilities
We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
First-lien senior secured(5)(3)(10)(5)— 
Second lien senior secured(6)(26)(15)(35)— 
Unsecured convertible bond(1)(1)(2)(1)— 
Cash interest on debt facilities(12)(30)(27)(41)— 
Interest on SFL Leases
Interest on SFL leases reflects the cost incurred on capital lease agreements between Seadrill and SFL for the West Taurus, West Linus and West Hercules. During the reorganization, the West Taurus lease was rejected and the West Linus and West Hercules were modified to be operating leases, resulting in no further expense being recorded through this line item for the Successor.
v3.23.2
Taxation
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Taxation Taxation
Income tax expense for the three and six months ended June 30, 2023 was $13 million and $14 million, respectively, for the period from January 1, 2022 through February 22, 2022 (Predecessor): $2 million and for period from February 23, 2022 through June 30, 2022 (Successor) was $8 million).
The income tax expense for the three months ended June 30, 2023 was primarily due to $5 million increase in ordinary tax charges relating to Aquadrill entities and increase in our Uncertain Tax Positions by $2 million and deferred tax expense of $6 million primarily linked to unwinding of deferred tax assets recognized for West Neptune, Sevan Louisiana, West Vela and West Auriga. The effective tax rate has moved from 28.6% credit three months ended June 30, 2022 to 12.1% expense for the three months ended June 30, 2023 mainly due to the improved profitability for the Aquadrill sub-group and Seadrill as a Group.
Seadrill Limited is incorporated in Bermuda, where a tax exemption has been granted until 2035. Other jurisdictions in which Seadrill's subsidiaries operate are taxable based on rig operations. A loss in one jurisdiction may not be offset against taxable income in other jurisdictions. Thus, we may pay tax within some jurisdictions even though we might have losses in others.
Tax authorities in certain jurisdictions examine our tax returns and some have issued assessments. We are defending our tax positions in those jurisdictions.
The Brazilian tax authorities have issued a series of assessments with respect to our returns for certain years up to 2017 for an aggregate amount equivalent to $124 million including interest and penalties. As part of the appeal process, the first-tier judicial court has ruled in favor of Seadrill during the year of 2021. However, the tax authorities have since filed a counter-appeal to the second tier judicial court during 2022. The relevant group companies are robustly contesting these assessments including filing the relevant appeals to the tax authorities and counter-appeal to the higher court.
The Norwegian tax authorities have issued assessments for certain years up to 2018 for an aggregate amount equivalent to $20 million including interest and penalties. The relevant group company is robustly contesting the assessment including filing relevant appeal.
The Nigerian tax authorities have issued a series of claims and assessments both directly and lodged through the previous Chapter 11 proceedings, with respect to returns for subsidiaries for certain years up to 2016 for an aggregate amount equivalent to $171 million. The relevant group companies are robustly contesting these assessments including filing relevant appeals in Nigeria.
The Kuwaiti tax authorities have issued a series of assessments with respect to our returns for years up to 2015 for an aggregate amount equivalent to $12 million including interest and penalties. The relevant group company is robustly contesting these assessments including filing relevant appeals. Although the relevant company has been sold as part of the Jackup Sale, Seadrill has indemnified ADES for this exposure.
The Mexican tax authorities have issued a series of assessments with respect to our returns for certain years up to 2014 for an aggregate amount equivalent to $82 million, including interest and penalties. The relevant group companies are robustly contesting these assessments including filing relevant appeals.
The Ghana tax authorities have issued an assessment with respect to our returns for certain years up to 2018 for an aggregate amount equivalent to $18 million including interest and penalties. As part of the acquisition of Aquadrill, the assessment is being robustly contested including filing relevant appeals against the High Court and the Court of Appeals.
An adverse outcome on these proposed assessments, although considered unlikely, could result in a material adverse impact on our Consolidated Balance Sheets, Statements of Operations or Cash Flows.
v3.23.2
Earnings/(Loss) per share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Earnings/(Loss) per share Earnings per share
The computation of basic earnings/(loss) per share (“EPS/LPS”) is based on the weighted average number of shares outstanding during the period. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. There were no dilutive instruments in the Predecessor period, but the effect of the convertible note in the Successor period is dilutive when the Company is in a profit-making position. Refer to Note 18 – ''Debt" for further details' on the instrument.
The components of the numerator for the calculation of basic and diluted EPS were as follows:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Profit (loss) from continuing operations94 (36)137 (32)3,739 
Loss from discontinued operations— — — — (33)
Profit (loss) available to stockholders94 (36)137 (32)3,706 
Effect of dilution (interest on convertible bond)2 — 3 — — 
Diluted profit available to stockholders96 (36)140 (32)3,706 
The components of the denominator for the calculation of basic and diluted EPS were as follows:
SuccessorSuccessorPredecessor
 (In millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Basic earnings per share: 
Weighted average number of common shares outstanding80 50 65 50 100 
Diluted earnings per share: 
Effect of dilution3 — 3 — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution83 50 68 50 100 


The basic and diluted earnings per share were as follows:
SuccessorSuccessorPredecessor
(In $)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Basic earnings per share from continuing operations1.18(0.72)2.11(0.64)37.25
Diluted earnings per share from continuing operations1.16(0.72)2.07(0.64)37.25
Basic earnings per share1.18(0.72)2.11(0.64)36.92
Diluted earnings per share1.16(0.72)2.07(0.64)36.92
v3.23.2
Restricted cash
 6 Months Ended
Jun. 30, 2023
Restricted Cash and Investments [Abstract]  
Restricted cash Restricted cash
Restricted cash as at June 30, 2023 and December 31, 2022 was as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Demand deposit pledged as collateral for tax related guarantee83 74 
Cash held in escrow23 23 
Accounts pledged as collateral for performance bonds and similar guarantees11 10 
Other10 11 
Total restricted cash127 118 
Restricted cash is presented in our Consolidated Balance Sheets as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Current restricted cash44 44 
Non-current restricted cash83 74 
Total restricted cash127 118 
v3.23.2
Other Assets
 6 Months Ended
Jun. 30, 2023
Other Assets [Abstract]  
Other Assets Other assets
As at June 30, 2023 and December 31, 2022, other assets included the following:
(In $ millions)As at June 30, 2023As at December 31, 2022
Deferred contract costs105 111 
Taxes receivable58 42 
Prepaid expenses46 37 
Favorable drilling and management services contracts19 42 
Reimbursable amounts due from customers8 8 
Right of use asset7 9 
Derivative asset - interest rate cap— 5 
Other29 8 
Total other assets272 262 
Other assets were presented in our Consolidated Balance Sheet as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Other current assets201 169 
Other non-current assets71 93 
Total other assets272 262 
Favorable drilling contracts and management services contracts
The gross carrying amounts and accumulated amortization included in 'Other current assets' and 'Other non-current assets' for favorable contracts in the Consolidated Balance Sheet are as follows:
The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
Gross carrying amountAccumulated amortizationNet carrying amount
As at January 1, 202396 (54)42 
PES Disposal(13)— (13)
Amortization— (9)(9)
As at March 31, 202383 (63)20 
Aquadrill acquisition7 — 7 
Amortization— (8)(8)
As at June 30, 202390 (71)19 
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)266 (257)9 
Balance before reorganization and fresh start adjustments266 (257)9 
Fresh Start accounting(170)257 87 
As at February 22, 2022 (Predecessor)96 — 96 
As at February 23, 2022 (Successor)96 — 96 
Amortization— (5)(5)
As at March 31, 2022 (Successor)96 (5)91 
Amortization— (16)(16)
As at June 30, 2022 (Successor)96 (21)75 
The amortization is recognized in the Consolidated Statements of Operations as "Depreciation and amortization". As of June 30, 2023, the weighted average remaining amortization period for the favorable contracts is 5 months and will be fully amortized in 2023.
v3.23.2
Investment in associated companies
 6 Months Ended
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investment in associated companies Investment in associated companies
As at June 30, 2023 and December 31, 2022, the carrying values of our investments in associated companies were as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Sonadrill59 49 
Gulfdrill8 4 
Paratus Energy Services— 31 
Total investment in associated companies67 84 
Sonadrill
Sonadrill is a joint venture that presently operates three drillships focusing on opportunities in Angolan waters. Seadrill owns a 50% stake in Sonadrill, with the remaining 50% interest owned by Sonangol EP ("Sonangol"). Both companies initially committed to charter two units each into the joint venture. As of June 30, 2023, Sonadrill leased three drillships, including the Libongos and Quenguela from Sonangol, and the West Gemini from Seadrill. Seadrill manages all three units for the joint venture.
The Libongos has been operating within the joint venture since 2019, and the Quenguela commenced operations on its maiden contract in March 2022. On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract. The West Gemini is leased to Sonadrill at a nominal charter rate based on a commitment made under the terms of the joint venture agreement.
Seadrill's investment in the Sonadrill joint venture includes initial equity capital and certain other contingent commitments, including the commitment to charter up to two drillships to the joint venture at a nominal charter rate, contingent on Sonadrill obtaining drilling contracts for the units. The lease of the West Gemini to Sonadrill for the duration of the contracts for a nominal charter rate is considered part of Seadrill’s investment in the joint venture. As such, the company recorded a liability equal to the fair value of the lease at the
commencement of the West Gemini lease to Sonadrill, with the offsetting entry being a basis difference against the investment in Sonadrill.
The remaining committed Seadrill rig will be leased to the joint venture once Sonadrill secures a drilling contract.
Gulfdrill
Seadrill owns a 50% stake in Gulfdrill, a joint venture that operates five premium jackups in Qatar with Qatargas. The remaining 50% interest is owned by Gulf Drilling International ("GDI"), which manages all five rigs. three of Seadrill's jackup rigs are leased to the joint venture, namely the West Castor, West Telesto, and West Tucana. The two additional units are leased from a third-party shipyard, and all costs associated with these units are borne by Gulfdrill.
During the second quarter, Seadrill commenced a sales process for Gulfdrill joint venture, as well as the three benign environment jackup rigs (West Castor, West Telesto, and West Tucana) currently leased to the Gulfdrill joint venture. Whilst the tender process is ongoing, the fact of a potential sale was announced on June 26, 2023. Refer to Note 27 - Assets held for sale for further information.
Paratus Energy Services Ltd
Paratus Energy Services Ltd ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex, Seabras Sapura, and Archer. On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023 for total consideration of $44 million. As the total consideration received approximated the book value disposed, a minor gain has been recognized in the income statement. In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings with a termination notice regarding (i) the Paratus MSA and (ii) the SeaMex MSA, respectively. The Paratus MSA terminated on July 12, 2023 (subject to certain transitional services being provided), and the SeaMex MSA will terminate on September 10, 2023. The Paratus MSA termination did not have a material impact on the Company's financial results, likewise, we do not anticipate that the SeaMex MSA termination to have a materially impact on the financial condition of the Company.
v3.23.2
Drilling units
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Drilling units Drilling units
The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 20231,761 (93)1,668 
Additions21 — 21 
Disposals(1)1 — 
Depreciation— (31)(31)
As at March 31, 20231,781 (123)1,658 
Additions37 — 37 
Aquadrill acquisition1,255 — 1,255 
Depreciation— (52)(52)
Classified as held for sale (1)
(276)56 (220)
As at June 30, 20232,797 (119)2,678 
(1) Comprised of the three tender assist units, T-15, T-16, and West Vencedor, acquired as part of the Aquadrill acquisition, and the three rigs leased to the Gulfdrill joint venture, West Tucana, West Castor and West Telesto. Refer to Note 27 – Assets held for sale for further details.
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)2,241 (810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23 — 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (2)
(211)36 (175)
Fresh Start accounting (3)
(452)768 316 
As at February 22, 2022 (Predecessor)1,575 — 1,575 
As at February 23, 2022 (Successor)1,575 — 1,575 
Additions16 — 16 
Depreciation— (12)(12)
As at March 31, 2022 (Successor)1,591 (12)1,579 
Additions60 — 60 
Disposal of Sevan Brasil and Sevan Driller
(24)— (24)
Depreciation — (28)(28)
As at June 30, 2022 (Successor)1,627 (40)1,587 
(2) The lease agreements with SFL for the West Hercules and West Linus were amended such that the rigs were derecognized from drilling units in August 2021 and February 2022 respectively and replaced with right of use assets within other assets. The West Linus and West Hercules were returned to SFL in September 2022 and December 2022 respectively.
(3) On emergence from Chapter 11 proceedings, the carrying values of our drilling units were adjusted to fair value as a result of the implementation of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. Refer to Note 4 - "Fresh Start Accounting" for further information.
v3.23.2
Equipment
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Equipment Equipment
Equipment consists of office equipment, software, furniture and fittings. The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 202313 (3)10 
Depreciation— (1)(1)
As at March 31, 202313 (4)9
Aquadrill acquisition1 — 1 
Depreciation— (1)(1)
As at June 30, 202314 (5)9
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and the period from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)39 (28)11 
Balance before reorganization and fresh start adjustments39 (28)11 
Fresh Start adjustments(30)28 (2)
As at February 22, 2022 (Predecessor)9 — 9 
As at February 23, 2022 (Successor)9 — 9 
As at March 31, 2022 (Successor)9 — 9 
Additions1 — 1 
Depreciation— (1)(1)
As at June 30, 2022 (Successor)10 (1)9 
On emergence from Chapter 11 proceedings, the carrying value of our equipment was adjusted to fair value as a result of the application of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. The total net fair value adjustment to our equipment was $2 million, resulting in a loss recognized in “Reorganization items, net” in the Consolidated Statements of Operations.
v3.23.2
Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
The table below sets our external debt agreements as at June 30, 2023 and December 31, 2022:
(In $ millions)As at June 30, 2023As at December 31, 2022
Secured debt:
Term loan facility175 175 
Second lien facility115 271 
Total secured debt 290 446 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 340 496 
Exit fee
Term loan facility9 9 
Second lien facility6 13 
Total debt355 518 
Debt was presented in our Consolidated Balance Sheets as:
(In $ millions)As at June 30, 2023As at December 31, 2022
Debt due within one year10 22 
Long-term debt345 496 
Total debt 355 518 
Term Loan and Revolving Credit Facility
On emergence, we entered into a $300 million super senior secured credit facility with a syndicate of lenders secured on a first lien basis. The facility has a maturity of December 15, 2026 and consists of a $175 million term loan facility and a $125 million revolving credit facility ("RCF"), which was not drawn down as at June 30, 2023 (nor has it been drawn to date). The term loan facility and RCF, if drawn, bear interest at a margin of 7% per annum plus the secured overnight financial rate facility ("SOFR") (and any applicable credit adjustment spread). A commitment fee of 2.8% per annum is payable in respect of any undrawn portion of the RCF commitment. The facility includes an undrawn, uncommitted basket in amount of $50 million for incremental facilities pari passu with the facility for specified purposes. There is a 3% exit fee payable on principal repayments under the super senior credit facility; in addition, there is a make-whole premium payable if the facility is repaid within the first three years. We have recognized exit fees of $9 million in respect to the facility as at June 30, 2023. On July 27, 2023, we repaid this facility in full with a portion of the net proceeds from the offering of the Notes (as defined below).
Second Lien Facility
On emergence, we entered into a senior secured credit facility with a syndicate of lenders to partially reinstate the existing facilities in an aggregate amount of $683 million, secured on a second lien basis. The facility bears interest at a total margin of 12.5% per annum plus SOFR (and any applicable credit adjustment spread), and has a maturity of June, 15 2027. The above-mentioned margin is comprised of 5% cash interest; and 7.5% pay-if-you-can ("PIYC") interest, whereby, under certain liquidity conditions set out in the facility agreement, Seadrill is either required to pay the interest in cash or capitalize the interest to the principal outstanding. The PIYC interest compounds to the loan quarterly. There is a 5% exit fee required on this facility. As at June 30, 2023, we have recognized exit fees of $6 million in respect to the facility. On July 27, 2023, we repaid this facility in full with a portion of the net proceeds from the offering of the Notes (as defined below).
A mandatory payment of debt principal of $192 million and exit fee of $10 million was made against the second lien facility in October 2022. A voluntary prepayment of debt principal of $250 million and exit fee of $13 million was made against the second lien facility in November 2022. A voluntary prepayment of debt principal of $110 million and exit fee of $6 million was made in February 2023 with a further voluntary prepayment of debt principal of $40 million and exit fee of $2 million made in March 2023, alongside amortization payments in March and June 2023 as scheduled.
Unsecured convertible notes
On emergence, as part of the Reorganization, we issued a $50 million unsecured convertible bond to Hemen Holdings Ltd. Our unsecured senior convertible bond has a maturity of August 2028 and bears interest, payable quarterly in cash, at three-month US LIBOR plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the convertible bond. If not converted, a bullet repayment will become due on the maturity date.
Covenants contained in the Company's debt facilities
Seadrill is subject to certain financial covenants (such as minimum liquidity and leverage ratios) and certain non-financial covenants under our financing agreements. These non-financial covenants include, but are not limited to, liens on all our drilling units (such as insurance obligations and drilling unit valuations), certain restrictions on additional indebtedness and investments or acquisitions, and certain restrictions on the payment of dividends. Our debt facilities include cross-default provisions, whereby, in certain circumstances, a default under one given facility might result in defaults under other facilities.
Debt maturities
The outstanding debt as at June 30, 2023 (Successor) was repayable as follows, for the years ending December 31:
(In $ millions)Term LoanSecond LienConvertible NoteTotal repayments
2023— 4 — 4 
2024— 10 — 10 
2025— 10 — 10 
2026184 10 — 194 
2027— 87 — 87 
2028 and thereafter— — 50 50 
Total debt principal and exit fee payments184 121 50 355 
Debt refinancing
In July 2023 Seadrill issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the “Notes”). Subsequently, in August 2023, Seadrill issued an additional $75 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the “Incremental Notes”), maturing on August 1, 2030.
The net proceeds from the issuance of the Notes were used to: (i) prepay in full the outstanding amounts under our existing secured debt facilities and (ii) pay fees associated with exiting such secured debt facilities. A total of $187 million was paid to satisfy the first lien facility, including principal, interest, and exit fees, along with an additional make-whole payment of $10 million. The second lien facility was completely repaid with a total payment of $123 million, which covered principal, interest, and exit fees. The remainder of the net proceeds from will be used for general corporate purposes.
Please refer to Note 30 – Subsequent events for further details on this refinancing.
v3.23.2
Other liabilities
 6 Months Ended
Jun. 30, 2023
Payables and Accruals [Abstract]  
Other liabilities Other liabilities
As at June 30, 2023 and December 31, 2022, other liabilities included the following:
(In $ millions)As at June 30, 2023As at December 31, 2022
Uncertain tax provisions169 85
Unfavorable drilling contracts89 70
Accrued expenses
80 124
Contract liabilities70 61
Employee withheld taxes, social security and vacation payments32 47
Taxes payable24 29
Deposit received on Tender-Assist Units sale17 — 
Lease liabilities7 9
Accrued interest expense2 4
Other liabilities56 67 
Total other liabilities546 496 
Other liabilities are presented in our Consolidated Balance Sheet as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Other current liabilities295 306 
Other non-current liabilities251 190 
Total other liabilities546 496 
Unfavorable drilling contracts and management services contracts
The gross carrying amounts and accumulated amortization included in 'Other current liabilities' and 'Other non-current liabilities' for unfavorable contracts in the Consolidated Balance Sheet are as follows:
The following table summarizes the movement in unfavorable drilling contracts and management services contracts for the six months ended June 30, 2023:
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 202385 (15)70 
Amortization— (6)(6)
As at March 31, 202385 (21)64 
Aquadrill acquisition49 — 49 
Amortization— (24)(24)
As at June 30, 2023134 (45)89 
The following table summarizes the movement in unfavorable drilling contracts and management services contracts for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)66 (60)6 
Balance before reorganization and fresh start adjustments66 (60)6 
Fresh Start accounting19 60 79 
As at February 22, 2022 (Predecessor)85 — 85 
As at February 23, 2022 (Successor)85 — 85 
Amortization— (3)(3)
As at March 31, 2022 (Successor)85 (3)82 
Amortization — (5)(5)
As at June 30, 2022 (Successor)85 (8)77 
The amortization is recognized in the Consolidated Statements of Operations as "Depreciation and amortization". As of June 30, 2023, the weighted average remaining amortization period for the unfavorable contracts is 22 months. The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31
(In $ millions)Remainder of 2023202420252026 and thereafterTotal
Amortization of unfavorable contracts37 30 19 3 89 
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
Current leasing arrangements
We have operating leases relating to our premises, for which we are the lessee. The most significant leases are for our offices in London, Liverpool, Stavanger, Houston, Rio de Janeiro, and Luanda. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We continue to lease three of our benign environment jackup rigs, West Castor, West Telesto and West Tucana, to our joint venture, Gulfdrill, for a contract with GDI in Qatar. As of June 30, 2023, these rigs have been classified as held for sale; please refer to Note 27 – Assets held for sale for further details. On July 1, 2022 we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Lease fair value and Chapter 11
In accordance with bankruptcy guidance, Seadrill follows specific guidance for assumed leases under ASC 842 and ASC 805. Liabilities and assets associated with assumed leases are recognized as of the date of emergence in accordance with the provisions of ASC 805. Leases are one of the limited exceptions to the fair value recognition and measurement principles under ASC 805. At emergence, assumed leases are remeasured using the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise), the remaining lease payments, and the updated discount rate for the successor entity reflective of the new lease term. Additionally, under this guidance, the successor entity is required to retain the predecessor’s previous lease classification, unless the lease is modified.
Further, in accordance with ASC 805, Seadrill adjusted its acquired operating lease right-of-use ("ROU") assets to the amount of the corresponding lease liabilities, taking into account any favorable or unfavorable terms of the lease compared to market terms. To determine any favorable or unfavorable terms, Seadrill considered all the terms of the lease, including rent payments, options for renewal or termination, purchase options, and lease incentives.
You may find further details of the adjustments recorded on fresh start accounting within Note 4 - "Fresh Start Accounting".
Lease liabilities (Short-term & Long-term)
In accordance with ASC 805, acquired operating lease liabilities should be measured as if they were new leases following the guidance under ASC 842 (e.g., reassessment of the lease term, incremental borrowing rate (“IBR”), lease payments, purchase options). Therefore, all assumed lease liabilities were measured at the present value of remaining lease payments discounted at the IBR of the successor on the date of remeasurement (i.e., the Effective Date).
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2023 are as follows:
(In $ millions)Years Ended December 31:
Remainder of 20232 
20242 
20252 
2026 and thereafter3 
Total9 
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheets as at June 30, 2023 and December 31, 2022:
(In $ millions)As at June 30, 2023As at December 31, 2022
Total undiscounted cash flows9 11 
Less discount(2)(2)
Operating lease liability7 9 
Of which:
Current3 3 
Non-current4 6 
Total7 9 
Supplementary lease information
The following table gives supplementary information regarding our lease accounting for the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022, the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor):
SuccessorSuccessorPredecessor
(In $ million)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating lease cost:
Operating lease cost2143204
Short-term lease cost—1—21
Total lease cost2153225
Other information:
Cash paid for lease liabilities- operating cash flows2153225
ROU assets obtained in exchange for lease liabilities—4—424
Weighted-average remaining lease term in months5121512122
Weighted-average discount rate10 %9 %10 %9 %9 %
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of June 30, 2023, were as follows. For avoidance of doubt, these estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31
202320 
202453 
202547 
2026 and thereafter6 
Total (1)
126 

(1) These rigs have been classified as held for sale for accounting purposes and, as such, depending on the timing of the future disposal, the associated revenue may not all be recognized by Seadrill.
Refer to Note 8 – Other revenue for details of the revenues recorded in respect of the above leases.
Leases Leases
Current leasing arrangements
We have operating leases relating to our premises, for which we are the lessee. The most significant leases are for our offices in London, Liverpool, Stavanger, Houston, Rio de Janeiro, and Luanda. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We continue to lease three of our benign environment jackup rigs, West Castor, West Telesto and West Tucana, to our joint venture, Gulfdrill, for a contract with GDI in Qatar. As of June 30, 2023, these rigs have been classified as held for sale; please refer to Note 27 – Assets held for sale for further details. On July 1, 2022 we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Lease fair value and Chapter 11
In accordance with bankruptcy guidance, Seadrill follows specific guidance for assumed leases under ASC 842 and ASC 805. Liabilities and assets associated with assumed leases are recognized as of the date of emergence in accordance with the provisions of ASC 805. Leases are one of the limited exceptions to the fair value recognition and measurement principles under ASC 805. At emergence, assumed leases are remeasured using the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise), the remaining lease payments, and the updated discount rate for the successor entity reflective of the new lease term. Additionally, under this guidance, the successor entity is required to retain the predecessor’s previous lease classification, unless the lease is modified.
Further, in accordance with ASC 805, Seadrill adjusted its acquired operating lease right-of-use ("ROU") assets to the amount of the corresponding lease liabilities, taking into account any favorable or unfavorable terms of the lease compared to market terms. To determine any favorable or unfavorable terms, Seadrill considered all the terms of the lease, including rent payments, options for renewal or termination, purchase options, and lease incentives.
You may find further details of the adjustments recorded on fresh start accounting within Note 4 - "Fresh Start Accounting".
Lease liabilities (Short-term & Long-term)
In accordance with ASC 805, acquired operating lease liabilities should be measured as if they were new leases following the guidance under ASC 842 (e.g., reassessment of the lease term, incremental borrowing rate (“IBR”), lease payments, purchase options). Therefore, all assumed lease liabilities were measured at the present value of remaining lease payments discounted at the IBR of the successor on the date of remeasurement (i.e., the Effective Date).
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2023 are as follows:
(In $ millions)Years Ended December 31:
Remainder of 20232 
20242 
20252 
2026 and thereafter3 
Total9 
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheets as at June 30, 2023 and December 31, 2022:
(In $ millions)As at June 30, 2023As at December 31, 2022
Total undiscounted cash flows9 11 
Less discount(2)(2)
Operating lease liability7 9 
Of which:
Current3 3 
Non-current4 6 
Total7 9 
Supplementary lease information
The following table gives supplementary information regarding our lease accounting for the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022, the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor):
SuccessorSuccessorPredecessor
(In $ million)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating lease cost:
Operating lease cost2143204
Short-term lease cost—1—21
Total lease cost2153225
Other information:
Cash paid for lease liabilities- operating cash flows2153225
ROU assets obtained in exchange for lease liabilities—4—424
Weighted-average remaining lease term in months5121512122
Weighted-average discount rate10 %9 %10 %9 %9 %
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of June 30, 2023, were as follows. For avoidance of doubt, these estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31
202320 
202453 
202547 
2026 and thereafter6 
Total (1)
126 

(1) These rigs have been classified as held for sale for accounting purposes and, as such, depending on the timing of the future disposal, the associated revenue may not all be recognized by Seadrill.
Refer to Note 8 – Other revenue for details of the revenues recorded in respect of the above leases.
v3.23.2
Common shares
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Common shares Common shares
Share capital as at June 30, 2023 (Successor) and December 31, 2022 (Successor) was as follows:
Issued and fully paid share capital
SharesPar value each$ thousands
As at January 1, 2022 and balance before reorganization and fresh start adjustments100,384,435 0.10 10,038 
Cancellation of Predecessor equity(100,384,435)0.10 (10,038)
Issuance of Successor common stock49,999,998 0.01 500 
As at February 22, 2022 (Predecessor)49,999,998 0.01 500 
As at February 23, 2022, December 31, 2022 and March 31, 2023 (Successor) 49,999,998 0.01 500 
Shares issued to Aquadrill unitholders and equity award holders 29,866,505 0.01 299 
As at June 30, 202379,866,503 0.01 799 
Please refer to Note 3 - ''Chapter 11'' for further details on the changes to share capital in 2022.
In connection with the Aquadrill acquisition, Seadrill issued approximately 29.9 million shares to Aquadrill unitholders and equity award holders, representing approximately 37% of the post-Merger issued and outstanding Shares. Please refer to Note 29 - Business Combinations for further details.
v3.23.2
Accumulated other comprehensive (loss)/income
 6 Months Ended
Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive (loss)/income Accumulated other comprehensive income
Accumulated other comprehensive loss for the six months ended June 30, 2023 were as follows:
(In $ millions) 
Actuarial gain relating to pensionShare in unrealized loss from associated companiesChange in debt component on Archer bondTotal
As at January 1, 20232 — — 2 
Other comprehensive income— — — — 
As at March 31, 20232 — — 2 
Other comprehensive income— — — — 
As at June 30, 20232 — — 2 
Accumulated other comprehensive income/(loss) for the periods from January 1, 2022 through February 22, 2022 (Predecessor) and February 23, 2022 through March 31, 2022, and June 30, 2022 (Successor) were as follows:
(In $ millions) 
Actuarial (loss)/gain relating to pensionShare in unrealized loss from associated companiesChange in debt component on Archer bondTotal
As at January 1, 2022 (Predecessor) (2)(19)6 (15)
Other comprehensive income from continuing operations1 — — 1 
Other comprehensive loss from discontinued operations— (2)(1)(3)
Recycling of accumulated other comprehensive loss on sale of PES— 21 (5)16 
Balance before reorganization and fresh start adjustments(1)— — (1)
Reset accumulated other comprehensive loss1 — — 1 
As at February 22, 2022 (Predecessor)— — — — 
As at February 23, 2022 (Successor) — — — — 
Other comprehensive income— — — — 
As at March 31, 2022 (Successor)— — — — 
Other comprehensive income3 — — 3 
As at June 30, 2022 (Successor)3 — — 3 
v3.23.2
Risk management and financial instruments
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk management and financial instruments Risk management and financial instrumentsWe are exposed to several market risks, including credit risk, foreign currency risk and interest rate risk. Our policy is to reduce our exposure to these risks, where possible, within boundaries deemed appropriate by our management team. This may include the use of derivative instruments.
Credit risk
We have financial assets, including cash and cash equivalents, related party receivables, and other receivables. These assets expose us to credit risk arising from possible default by the counterparty. Most of the counterparties are creditworthy financial institutions or large oil and gas companies. We do not expect any significant loss to result from non-performance by such counterparties. We do not typically demand collateral in the normal course of business.
Credit risk is also considered as part of our expected credit loss provision. For details on how we estimate expected credit losses refer to Note 5 - "Current expected credit losses".
Concentration of risk 
There is a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, DNB, Credit Agricole, BTG Pactual, and JP Morgan. We consider these risks to be remote, but, from time to time, we utilize instruments such as money market deposits to manage concentration of risk with respect to cash and cash equivalents. We also have a concentration of risk with respect to customers, including affiliated companies. For details on the customers with greater than 10% of contract revenues, refer to Note 6 - "Segment information". For details on amounts due from affiliated companies, refer to Note 24 - "Related party transactions".
Foreign exchange risk
It is customary in the oil and gas industry that a majority of our revenues and expenses are denominated in U.S. dollars, which is the functional currency of most of our subsidiaries and equity method investees. However, a portion of the revenues and expenses of certain of our subsidiaries and equity method investees are denominated in other currencies. We are therefore exposed to foreign exchange gains and losses that may arise on the revaluation or settlement of monetary balances denominated in foreign currencies.
Our foreign exchange exposures primarily relate to cash and working capital balances denominated in foreign currencies. We do not expect these exposures to cause a significant amount of fluctuation in net income and do not currently hedge them. The effect of fluctuations in currency exchange rates arising from our international operations has not had a material impact on our overall operating results.
Interest rate risk
Our exposure to interest rate risk relates mainly to our floating rate debt and balances of surplus funds placed with financial institutions. Until June 15, 2023, we managed our floating rate debt risk through the use of an interest rate cap to mitigate exposure to future increases of LIBOR. The interest rate cap was not designated as a hedge and therefore we have not applied hedge accounting. The capped rate against the 3-month US LIBOR was 2.8770% and covered the period from June 15, 2018 to June 15, 2023.
The term loan and second lien debt facilities entered on emergence from Chapter 11 proceedings were referenced to the SOFR, while the Convertible Bond was referenced to 3-month US LIBOR until the discontinuation of LIBOR in June 2023, with a replacement reference rate now being implemented.
In July 2023 Seadrill issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 which were used to prepay in full the outstanding amounts under our existing secured debt facilities, significantly reducing our exposure to future interest rate increases, as the majority of our debt portfolio is on a fixed interest rate. Please refer to Note 30 – Subsequent events for further details on this refinancing.
v3.23.2
Related party transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
As of June 30, 2023, our major related parties were affiliated companies over which we held significant influence. They included the Sonadrill and Gulfdrill joint ventures and, until February 24, 2023, when we disposed of our remaining 35% interest in Paratus Energy Services Ltd. ("PES"), PES and SeaMex. PES owns 100% of SeaMex, which was also a related party until February 24, 2023, and a 50% interest in Seabras Sapura, which was also a related party for periods before January 2022.
Prior to emerging from Chapter 11 proceedings on February 22, 2022, our main related parties also included companies who were either controlled by or whose operating policies were significantly influenced by Hemen, who was a major shareholder of the Predecessor Company. On emergence, Hemen's equity interest in Seadrill substantially decreased, and as a result, companies who were either controlled by or whose policies were significantly influenced by Hemen are no longer related parties. These include SFL, Northern Ocean, Northern Drilling, Archer, Frontline, and Seatankers.
In the following sections we provide an analysis of transactions with related parties and balances outstanding with related parties.
Related party revenue
The below table provides an analysis of related party revenues for periods presented in this report.
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Management fees revenues (a)
55 46 112 60 12 
Reimbursable revenue (b)
7 4 14 5 3 
Lease revenue (c)
7 7 14 9 4 
Other (d)
3 — 6 — — 
Total related party operating revenues72 57 146 74 19 
(a) Seadrill has provided management and administrative services to Sonadrill, SeaMex, and PES, and operational and technical support services to SeaMex and Sonadrill. These services were charged to our affiliates on a cost-plus mark-up or dayrate basis. Following the disposal of our remaining 35% equity interest in PES on February 24, 2023, PES and SeaMex are no longer related parties of Seadrill and any revenue earned subsequent to that date has been excluded from the above results.
(b) We recognized reimbursable revenues from Sonadrill for project work related to the Libongos, Quenguela, and West Gemini rigs.
(c) Lease revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill.
(d) On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term.
Related party operating expenses
The below table provides an analysis of related party operating expenses for periods presented in this report.
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
West Hercules lease (e)
— — — — (3)
Total related party operating expenses— — — — (3)
(e) Seadrill incurred operating lease expense related to its lease of the West Hercules following a lease modification in August 2021 which resulted in the lease being reclassified as an operating lease rather than a finance lease. Refer to Note 20 - ''Leases'' for further details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
Related party receivable balances
The below table provides an analysis of related party receivable balances for periods presented in this report.
(In $ millions)As at June 30, 2023As at December 31, 2022
Trading and other balances (f)
8 28 
Allowance for expected credit losses (g)
(1)(1)
Total related party receivables7 27 
Of which:
Amounts due from related parties - current7 27 
(f) Trading and other balances primarily comprise receivables from Sonadrill and, as at December 31, 2022, Gulfdrill, SeaMex and PES for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(g) Allowances recognized for expected credit losses on our related party loan and trade receivables following adoption of accounting standard update 2016-13 - Measurement of Credit Losses on Financial Instruments. Refer to Note 5 - ''Current expected credit losses'' for further information.
The below table provides an analysis of the receivable balance by counterparty:
 (In $ millions)As at June 30, 2023As at December 31, 2022
Sonadrill 8 17 
Gulfdrill— 9 
PES / SeaMex— 2 
Gross amount receivable8 28 
Less: CECL allowance (1)(1)
Receivable net of CECL allowance 7 27 
Other related party transactions
We have made guarantees over performance to end customers on behalf of Sonadrill. We have not recognized a liability for any of these guarantees as we do not consider it to be probable that the guarantees would be called.
v3.23.2
Commitments and contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Legal Proceedings
From time to time we are a party, as plaintiff or defendant, to lawsuits in various jurisdictions for demurrage, damages, off-hire and other claims and commercial disputes arising from the construction or operation of our drilling units, in the ordinary course of business or in connection with our acquisition or disposal activities. We believe that the resolution of such claims will not have a material impact, individually or in the aggregate, on our operations or financial condition. Our best estimate of the outcome of the various disputes has been reflected in our unaudited Consolidated Financial Statements as of June 30, 2023 (Successor).
SFL Hercules Ltd
On March 5, 2023, Seadrill was served with a claim from SFL Hercules Ltd., filed in the Oslo District Court in Norway, relating to our redelivery of the rig West Hercules to SFL in December 2022. In its petition, SFL claims that the rig was not redelivered in the condition required under our contract with SFL and seeks damages in the amount of approximately NOK300 million (approximately $28 million). Seadrill filed a statement of defence on May 2, 2023 and SFL filed a further submission with additional claims on June 14, 2023. We are currently assessing the claim and intend to vigorously defend our position. Currently, we are unable to determine an amount or range of possible loss, if any.
Sonadrill fees claim
In March 2023, Seadrill was served with a claim from an individual (the “Claimant”) filed in the High Court of Justice, Business and Property Courts of England and Wales, King’s Bench Division, Commercial Court. The Claimant alleges breach of contract and unjust enrichment damages of approximately $72 million related to an alleged failure by the Company to pay the Claimant a fee for services in arranging the Sonadrill joint venture. We do not believe that the Claimant is entitled to the fee claimed and intend to vigorously defend our position. At this time, we are unable to determine an amount or range of possible loss, if any.
Oro Negro
The CEO of Perforadora Oro Negro, S. DE R.L. DE C.V ("Oro Negro"), a Mexican drilling rig contractor, filed a complaint personally and in his capacity as foreign representative of Oro Negro on June 6, 2019 in the United States Bankruptcy Court, Southern District of New York, within Oro Negro’s Chapter 15 proceedings ancillary to its Mexican insolvency process. The complaint names Seadrill and its joint venture partner as co-defendants along with other defendants including Oro Negro bondholders. With respect to Seadrill, the complaint asserts claims relating to alleged tortious interference but does not seek to quantify damages. On August 25, 2019, Seadrill submitted a motion to dismiss the complaint on technical legal grounds. Oro Negro responded to this motion on October 25, 2019. On August 6, 2021 the United States Bankruptcy Court was notified that the auction of Oro Negro’s assets was approved by the Mexican Concurso court. The complaint proceedings had been stayed since March 2020, and the stay was due to continue until the first to occur of April 6, 2023 or a purchase is agreed. On April 6, 2023, Oro Negro filed a stipulation and order withdrawing the complaint in full, without prejudice. As withdrawal of the complaint is without prejudice, Oro Negro retains the ability to re-file a future claim against some or all of the defendants. Seadrill intends to continue to vigorously defend against the claims Oro Negro asserts.
Nigerian Cabotage Act litigation
Seadrill Mobile Units Nigeria Ltd ("SMUNL") commenced proceedings in May 2016 against the Honourable Minister for Transportation, the Attorney General of the Federation and the Nigerian Maritime Administration and Safety Agency ("NMASA") with respect to interpretation of the Coastal and Inland Shipping (Cabotage) Act 2003 (the "Cabotage Act"). On June 14, 2019, the Federal High Court of Nigeria delivered a judgement finding that: (1) Drilling operations fall within the definition of "Coastal Trade" or "Cabotage" under the Act and (2) Drilling Rigs fall within the definition of "Vessels" under the Cabotage Act. On the basis of this decision, SMUNL and Seadrill were required to deduct 2% of their contract value and remit the same to NMASA and SMUNL was required to register for Cabotage with NMASA and pay all fees and tariffs as may be published in the guidelines that may be issued by the Minister of Transportation in accordance with the Cabotage Act. SMUNL filed an urgent notice of appeal to the Court of Appeal in July 2019 together with a request for an injunction restraining the authorities from any enforcement of the Cabotage Act pending appeal. Due to the volume of cases currently being handled by the Court of Appeal sitting in Lagos, we anticipate a decision within three to five years.
Although we intend to strongly pursue this appeal, we cannot predict the outcome of this case. We do not believe that it is probable that the ultimate liability, if any, resulting from this litigation will have a material effect on our financial position and results of operations and cash flows.
Lava Jato
The Brazilian markets have experienced heightened volatility in recent years due to the uncertainties derived from the ongoing investigations being conducted by the Office of the Brazilian Federal Prosecutor, the Brazilian Federal Police, the Brazilian Securities Commission (Comissão de Valores Mobiliários), the Securities and Exchange Commission, the U.S. Department of Justice, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) and other Brazilian and foreign public authorities, including the largest such investigation known as Lava Jato, and the impact that such investigations have on the Brazilian economy and political environment. Numerous elected officials, public servants and executives and other personnel of large and state-owned companies have been subject to investigation, arrest, criminal charges and other proceedings in connection with allegations of political corruption, including the acceptance of bribes by means of kickbacks on contracts granted by the government to several infrastructure, oil and gas and construction companies, among others. The profits of these kickbacks allegedly financed the political campaigns of political parties that were unaccounted for or not publicly disclosed and served to personally enrich the recipients of the bribery scheme.
On September 23, 2020, Seadrill's subsidiary Seadrill Serviços de Petroleo, Ltda was served with a search and seizure warrant from the Federal Police in Rio de Janeiro, Brazil as part of the phase of Operation Lava Jato relating to individuals formally associated with Seadrill Serviços. At this time, Seadrill understands that this investigation has been closed.
Individuals who have had commercial arrangements with Seadrill have been identified in the Lava Jato investigations and the investigations by the Brazilian authorities are ongoing. The outcome of certain of these investigations is uncertain, but they have already had an adverse impact on the business, image and reputation of the implicated companies, and on the general market perception of the Brazilian economy. We cannot predict whether such allegations will lead to further political and economic instability or whether new allegations against government officials or executives will arise in the future. We also cannot predict the outcome of any such allegations on the Brazilian economy, and the Lava Jato investigation including its recent phases, could adversely affect our business and operations.
Any other material disputes or litigation
During the course of the preceding 12 months, the Company has not been involved in any other material litigation or legal proceedings.
Guarantees
We have issued performance guarantees for potential liabilities that may result from drilling activities under current or previous managed rig arrangements with Sonadrill and Northern Ocean. As of June 30, 2023, we had not recognized any liabilities for these guarantees as we do not consider it probable that the guarantees will be called. As of June 30, 2023, the guarantees provided on behalf of Sonadrill have been capped at $1.1 billion (December 31, 2022:$1.1 billion), in the aggregate, across the three rigs operating in the joint venture on three active and one future contract. The guarantees provided on behalf of Northern Ocean have been capped at $100 million (December 31, 2022: $100 million).
v3.23.2
Fair value of financial instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair value of financial instruments Fair value of financial instruments
Fair value of financial instruments measured at amortized cost
The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as at June 30, 2023 and December 31, 2022 are as follows:
As at June 30, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Liabilities
First Lien Senior Secured (Level 3)
192 184 195 184 
Second Lien Senior Secured (Level 3)
121 121 284 284 
Unsecured Convertible note - debt component (Level 3)
48 50 46 50 
Financial instruments categorized as level 3
Upon emergence from Chapter 11 proceedings, our secured credit facilities were settled and replaced with the first and second lien senior notes and an unsecured convertible bond. The fair values attributed to the first and second lien debt were derived by discounting the future cash flows associated with each facility.
The fair value attributed to the unsecured convertible bond is bifurcated into two elements: the straight debt component is derived through a discounted cash flow approach, similarly to the one applied for the first and second lien debt, and the conversion option, which is derived through an option pricing model which forecasts equity volatility and compares the potential conversion redemption against historical and implied equity movements in comparable companies in our industry. The conversion option was recorded in equity at the point the bond was issued and, therefore, has not been included in the table above.
Our cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties and accounts payable are by their nature short-term. As a result, the carrying values included in our Consolidated Balance Sheets approximate fair value.
Financial instruments measured at fair value on a recurring basis
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 are as follows: 
As at June 30, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
412 412 480 480 
Restricted cash (Level 1)
127 127 118 118 
Interest rate cap derivative (Level 2)
— — 5 5 
Level 1 fair value measurements
The carrying value of cash and cash equivalents and restricted cash, which are highly liquid, is a reasonable estimate of fair value and are categorized at level 1 of the fair value hierarchy.
Level 2 fair value measurements
The fair value of the interest rate cap as at March 31, 2023 was calculated using well-established independent valuation techniques and counterparty non-performance credit risk assumptions. The calculation of the credit risk with regard to the interest rate cap was subject to a number of assumptions including an assumed credit default swap rate based on our traded debt, and recovery rate, which assumed the proportion of value recovered, given an event of default. We categorized these as level 2 of the fair value hierarchy.
v3.23.2
Assets held for sale
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Assets held for sale Assets held for sale
During the second quarter, Seadrill initiated the sale of certain non-core assets, which were reclassified as held for sale in line with ASC 360-10.
The Company acquired three tender-assist rigs (T-15, T-16, and West Vencedor) (the "Tender-Assist Units") through the Aquadrill acquisition on April 3, 2023. Sale and purchase agreements ("SPA") for these assets were executed on May 19, 2023, to certain affiliates of Energy Drilling Pte. Ltd. (“Edrill”) for an agreed aggregate sale price of approximately $85 million. The sale completed on July 28, 2023. Refer to Note 30 – Subsequent events for further details.
In addition, Seadrill commenced a sales process for three benign environment jackup rigs (West Castor, West Telesto, and West Tucana) currently leased to the Gulfdrill joint venture. Whilst the tender process is ongoing, the fact of a potential sale was announced on June 26, 2023.
Accordingly, as of June 30, 2023, the six units were classified as held for sale in our Consolidated Balance Sheet as summarized below:
(In $ millions)As at June 30, 2023
Tender-Assist Units
West Vencedor23 
T-1545 
T-1617 
Total Tender-Assist Units85 
Gulfdrill rigs
West Tucana42 
West Castor49 
West Telesto44 
Total Gulfdrill rigs135 
Total assets held for sale as at June 30, 2023220 
Discontinued Operations
The table below shows the loss from discontinued operations:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
NSNCo————(4)
Jackup Sale— — — — (29)
Total loss from discontinued operations— — — — (33)
Basic LPS: discontinued operations ($)— — — — (0.33)
Diluted LPS: discontinued operations ($)— — — — (0.33)
Disposal of interest in Paratus Energy Services Ltd.
Paratus Energy Services Ltd. ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 3 - "Chapter 11".
The sale represented a strategic shift in Seadrill's operations which had a major effect on its operations and financial results going forward and therefore we reclassified PES as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations for both the current and comparative periods.
On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023. The net gain on disposal, which is reported within Other financial items in our income statement, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Gain on sale
Initial purchase price 43 
Lender incentive fee1 
Total consideration44 
Less: Book value of PES investment(31)
Less: Management Incentive Fee intangible(13)
Gain on disposal— 
In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings with a termination notice regarding (i) the Paratus MSA and (ii) the SeaMex MSA, respectively. The Paratus MSA terminated on July 12, 2023 (subject to certain transitional services being provided), and the SeaMex MSA will terminate on September 10, 2023. The Paratus MSA termination did not have a material impact on the Company's financial results, likewise, we do not anticipate that the SeaMex MSA termination to have a materially impact on the financial condition of the Company.
For further information on Seadrill's comprehensive restructuring, including the sale of the 65% interest in Paratus Energy Services, please refer to Note 3 - "Chapter 11".
Sale of jackup units in the Kingdom of Saudi Arabia
On September 1, 2022, Seadrill entered into a share purchase agreement (the “Jackup SPA”) with subsidiaries of ADES Arabia Holding Ltd (together, “ADES”) for the sale of the entities that own and operate seven jackup units (the “Jackup Sale”) in the Kingdom of Saudi Arabia (the "KSA Business"). The Jackup Sale closed on October 18, 2022, with ADES now owning the rigs AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida, and West Leda, as well as the drilling contracts related to the rigs. ADES also now employs the crews operating the rigs in Saudi Arabia.
In December 2022, Seadrill had received $670 million in consideration from ADES and incurred deal costs of $11 million, resulting in net proceeds of $659 million. We reported an accounting gain on sale through discontinued operations of $276 million in the fourth quarter of 2022. The final sale consideration and accounting gain remain subject to further adjustment for certain indemnities and warranties provided to ADES through the sale.
The sale represented a strategic shift in Seadrill's operations which will have a major effect on its operations and financial results going forward and therefore we reclassified the KSA Business, previously included within our Jackup segment, as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations in all periods. In addition, the assets and liabilities of the KSA Business were reclassified as held for sale as of September 1, 2022. We ceased all depreciation and amortization of held for sale non-current assets at the point they qualified as held for sale.
The sale completed on October 18, 2022. As such there are no assets held for sale, or liabilities associated with assets held for sale, on the period ended June 30, 2023 and December 31, 2022 balance sheets.
Major classes of line items constituting profit/(loss) of discontinued operations:
The table below summarizes the profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by the KSA Business during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 31 — 44 18 
Total operating revenues— 31 — 44 18 
Operating expenses
Vessel and rig operating expenses— (17)— (24)(10)
Selling, general and administrative expenses— (3)— (4)(1)
Depreciation and amortization— (7)— (10)(4)
Amortization of intangibles— (4)— (5)— 
Costs associated with disposal— — — — — 
Total operating expenses— (31)— (43)(15)
Operating profit— — — 1 3 
Financial and other non-operating items
Interest expense— — — — — 
Reorganization items— — — — (32)
Other financial items— — — — — 
Net profit/(loss) before tax from discontinued operations— — — 1 (29)
Income tax expense— — — (1)— 
Net profit/(loss) after tax from discontinued operations— — — — (29)
The table below summarizes the profit and loss statement for PES during periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by PES during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through June 30, 2022
Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 12 
Total operating revenues— 12 
Operating expenses
Operating expenses— (8)
Total operating expenses— (8)
Operating profit— 4 
Financial and other non-operating items
Interest income— — 
Interest expense— (4)
Share in results from associated companies (net of tax)— (1)
Loss on impairment of investments— — 
Loss impairment of convertible bond from related party— — 
Other financial items— (2)
Total financial items— (7)
Net profit/(loss) before tax— (3)
Income tax benefit/(expense)— (1)
Net profit/(loss) after tax— (4)
v3.23.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Assets held for sale
During the second quarter, Seadrill initiated the sale of certain non-core assets, which were reclassified as held for sale in line with ASC 360-10.
The Company acquired three tender-assist rigs (T-15, T-16, and West Vencedor) (the "Tender-Assist Units") through the Aquadrill acquisition on April 3, 2023. Sale and purchase agreements ("SPA") for these assets were executed on May 19, 2023, to certain affiliates of Energy Drilling Pte. Ltd. (“Edrill”) for an agreed aggregate sale price of approximately $85 million. The sale completed on July 28, 2023. Refer to Note 30 – Subsequent events for further details.
In addition, Seadrill commenced a sales process for three benign environment jackup rigs (West Castor, West Telesto, and West Tucana) currently leased to the Gulfdrill joint venture. Whilst the tender process is ongoing, the fact of a potential sale was announced on June 26, 2023.
Accordingly, as of June 30, 2023, the six units were classified as held for sale in our Consolidated Balance Sheet as summarized below:
(In $ millions)As at June 30, 2023
Tender-Assist Units
West Vencedor23 
T-1545 
T-1617 
Total Tender-Assist Units85 
Gulfdrill rigs
West Tucana42 
West Castor49 
West Telesto44 
Total Gulfdrill rigs135 
Total assets held for sale as at June 30, 2023220 
Discontinued Operations
The table below shows the loss from discontinued operations:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
NSNCo————(4)
Jackup Sale— — — — (29)
Total loss from discontinued operations— — — — (33)
Basic LPS: discontinued operations ($)— — — — (0.33)
Diluted LPS: discontinued operations ($)— — — — (0.33)
Disposal of interest in Paratus Energy Services Ltd.
Paratus Energy Services Ltd. ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 3 - "Chapter 11".
The sale represented a strategic shift in Seadrill's operations which had a major effect on its operations and financial results going forward and therefore we reclassified PES as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations for both the current and comparative periods.
On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023. The net gain on disposal, which is reported within Other financial items in our income statement, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Gain on sale
Initial purchase price 43 
Lender incentive fee1 
Total consideration44 
Less: Book value of PES investment(31)
Less: Management Incentive Fee intangible(13)
Gain on disposal— 
In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings with a termination notice regarding (i) the Paratus MSA and (ii) the SeaMex MSA, respectively. The Paratus MSA terminated on July 12, 2023 (subject to certain transitional services being provided), and the SeaMex MSA will terminate on September 10, 2023. The Paratus MSA termination did not have a material impact on the Company's financial results, likewise, we do not anticipate that the SeaMex MSA termination to have a materially impact on the financial condition of the Company.
For further information on Seadrill's comprehensive restructuring, including the sale of the 65% interest in Paratus Energy Services, please refer to Note 3 - "Chapter 11".
Sale of jackup units in the Kingdom of Saudi Arabia
On September 1, 2022, Seadrill entered into a share purchase agreement (the “Jackup SPA”) with subsidiaries of ADES Arabia Holding Ltd (together, “ADES”) for the sale of the entities that own and operate seven jackup units (the “Jackup Sale”) in the Kingdom of Saudi Arabia (the "KSA Business"). The Jackup Sale closed on October 18, 2022, with ADES now owning the rigs AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida, and West Leda, as well as the drilling contracts related to the rigs. ADES also now employs the crews operating the rigs in Saudi Arabia.
In December 2022, Seadrill had received $670 million in consideration from ADES and incurred deal costs of $11 million, resulting in net proceeds of $659 million. We reported an accounting gain on sale through discontinued operations of $276 million in the fourth quarter of 2022. The final sale consideration and accounting gain remain subject to further adjustment for certain indemnities and warranties provided to ADES through the sale.
The sale represented a strategic shift in Seadrill's operations which will have a major effect on its operations and financial results going forward and therefore we reclassified the KSA Business, previously included within our Jackup segment, as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations in all periods. In addition, the assets and liabilities of the KSA Business were reclassified as held for sale as of September 1, 2022. We ceased all depreciation and amortization of held for sale non-current assets at the point they qualified as held for sale.
The sale completed on October 18, 2022. As such there are no assets held for sale, or liabilities associated with assets held for sale, on the period ended June 30, 2023 and December 31, 2022 balance sheets.
Major classes of line items constituting profit/(loss) of discontinued operations:
The table below summarizes the profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by the KSA Business during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 31 — 44 18 
Total operating revenues— 31 — 44 18 
Operating expenses
Vessel and rig operating expenses— (17)— (24)(10)
Selling, general and administrative expenses— (3)— (4)(1)
Depreciation and amortization— (7)— (10)(4)
Amortization of intangibles— (4)— (5)— 
Costs associated with disposal— — — — — 
Total operating expenses— (31)— (43)(15)
Operating profit— — — 1 3 
Financial and other non-operating items
Interest expense— — — — — 
Reorganization items— — — — (32)
Other financial items— — — — — 
Net profit/(loss) before tax from discontinued operations— — — 1 (29)
Income tax expense— — — (1)— 
Net profit/(loss) after tax from discontinued operations— — — — (29)
The table below summarizes the profit and loss statement for PES during periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by PES during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through June 30, 2022
Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 12 
Total operating revenues— 12 
Operating expenses
Operating expenses— (8)
Total operating expenses— (8)
Operating profit— 4 
Financial and other non-operating items
Interest income— — 
Interest expense— (4)
Share in results from associated companies (net of tax)— (1)
Loss on impairment of investments— — 
Loss impairment of convertible bond from related party— — 
Other financial items— (2)
Total financial items— (7)
Net profit/(loss) before tax— (3)
Income tax benefit/(expense)— (1)
Net profit/(loss) after tax— (4)
v3.23.2
Business Combinations
 6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combination Business Combinations
On April 3, 2023 (the "Closing Date"), Seadrill completed the acquisition of Aquadrill LLC ("Aquadrill"), an offshore drilling rig owner. Pursuant to the Agreement and Plan of Merger (the "Merger Agreement") dated December 22, 2022, by and among Seadrill, Aquadrill (formerly Seadrill Partners LLC) and Seadrill Merger Sub, LLC, a Marshall Islands limited liability company (“Merger Sub”), Merger Sub merged with and into Aquadrill, with Aquadrill surviving the merger as a wholly owned subsidiary of Seadrill (the “Merger”). In connection with the Merger, and pursuant to the Merger Agreement, Seadrill exchanged consideration consisting of (i) 29.9 million Seadrill common shares, (ii) $30 million settled by tax withholding in lieu of common shares, and (iii) cash consideration of $1 million. At the Closing Date, Aquadrill unitholders represented approximately 37% of Seadrill's post-Merger issued and outstanding shares.
As previously disclosed, the Board of Directors viewed the following factors, among others, as generally favorable in its determination and approval of the Merger: (A) the combined company is expected to (i) be in a position to serve a broader range of customers, (ii) have a more substantial presence in the offshore drilling market, (iii) take on Aquadrill drilling units without taking on a substantial cost structure, (iv) have a diversified portfolio of contract coverage and (v) given the extensive history between Aquadrill and Seadrill, be positioned to rapidly integrate the two businesses, and (B) the Seadrill management team’s familiarity with the business, assets and competitive position of Aquadrill.
As a result of the Merger, Seadrill acquired Aquadrill’s four drillships, one semi-submersible and three tender-assist units. On May 19, 2023, Seadrill entered into definitive sale and purchase agreements to sell the three tender-assist units, acquired in the Merger. The sale completed on July 28, 2023. Refer to Note 27 – Assets held for sale and Note 30 – Subsequent events for further details.
In connection with this acquisition, the Company incurred $8 million and $3 million of acquisition related expenses during the six months ended June 30, 2023 and for the period from February 23, 2022 through December 31, 2022 (Successor), respectively. Seadrill's acquisition related expenses are included in "Merger and integration related expenses" on the consolidated statements of operations. In addition, the Company incurred $4 million of issuance costs which have been reflected against the fair value of the shares as a reduction to Additional paid-in capital in the consolidated statements of changes in shareholders' equity. In addition, the Company incurred integration costs of $11 million included in "Merger and integration related expenses" on the consolidated statements of operations for the three and six months ended June 30, 2023.
We used a convenience date of April 1, 2023 (the "Convenience Date") to account for this acquisition and have recorded activity from the Convenience Date in Seadrill's second quarter results.
Purchase price allocation
The Merger will be accounted for as a business combination under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, with Seadrill being treated as the accounting acquirer. Under this method, the purchase consideration in the Merger will reflect (i) the shares issued in connection with the Merger, (ii) tax withholding liability, and (iii) cash consideration, as described above. The issued shares were recorded at $41.62 per share, the fair value on the Closing Date. Concurrently, the assets acquired and liabilities assumed were recorded on Seadrill’s consolidated balance sheet at their respective fair values. Any consideration transferred or paid in excess of the fair value of the assets acquired and liabilities assumed should be recognized as goodwill, while any excess fair value of the assets acquired and liabilities assumed beyond the consideration transferred or paid should be recognized as a bargain purchase gain. As of the date of this filing, we had completed the preliminary analysis to assign fair value to all tangible and intangible assets acquired and liabilities assumed. As such, the preliminary purchase price allocation will be subject to further refinement and may change. We expect to finalize the fair value measurements as soon as practicable, but no later than 12 months from the Closing Date. Our management estimate as of the date of this filing is that the fair value of the net assets and liabilities acquired is equal to the purchase price. Thus, no goodwill or bargain purchase gain has been recognized in the financial statements for the second quarter of 2023.
Determining the fair values of the assets and liabilities of Aquadrill requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of Aquadrill’s drilling units and other related tangible assets. Further details regarding the valuation process are described below.
i. Drilling units
To estimate the fair value of the drilling units, management primarily relied upon the income approach. The market approach was considered to substantiate a floor value for rigs where the income approach indicated a value lower than a value in-exchange. In the application of the income approach, we utilized the discounted cash flow (“DCF”) method. The DCF method involves estimating the future free cash flows of an asset and discounting these cash flows to present value. Free cash flows are generally defined as debt-free operating cash flows adjusted to reflect capital expenditure requirements.
Assumptions used in our assessment included, but were not limited to, future marketability of each drilling unit in light of the current market conditions and its current technical specifications, timing of existing and future contract awards and expected operating dayrates, operating costs, utilization rates, tax rates, discount rates, capital expenditures, market values, reactivation costs, and estimated economic useful lives. We included an allocation for corporate overhead when calculating the discounted cash flows expected to be generated from our drilling units over their remaining useful lives. The cash flows were discounted at a market participant weighted average cost of capital (“WACC”), which was derived from a blend of market participant after-tax costs of debt and market participant costs of equity, weighted by the respective percent of debt and equity to total capital, and computed using public share price information for similar publicly traded guideline companies, certain US Treasury rates, and certain risk premiums specific to the Company. The inputs and assumptions related to these assets are categorized as Level 3 in the fair value hierarchy.
ii. Drilling and management services contracts
The Company recognized intangible assets and liabilities related to drilling and management service contracts that had favorable and unfavorable terms compared to the current market at the Closing Date. The Company recorded the fair value adjustment for the off-market contract liabilities and assets to "Other current liabilities", "Other current assets", and "Other non-current assets" in the amounts of $49 million, $6 million, and $1 million respectively.
The table below summarizes the total consideration transferred at the Closing date:
(In $ millions, except per share data)Aquadrill
Shares
Final Exchange Ratio (4)
As at Acquisition
Aquadrill outstanding shares as of April 3, 202320,000,0001.4128,258,965 
Aquadrill restricted stock units122,1041.41172,527 
Aquadrill phantom award units105,7001.41149,349 
Aquadrill phantom appreciation rights570,0000.70399,576
Total Aquadrill shares converted to Seadrill shares20,797,80428,980,417 
Company Sale Bonus (1)
1,664,743 
Total Seadrill shares eligible for purchase of Aquadrill30,645,160 
Less: Tax withholding in lieu of common shares (2)
(744,150)
Less: Seadrill shares settled in cash (3)
(34,505)
Seadrill shares issued for purchase of Aquadrill29,866,505 
Seadrill share price at April 3, 2023 market close41.62 
Consideration issued in Seadrill shares1,243 
Consideration settled by tax withholding (2)
30 
Consideration settled in cash (3)
1 
Total consideration transferred1,274 
(1) Immediately prior to the Closing Date, the Sale Bonus Award Agreement, dated as of May 24, 2021, by and between Aquadrill and Steven Newman, the Chief Executive Officer and a Director of Aquadrill, was terminated and in connection with such termination at the Effective Time and in accordance with the Merger Agreement, Mr. Newman received 1,013,405 Seadrill common shares and $26 million tax withholding, paid on his behalf, in lieu of Seadrill common shares.
(2) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, the Company elected to pay $30 million of tax withholding. These shares were settled at a per share value agreed upon between the Company and the Aquadrill Board of Directors.
(3) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, certain non-employee board members elected to receive $1 million cash in lieu of Seadrill common shares. These shares were settled at a per share value agreed upon between the Company and the Aquadrill Board of Directors.
(4) Final exchange ratios calculated pursuant to the Merger Agreement.
The table below represents the preliminary purchase price allocation to the identifiable assets acquired and liabilities assumed at the Closing Date:
(In $ millions)As at Acquisition
Assets acquired:
Cash and cash equivalents51 
Restricted cash5 
Accounts receivable60 
Other current assets36 
Total current assets152 
Drilling units1,255 
Deferred tax assets19 
Equipment1 
Other non-current assets5 
Total non-current assets1,280 
Total assets acquired1,432 
Liabilities assumed:
Trade accounts payable11 
Other current liabilities69 
Total current liabilities80 
Other non-current liabilities78 
Total non-current liabilities78 
Total liabilities assumed158 
Net asset acquired1,274 
Post-merger operating results
The following table reflects Aquadrill's operating revenue and profit from continuing operations included in Seadrill's consolidated statement of operations subsequent to the Convenience Date.
(In $ millions)Three and six months ended June 30, 2023
Operating revenue131 
Profit from continuing operations46 
Pro forma financial information
The following unaudited pro forma summary presents the results of operations as if the Merger had occurred on February 23, 2022, the date of emergence from Chapter 11 for the Successor company. The pro forma summary uses estimates and assumptions based on information available at the time. We believe the estimates and assumptions are reasonable, however, actual results may have differed significantly from this pro forma financial information. The pro forma information does not purport to be indicative of results of operations that would have occurred had the Merger occurred on the basis assumed above, nor is such information indicative of our expected future results. The pro forma results of operations do not reflect any cost savings or other synergies that might have been achieved from combining the operations or any estimated costs that have not yet been incurred to integrate Aquadrill assets.
SuccessorSuccessor
(In $ millions, except per share data)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022
Operating revenue414 291 758 402 
Profit/(loss) from continuing operations82 (48)121 (67)
Basic EPS: continuing operations ($)1.03 (0.60)1.52 (0.84)
Diluted EPS: continuing operations ($)1.02 (0.60)1.50 (0.84)
These pro forma amounts have been calculated after adjusting the results to reflect (i) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to drilling units and off-market contract liabilities had been applied from February 23, 2022, (ii) certain acquisition related expenses incurred directly in connection with the Merger as if it had occurred on February 23, 2022, and (iii) removal of any pre-acquisition revenues and expenses between Seadrill and Aquadrill.
Seadrill and Aquadrill incurred total acquisition related expenses of $11 million and $8 million, respectively, of which $3 million and $2 million, respectively, were incurred during the fourth quarter of 2022. Seadrill's acquisition related expenses are included in "Merger and integration related expenses" on the consolidated statements of operations. These expenses are reflected in pro forma earnings for the period from February 23, 2022 through June 30, 2022.
As of the date of this report, the Company had completed the sale of the tender-assist rigs and is expected to complete the sale of Gulfdrill within one year. The table below summarizes the results of operations related to the tender-assist rigs and Gulfdrill rigs included in the pro forma results of operations:
SuccessorSuccessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022
Tender Rigs
Operating revenue6 — 12 — 
Loss from continuing operations(2)(2)(3)(3)
Gulfdrill
Operating revenue7 7 14 10 
Profit from continuing operations6 3 13 4 
v3.23.2
Subsequent Events
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent events
Refinancing of secured debt
On July 27, 2023, Seadrill announced that Seadrill Finance Limited has issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the “Notes”) in an offering (the “Offering”) conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”).
Subsequently, on August 8, 2023, the Company issued an additional $75 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the “Incremental Notes”). The Incremental Notes mature on August 1, 2030, and were issued at 100.75% of par.
Effective, July 27, 2023, Seadrill Ltd., along with its subsidiary, Seadrill Finance Limited, established a new Senior Secured Revolving Credit Facility (the "RCF"). The commitments under the RCF, which carries a five-year term, became available for drawdown on July 27, 2023, following the issuance of the second lien notes and repayment of Seadrill’s existing facilities. The RCF permits borrowings of up to
$225 million in revolving credit for working capital and other corporate purposes and includes an ‘accordion feature’ allowing Seadrill to increase this limit by up to an additional $100 million subject to agreement from the lenders. It also includes a provision for issuing letters of credit up to $50 million. The RCF incurs interest at a rate equal to a specified margin plus the SOFR. In addition, Seadrill is required to pay a quarterly commitment fee on any unused portion of the revolving credit.
The net proceeds of the refinancing, excluding the RCF which remains undrawn as of the date of this report, amounted to approximately $550 million after deducting all related expenses from the sum of the principal issued and the premium.
The net proceeds from the issuance of the Notes were used to: (i) prepay in full the outstanding amounts under our existing secured debt facilities and (ii) pay fees associated with exiting such secured debt facilities. A total of $187 million was paid to satisfy the first lien facility, including principal, interest, and exit fees, along with an additional make-whole payment of $10 million. The second lien facility was completely repaid with a total payment of $123 million, which covered principal, interest, and exit fees. The remainder of the net proceeds from the Offering will be used for general corporate purposes.
Sale of Tender-Assist Units
On July 28, 2023, Seadrill completed the sale of the three tender-assist units known as the West Vencedor, T-15 and T-16 (the “Tender-Assist Units”) to certain affiliates of Energy Drilling Pte. Ltd. (“Edrill”) for aggregate cash proceeds of approximately $85 million.
Share repurchase program
On August 14, 2023 the Board of Directors authorized a share repurchase program under which the Company may purchase up to $250 million of its outstanding common shares. The repurchase program does not have a fixed expiration, and may be modified, suspended or discontinued at any time. Shares may be repurchased at any time and from time to time under the program in open market purchases, privately negotiated purchases, block trades, tender offers, accelerated share repurchase transactions or other derivative transactions, through the purchase of call options or the sale of put options, or otherwise, or by any combination of the foregoing.
v3.23.2
Recent Accounting Pronouncements (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
The Consolidated Financial Statements are presented in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The amounts are presented in United States dollar ("US dollar", "$" or "US$") rounded to the nearest million, unless otherwise stated. They include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity in which we are the primary beneficiary.
In January 2022, we disposed of 65% of our equity interest in PES and in October 2022, we disposed of seven jackup units with contract in the Kingdom of Saudi Arabia (the "KSA Business"). Both transactions represented strategic shifts in Seadrill's operations which were deemed to have a major effect on its operations and financial results in FY 2022 and going forward and therefore both were reclassified as discontinued operations. As such their results have been reported separately for current and comparative periods.
Following the sale of the KSA Business, our organizational structure has been simplified, consolidating our operations into a single organization. In light of these changes, the information provided to the Chief Operating Decision Maker ("CODM") has been adapted to reflect the updated operational structure during the six months ended June 30, 2023. As a result, we have updated the reportable segments disclosed externally. This has been implemented for all periods covered by the report. Please refer to note 6 - Segment Information.
The accompanying unaudited interim financial statements, in the opinion of management, include all material adjustments that are considered necessary for a fair statement of the Company’s financial statements in accordance with generally accepted accounting principles in the United States of America. The accompanying unaudited interim financial statements do not include all of the disclosures required in complete annual financial statements. These financial statements should be read in conjunction with our annual financial statements filed with the SEC on Form 20-F for the year ended December 31, 2022 (SEC File No. 001-39327).
The financial information in this report has been prepared on the basis that we will continue as a going concern, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business as they come due.
Basis of consolidation
Basis of consolidation
We consolidate companies where we control over 50% of voting rights, and entities where we hold a variable interest and are the primary beneficiary. A VIE is a legal entity where equity at risk is not enough to finance its activities, or equity interest holders lack power to direct activities or receive expected returns. We are the primary beneficiary of a VIE when we have the power to direct activities that impact economic performance and the right to receive benefits or absorb losses. We exclude subsidiaries, even if fully owned, if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated.
Acquisition of Aquadrill LLC
On April 3, 2023 (the "Closing Date"), Seadrill completed the acquisition of Aquadrill LLC ("Aquadrill"), an offshore drilling rig owner. Pursuant to the Agreement and Plan of Merger (the "Merger Agreement") dated December 22, 2022, by and among Seadrill, Aquadrill (formerly Seadrill Partners LLC) and Seadrill Merger Sub, LLC, a Marshall Islands limited liability company (“Merger Sub”), Merger
Sub merged with and into Aquadrill, with Aquadrill surviving the merger as a wholly owned subsidiary of Seadrill (the “Merger”). In connection with the Merger, and pursuant to the Merger Agreement, Seadrill exchanged consideration consisting of (i) 29.9 million Seadrill common shares, (ii) $30 million settled by tax withholding in lieu of common shares, and (iii) cash consideration of $1 million. At the Closing Date, Aquadrill unitholders represented approximately 37% of Seadrill's post-Merger issued and outstanding shares.
Through the acquisition of Aquadrill in April 2023, we added four drillships, one semi-submersible, and three tender-assist units to our fleet. Refer to Note 29 - Business Combinations for further detail.
Fresh Start accounting
Fresh Start accounting
Seadrill qualified for fresh start accounting following its emergence from bankruptcy on the Effective Date, in accordance with the provisions set forth in ASC 852. This resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
Under fresh start accounting, Seadrill allocated the court approved reorganization value to its individual assets based on their estimated fair values on the Effective Date. Reorganization value represents the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Seadrill will continue to present financial information for any periods before the adoption of fresh start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as required by ASC Topic 205, Presentation of Financial Statements. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Refer to Note 4 - "Fresh Start Accounting" for further details
Recently issued accounting standards
Recently issued accounting standards
There are currently no accounting standard updates ("ASUs") issued since the reporting date of our Form 20-F report, for the year ended December 31, 2022, that are expected to materially affect our Consolidated Financial Statements and related disclosures in future periods.
Credit risk and concentration of risk
Credit risk
We have financial assets, including cash and cash equivalents, related party receivables, and other receivables. These assets expose us to credit risk arising from possible default by the counterparty. Most of the counterparties are creditworthy financial institutions or large oil and gas companies. We do not expect any significant loss to result from non-performance by such counterparties. We do not typically demand collateral in the normal course of business.
Credit risk is also considered as part of our expected credit loss provision. Concentration of risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, DNB, Credit Agricole, BTG Pactual, and JP Morgan. We consider these risks to be remote, but, from time to time, we utilize instruments such as money market deposits to manage concentration of risk with respect to cash and cash equivalents. We also have a concentration of risk with respect to customers, including affiliated companies.
Foreign exchange risk
Foreign exchange risk
It is customary in the oil and gas industry that a majority of our revenues and expenses are denominated in U.S. dollars, which is the functional currency of most of our subsidiaries and equity method investees. However, a portion of the revenues and expenses of certain of our subsidiaries and equity method investees are denominated in other currencies. We are therefore exposed to foreign exchange gains and losses that may arise on the revaluation or settlement of monetary balances denominated in foreign currencies.
Our foreign exchange exposures primarily relate to cash and working capital balances denominated in foreign currencies. We do not expect these exposures to cause a significant amount of fluctuation in net income and do not currently hedge them. The effect of fluctuations in currency exchange rates arising from our international operations has not had a material impact on our overall operating results.
Interest rate risk Interest rate riskOur exposure to interest rate risk relates mainly to our floating rate debt and balances of surplus funds placed with financial institutions. Until June 15, 2023, we managed our floating rate debt risk through the use of an interest rate cap to mitigate exposure to future increases of LIBOR. The interest rate cap was not designated as a hedge and therefore we have not applied hedge accounting.
Arrangements with MSA Managers
Arrangements with MSA Managers
On completion of the Aquadrill acquisition on April 3, 2023, Seadrill assumed arrangements related to the management of the former Aquadrill rigs. These existing arrangements were with offshore drilling contractors including affiliates of Diamond Offshore Drilling, Inc., Vantage Drilling International, and Energy Drilling Management Pte Ltd. (collectively, the “MSA Managers”), governed by master service or similar agreements (“MSAs”).
Under the MSAs, certain former Aquadrill rigs are chartered to an MSA Manager who then contracts with a third-party customer to provide drilling services, providing all necessary crew and other required services and supplies needed to provide those services. The charter arrangements are structured such that all revenues from the end customer and all contract expenses are passed through to Seadrill. The MSA Manager also charges a fee for the services provided. While this fee is variable to align contract objectives between us and the Manager, the majority of economic risk and reward over the arrangement resides with Seadrill.
For accounting purposes, we consider each arrangement as a single unified contract between Seadrill and the end customer with the MSA Manager acting as both a lease broker and subcontractor in providing services to the end customer. Similar to arrangements where Seadrill provides drilling services directly to an end-customer using its owned rigs, the arrangement has both lease and non-lease components. We apply the practical expedient per ASC 842-10-15-42 which permits us to account for the arrangement based on the predominant component in the arrangement, which we consider to be the non-lease component.
Accordingly, we account for these arrangements under the guidance of ASC 606 – Revenue from Contracts with Customers. We recognize all revenues from the end-customers and all operating expenditures incurred by the MSA Manager and passed back to us, together with all MSA Manager fees, as operating expenses. In addition, where the MSA Manager incurs capital or long-term-maintenance expenditures on the units, these costs are also passed to us and accounted for as drilling unit additions. More generally, the accounting for revenue and expenses related to these arrangements follows our published accounting policies as described in our most recent 20-F annual report.
v3.23.2
Chapter 11 (Tables)
 6 Months Ended
Jun. 30, 2023
Reorganizations [Abstract]  
Schedule of allocation of shares The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% allocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder—— %5.00 %
Total shares issued on emergence49,999,998100.00 %100.00 %
Schedule of liabilities subject to compromise
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Schedule of fresh-start adjustments The following table summarizes the reorganization items recognized in the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), and the period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on settlement of liabilities subject to compromise (a)
————3,581
Fresh Start valuation adjustments (b)
————242
Loss on deconsolidation of Paratus Energy Services (c)
————(112)
Advisory and professional fees (d)
—(5)—(9)(44)
Gain on write-off of related party payables—————
Expense of predecessor Directors & Officers insurance policy————(17)
Remeasurement of terminated lease to allowed claim
—————
Interest income on surplus cash
————1
Total reorganization items, net
—(5)—(9)3,651
Attributable to:
Continuing operations—(5)—(9)3,683
Discontinued operations————(32)
a.Gain on liabilities subject to compromise
On emergence from Chapter 11 proceedings, we settled liabilities subject to compromise in accordance with the Plan. This includes extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. Refer to Note 4 - "Fresh Start accounting" for further information.
b.     Fresh Start valuation adjustments
On emergence from Chapter 11 proceedings and under the application of Fresh Start accounting, we allocated the reorganization value to our assets and liabilities based on their estimated fair values. The effects of the application of Fresh Start accounting applied as of February 22, 2022. The new basis of our assets and liabilities are reflected in the Consolidated Balance Sheet at June 30, 2023 (Successor) and December 31, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 4 - "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)−336
Restricted cash135(50)(b)−85
Accounts receivable, net169−−169
Amount due from related parties, net42−−42
Asset held for sale - current63−11(k)74
Other current assets (u)
194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81−(17)(l)64
Drilling units (u)
1,434(175)(d)316(m)1,575
Restricted cash69−−69
Deferred tax assets8−1(n)9
Equipment11−(2)(o)9
Asset held for sale - non-current345−(34)(m,p)311
Other non-current assets (u)
13−26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt−951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bonds50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of New Seadrill Common Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of New Seadrill Common Shares to the Rights Offering Participants(187)
Issuance of New Seadrill Common Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bonds50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of New Seadrill Common Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of New Seadrill Common Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of New Seadrill Common Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.2
Fresh Start Accounting (Tables)
 6 Months Ended
Jun. 30, 2023
Reorganizations [Abstract]  
Reconciliation Of Enterprise Value And Reorganization Value
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
Schedule of fresh-start adjustments The following table summarizes the reorganization items recognized in the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), and the period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on settlement of liabilities subject to compromise (a)
————3,581
Fresh Start valuation adjustments (b)
————242
Loss on deconsolidation of Paratus Energy Services (c)
————(112)
Advisory and professional fees (d)
—(5)—(9)(44)
Gain on write-off of related party payables—————
Expense of predecessor Directors & Officers insurance policy————(17)
Remeasurement of terminated lease to allowed claim
—————
Interest income on surplus cash
————1
Total reorganization items, net
—(5)—(9)3,651
Attributable to:
Continuing operations—(5)—(9)3,683
Discontinued operations————(32)
a.Gain on liabilities subject to compromise
On emergence from Chapter 11 proceedings, we settled liabilities subject to compromise in accordance with the Plan. This includes extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. Refer to Note 4 - "Fresh Start accounting" for further information.
b.     Fresh Start valuation adjustments
On emergence from Chapter 11 proceedings and under the application of Fresh Start accounting, we allocated the reorganization value to our assets and liabilities based on their estimated fair values. The effects of the application of Fresh Start accounting applied as of February 22, 2022. The new basis of our assets and liabilities are reflected in the Consolidated Balance Sheet at June 30, 2023 (Successor) and December 31, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 4 - "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)−336
Restricted cash135(50)(b)−85
Accounts receivable, net169−−169
Amount due from related parties, net42−−42
Asset held for sale - current63−11(k)74
Other current assets (u)
194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81−(17)(l)64
Drilling units (u)
1,434(175)(d)316(m)1,575
Restricted cash69−−69
Deferred tax assets8−1(n)9
Equipment11−(2)(o)9
Asset held for sale - non-current345−(34)(m,p)311
Other non-current assets (u)
13−26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt−951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bonds50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of New Seadrill Common Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of New Seadrill Common Shares to the Rights Offering Participants(187)
Issuance of New Seadrill Common Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bonds50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of New Seadrill Common Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of New Seadrill Common Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of New Seadrill Common Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.2
Segment information (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of revenues and fixed assets by geographic area The following table presents our revenues by geographic area:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
United States133 43 190 56 20 
Brazil85 25 167 41 19 
Angola65 72 128 97 43 
Norway58 72 110 106 78 
Canada— 29 — 29 — 
Other (1)
73 12 85 17 9 
Total operating revenues414 253 680 346 169 
(1) Other represents countries in which we operate that individually had revenues representing less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (1)
Drilling unit fixed assets by geographic area based on location as at end of the period are as follows:
(In $ millions)As at June 30, 2023As at December 31,
2022
United States934 275 
Brazil715 714 
Norway417 312 
Qatar (2)
— 144 
Other (3)
612 223 
Drilling units2,678 1,668 
(1)     Asset locations at the end of a period are not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during such period.
(2)     Reflects the three jackups leased to our Gulfdrill joint venture, which have been classified as held for sale as of June 30, 2023.
(3)     Other represents countries in which we operate that individually had fixed assets representing less than 10% of total fixed assets for any of the periods presented.
Schedule of customer with contract revenues by major customers
We had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
BP16 %— %10 %— %— %
Sonadrill16 %18 %19 %17 %9 %
Petrobras15 %— %18 %— %— %
Vår Energi9 %12 %10 %13 %11 %
LLOG8 %8 %10 %8 %7 %
Equinor5 %12 %7 %9 %10 %
ConocoPhillips5 %16 %6 %16 %13 %
Sonangol— %2 %— %3 %11 %
Lundin— %— %— %1 %12 %
Other26 %32 %20 %33 %27 %
v3.23.2
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of contract assets and contract liabilities from contracts with customers
The following table provides information about receivables and contract liabilities from our contracts with customers:
(In $ millions)As at June 30, 2023As at December 31,
2022
Accounts receivable, net217 137 
Current contract liabilities (classified within other current liabilities)(30)(19)
Non-current contract liabilities (classified within other non-current liabilities)(40)(42)
Significant changes in the contract liabilities balances during the three and six months ended June 30, 2023 (Successor) are as follows:
(In $ millions)Contract Liabilities
Net contract liability at January 1, 2023 (Successor)(61)
Amortization of revenue that was included in the beginning contract liability balance5 
Cash received, excluding amounts recognized as revenue(17)
Net contract liability at March 31, 2023 (Successor)(73)
Aquadrill acquisition(1)
Amortization of revenue that was included in the beginning contract liability balance6 
Cash received, excluding amounts recognized as revenue(2)
Net contract liability at June 30, 2023 (Successor)(70)
Significant changes in the contract liabilities balances during the period, from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor) are as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2022 (Predecessor)  (35)
Amortization of revenue that was included in the beginning contract liability balance  16 
Net contract liability at February 22, 2022 (Predecessor)(19)
Net contract liability at February 23, 2022 (Successor)  (19)
Cash received, excluding amounts recognized as revenue(3)
Net contract liability at March 31, 2022 (Successor)(22)
Amortization of revenue that was included in the beginning contract liability balance14 
Cash received, excluding amounts recognized as revenue(22)
Net contract liability at June 30, 2022 (Successor)(30)
The Company does not have any material contract assets.
v3.23.2
Other revenues (Tables)
 6 Months Ended
Jun. 30, 2023
Revenues [Abstract]  
Other revenues
Other revenues consist of the following:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Leasing revenues (a)
7 7 14 9 4 
Other (b)
3 — 6 — 1 
Total other revenues10 7 20 9 5 
(a) Leasing revenue represents revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our related parties. Refer to Note 24 - "Related party transactions".
(b) On July 1, 2022, Seadrill novated its drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as lease revenue, on a straight-line basis, over the lease term. This lease is considered to form part of Seadrill’s investment in the joint venture, Sonadrill. Accordingly, we recorded a $25 million increase to our investment in Sonadrill at the commencement of the West Gemini lease to Sonadrill on July 1, 2022.
v3.23.2
Other operating items (Tables)
 6 Months Ended
Jun. 30, 2023
Other Income and Expenses [Abstract]  
Other operating items
Other operating items consist of the following:
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Gain on disposals3 — 7 — 2 
Total other operating items3 — 7 — 2 
v3.23.2
Interest expense (Tables)
 6 Months Ended
Jun. 30, 2023
Interest Expense [Abstract]  
Summary of interest expense
Interest expense consists of the following:
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Cash interest on debt facilities(12)(30)(27)(41)— 
Interest on SFL leases— — — — (7)
Fees and other(1)— (2)1 — 
Interest expense(13)(30)(29)(40)(7)
Cash interest on debt facilities
We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
First-lien senior secured(5)(3)(10)(5)— 
Second lien senior secured(6)(26)(15)(35)— 
Unsecured convertible bond(1)(1)(2)(1)— 
Cash interest on debt facilities(12)(30)(27)(41)— 
v3.23.2
Earnings/(Loss) per share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of calculation of basic and diluted EPS
The components of the numerator for the calculation of basic and diluted EPS were as follows:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Profit (loss) from continuing operations94 (36)137 (32)3,739 
Loss from discontinued operations— — — — (33)
Profit (loss) available to stockholders94 (36)137 (32)3,706 
Effect of dilution (interest on convertible bond)2 — 3 — — 
Diluted profit available to stockholders96 (36)140 (32)3,706 
The components of the denominator for the calculation of basic and diluted EPS were as follows:
SuccessorSuccessorPredecessor
 (In millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Basic earnings per share: 
Weighted average number of common shares outstanding80 50 65 50 100 
Diluted earnings per share: 
Effect of dilution3 — 3 — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution83 50 68 50 100 


The basic and diluted earnings per share were as follows:
SuccessorSuccessorPredecessor
(In $)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Basic earnings per share from continuing operations1.18(0.72)2.11(0.64)37.25
Diluted earnings per share from continuing operations1.16(0.72)2.07(0.64)37.25
Basic earnings per share1.18(0.72)2.11(0.64)36.92
Diluted earnings per share1.16(0.72)2.07(0.64)36.92
v3.23.2
Restricted cash (Tables)
 6 Months Ended
Jun. 30, 2023
Restricted Cash and Investments [Abstract]  
Schedule of restricted cash
Restricted cash as at June 30, 2023 and December 31, 2022 was as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Demand deposit pledged as collateral for tax related guarantee83 74 
Cash held in escrow23 23 
Accounts pledged as collateral for performance bonds and similar guarantees11 10 
Other10 11 
Total restricted cash127 118 
Restricted cash is presented in our Consolidated Balance Sheets as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Current restricted cash44 44 
Non-current restricted cash83 74 
Total restricted cash127 118 
v3.23.2
Other Assets (Tables)
 6 Months Ended
Jun. 30, 2023
Other Assets [Abstract]  
Schedule of other assets
As at June 30, 2023 and December 31, 2022, other assets included the following:
(In $ millions)As at June 30, 2023As at December 31, 2022
Deferred contract costs105 111 
Taxes receivable58 42 
Prepaid expenses46 37 
Favorable drilling and management services contracts19 42 
Reimbursable amounts due from customers8 8 
Right of use asset7 9 
Derivative asset - interest rate cap— 5 
Other29 8 
Total other assets272 262 
Other assets were presented in our Consolidated Balance Sheet as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Other current assets201 169 
Other non-current assets71 93 
Total other assets272 262 
The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
Gross carrying amountAccumulated amortizationNet carrying amount
As at January 1, 202396 (54)42 
PES Disposal(13)— (13)
Amortization— (9)(9)
As at March 31, 202383 (63)20 
Aquadrill acquisition7 — 7 
Amortization— (8)(8)
As at June 30, 202390 (71)19 
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)266 (257)9 
Balance before reorganization and fresh start adjustments266 (257)9 
Fresh Start accounting(170)257 87 
As at February 22, 2022 (Predecessor)96 — 96 
As at February 23, 2022 (Successor)96 — 96 
Amortization— (5)(5)
As at March 31, 2022 (Successor)96 (5)91 
Amortization— (16)(16)
As at June 30, 2022 (Successor)96 (21)75 
v3.23.2
Investment in associated companies (Tables)
 6 Months Ended
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of investment in associated companies
As at June 30, 2023 and December 31, 2022, the carrying values of our investments in associated companies were as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Sonadrill59 49 
Gulfdrill8 4 
Paratus Energy Services— 31 
Total investment in associated companies67 84 
v3.23.2
Drilling units (Tables)
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of drilling units
The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 20231,761 (93)1,668 
Additions21 — 21 
Disposals(1)1 — 
Depreciation— (31)(31)
As at March 31, 20231,781 (123)1,658 
Additions37 — 37 
Aquadrill acquisition1,255 — 1,255 
Depreciation— (52)(52)
Classified as held for sale (1)
(276)56 (220)
As at June 30, 20232,797 (119)2,678 
(1) Comprised of the three tender assist units, T-15, T-16, and West Vencedor, acquired as part of the Aquadrill acquisition, and the three rigs leased to the Gulfdrill joint venture, West Tucana, West Castor and West Telesto. Refer to Note 27 – Assets held for sale for further details.
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)2,241 (810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23 — 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (2)
(211)36 (175)
Fresh Start accounting (3)
(452)768 316 
As at February 22, 2022 (Predecessor)1,575 — 1,575 
As at February 23, 2022 (Successor)1,575 — 1,575 
Additions16 — 16 
Depreciation— (12)(12)
As at March 31, 2022 (Successor)1,591 (12)1,579 
Additions60 — 60 
Disposal of Sevan Brasil and Sevan Driller
(24)— (24)
Depreciation — (28)(28)
As at June 30, 2022 (Successor)1,627 (40)1,587 
v3.23.2
Equipment (Tables)
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Equipment
Equipment consists of office equipment, software, furniture and fittings. The following table summarizes the movement for the six months ended June 30, 2023 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 202313 (3)10 
Depreciation— (1)(1)
As at March 31, 202313 (4)9
Aquadrill acquisition1 — 1 
Depreciation— (1)(1)
As at June 30, 202314 (5)9
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and the period from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)39 (28)11 
Balance before reorganization and fresh start adjustments39 (28)11 
Fresh Start adjustments(30)28 (2)
As at February 22, 2022 (Predecessor)9 — 9 
As at February 23, 2022 (Successor)9 — 9 
As at March 31, 2022 (Successor)9 — 9 
Additions1 — 1 
Depreciation— (1)(1)
As at June 30, 2022 (Successor)10 (1)9 
v3.23.2
Debt (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of debt
The table below sets our external debt agreements as at June 30, 2023 and December 31, 2022:
(In $ millions)As at June 30, 2023As at December 31, 2022
Secured debt:
Term loan facility175 175 
Second lien facility115 271 
Total secured debt 290 446 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 340 496 
Exit fee
Term loan facility9 9 
Second lien facility6 13 
Total debt355 518 
Debt was presented in our Consolidated Balance Sheets as:
(In $ millions)As at June 30, 2023As at December 31, 2022
Debt due within one year10 22 
Long-term debt345 496 
Total debt 355 518 
Debt maturities
The outstanding debt as at June 30, 2023 (Successor) was repayable as follows, for the years ending December 31:
(In $ millions)Term LoanSecond LienConvertible NoteTotal repayments
2023— 4 — 4 
2024— 10 — 10 
2025— 10 — 10 
2026184 10 — 194 
2027— 87 — 87 
2028 and thereafter— — 50 50 
Total debt principal and exit fee payments184 121 50 355 
v3.23.2
Other liabilities (Tables)
 6 Months Ended
Jun. 30, 2023
Payables and Accruals [Abstract]  
Other liabilities
As at June 30, 2023 and December 31, 2022, other liabilities included the following:
(In $ millions)As at June 30, 2023As at December 31, 2022
Uncertain tax provisions169 85
Unfavorable drilling contracts89 70
Accrued expenses
80 124
Contract liabilities70 61
Employee withheld taxes, social security and vacation payments32 47
Taxes payable24 29
Deposit received on Tender-Assist Units sale17 — 
Lease liabilities7 9
Accrued interest expense2 4
Other liabilities56 67 
Total other liabilities546 496 
Other liabilities are presented in our Consolidated Balance Sheet as follows:
(In $ millions)As at June 30, 2023As at December 31, 2022
Other current liabilities295 306 
Other non-current liabilities251 190 
Total other liabilities546 496 
Movement in unfavorable drilling contracts (Predecessor)
The following table summarizes the movement in unfavorable drilling contracts and management services contracts for the six months ended June 30, 2023:
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 202385 (15)70 
Amortization— (6)(6)
As at March 31, 202385 (21)64 
Aquadrill acquisition49 — 49 
Amortization— (24)(24)
As at June 30, 2023134 (45)89 
The following table summarizes the movement in unfavorable drilling contracts and management services contracts for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through June 30, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)66 (60)6 
Balance before reorganization and fresh start adjustments66 (60)6 
Fresh Start accounting19 60 79 
As at February 22, 2022 (Predecessor)85 — 85 
As at February 23, 2022 (Successor)85 — 85 
Amortization— (3)(3)
As at March 31, 2022 (Successor)85 (3)82 
Amortization — (5)(5)
As at June 30, 2022 (Successor)85 (8)77 
Amounts relating to unfavorable contracts that Is expected to be amortized The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31
(In $ millions)Remainder of 2023202420252026 and thereafterTotal
Amortization of unfavorable contracts37 30 19 3 89 
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of future undiscounted cash flows For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2023 are as follows:
(In $ millions)Years Ended December 31:
Remainder of 20232 
20242 
20252 
2026 and thereafter3 
Total9 
Schedule of reconciliation and supplementary information
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheets as at June 30, 2023 and December 31, 2022:
(In $ millions)As at June 30, 2023As at December 31, 2022
Total undiscounted cash flows9 11 
Less discount(2)(2)
Operating lease liability7 9 
Of which:
Current3 3 
Non-current4 6 
Total7 9 
Supplementary lease information
The following table gives supplementary information regarding our lease accounting for the three and six months ended June 30, 2023 (Successor), the three months ended June 30, 2022, the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor):
SuccessorSuccessorPredecessor
(In $ million)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating lease cost:
Operating lease cost2143204
Short-term lease cost—1—21
Total lease cost2153225
Other information:
Cash paid for lease liabilities- operating cash flows2153225
ROU assets obtained in exchange for lease liabilities—4—424
Weighted-average remaining lease term in months5121512122
Weighted-average discount rate10 %9 %10 %9 %9 %
Schedule of operating subleases
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of June 30, 2023, were as follows. For avoidance of doubt, these estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31
202320 
202453 
202547 
2026 and thereafter6 
Total (1)
126 

(1) These rigs have been classified as held for sale for accounting purposes and, as such, depending on the timing of the future disposal, the associated revenue may not all be recognized by Seadrill.
v3.23.2
Common shares (Tables)
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Schedule of share capital
Share capital as at June 30, 2023 (Successor) and December 31, 2022 (Successor) was as follows:
Issued and fully paid share capital
SharesPar value each$ thousands
As at January 1, 2022 and balance before reorganization and fresh start adjustments100,384,435 0.10 10,038 
Cancellation of Predecessor equity(100,384,435)0.10 (10,038)
Issuance of Successor common stock49,999,998 0.01 500 
As at February 22, 2022 (Predecessor)49,999,998 0.01 500 
As at February 23, 2022, December 31, 2022 and March 31, 2023 (Successor) 49,999,998 0.01 500 
Shares issued to Aquadrill unitholders and equity award holders 29,866,505 0.01 299 
As at June 30, 202379,866,503 0.01 799 
v3.23.2
Accumulated other comprehensive (loss)/income (Tables)
 6 Months Ended
Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of accumulated other comprehensive income
Accumulated other comprehensive loss for the six months ended June 30, 2023 were as follows:
(In $ millions) 
Actuarial gain relating to pensionShare in unrealized loss from associated companiesChange in debt component on Archer bondTotal
As at January 1, 20232 — — 2 
Other comprehensive income— — — — 
As at March 31, 20232 — — 2 
Other comprehensive income— — — — 
As at June 30, 20232 — — 2 
Accumulated other comprehensive income/(loss) for the periods from January 1, 2022 through February 22, 2022 (Predecessor) and February 23, 2022 through March 31, 2022, and June 30, 2022 (Successor) were as follows:
(In $ millions) 
Actuarial (loss)/gain relating to pensionShare in unrealized loss from associated companiesChange in debt component on Archer bondTotal
As at January 1, 2022 (Predecessor) (2)(19)6 (15)
Other comprehensive income from continuing operations1 — — 1 
Other comprehensive loss from discontinued operations— (2)(1)(3)
Recycling of accumulated other comprehensive loss on sale of PES— 21 (5)16 
Balance before reorganization and fresh start adjustments(1)— — (1)
Reset accumulated other comprehensive loss1 — — 1 
As at February 22, 2022 (Predecessor)— — — — 
As at February 23, 2022 (Successor) — — — — 
Other comprehensive income— — — — 
As at March 31, 2022 (Successor)— — — — 
Other comprehensive income3 — — 3 
As at June 30, 2022 (Successor)3 — — 3 
v3.23.2
Related party transactions (Tables)
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Schedule of related party transactions
The below table provides an analysis of related party revenues for periods presented in this report.
SuccessorSuccessorPredecessor
 (In $ millions)
Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Management fees revenues (a)
55 46 112 60 12 
Reimbursable revenue (b)
7 4 14 5 3 
Lease revenue (c)
7 7 14 9 4 
Other (d)
3 — 6 — — 
Total related party operating revenues72 57 146 74 19 
(a) Seadrill has provided management and administrative services to Sonadrill, SeaMex, and PES, and operational and technical support services to SeaMex and Sonadrill. These services were charged to our affiliates on a cost-plus mark-up or dayrate basis. Following the disposal of our remaining 35% equity interest in PES on February 24, 2023, PES and SeaMex are no longer related parties of Seadrill and any revenue earned subsequent to that date has been excluded from the above results.
(b) We recognized reimbursable revenues from Sonadrill for project work related to the Libongos, Quenguela, and West Gemini rigs.
(c) Lease revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill.
(d) On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term.
Related party operating expenses
The below table provides an analysis of related party operating expenses for periods presented in this report.
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
West Hercules lease (e)
— — — — (3)
Total related party operating expenses— — — — (3)
(e) Seadrill incurred operating lease expense related to its lease of the West Hercules following a lease modification in August 2021 which resulted in the lease being reclassified as an operating lease rather than a finance lease. Refer to Note 20 - ''Leases'' for further details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
Related party receivable balances
The below table provides an analysis of related party receivable balances for periods presented in this report.
(In $ millions)As at June 30, 2023As at December 31, 2022
Trading and other balances (f)
8 28 
Allowance for expected credit losses (g)
(1)(1)
Total related party receivables7 27 
Of which:
Amounts due from related parties - current7 27 
(f) Trading and other balances primarily comprise receivables from Sonadrill and, as at December 31, 2022, Gulfdrill, SeaMex and PES for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(g) Allowances recognized for expected credit losses on our related party loan and trade receivables following adoption of accounting standard update 2016-13 - Measurement of Credit Losses on Financial Instruments. Refer to Note 5 - ''Current expected credit losses'' for further information.
The below table provides an analysis of the receivable balance by counterparty:
 (In $ millions)As at June 30, 2023As at December 31, 2022
Sonadrill 8 17 
Gulfdrill— 9 
PES / SeaMex— 2 
Gross amount receivable8 28 
Less: CECL allowance (1)(1)
Receivable net of CECL allowance 7 27 
v3.23.2
Fair value of financial instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial instruments measured at amortized cost The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as at June 30, 2023 and December 31, 2022 are as follows:
As at June 30, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Liabilities
First Lien Senior Secured (Level 3)
192 184 195 184 
Second Lien Senior Secured (Level 3)
121 121 284 284 
Unsecured Convertible note - debt component (Level 3)
48 50 46 50 
Schedule of fair value of financial instruments measured at fair value
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 are as follows: 
As at June 30, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
412 412 480 480 
Restricted cash (Level 1)
127 127 118 118 
Interest rate cap derivative (Level 2)
— — 5 5 
v3.23.2
Assets held for sale and discontinued operations (Tables)
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disclosure of Long-Lived Assets Held-for-sale
Accordingly, as of June 30, 2023, the six units were classified as held for sale in our Consolidated Balance Sheet as summarized below:
(In $ millions)As at June 30, 2023
Tender-Assist Units
West Vencedor23 
T-1545 
T-1617 
Total Tender-Assist Units85 
Gulfdrill rigs
West Tucana42 
West Castor49 
West Telesto44 
Total Gulfdrill rigs135 
Total assets held for sale as at June 30, 2023220 
v3.23.2
Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Schedule Of Major Classes Of Line Items Constituting Profit and Loss Of Discontinued Operations
The table below shows the loss from discontinued operations:
SuccessorSuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
NSNCo————(4)
Jackup Sale— — — — (29)
Total loss from discontinued operations— — — — (33)
Basic LPS: discontinued operations ($)— — — — (0.33)
Diluted LPS: discontinued operations ($)— — — — (0.33)
Schedule Of Net Gain On Disposal The net gain on disposal, which is reported within Other financial items in our income statement, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Gain on sale
Initial purchase price 43 
Lender incentive fee1 
Total consideration44 
Less: Book value of PES investment(31)
Less: Management Incentive Fee intangible(13)
Gain on disposal— 
Schedule of disposals
The table below summarizes the profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by the KSA Business during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022 Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 31 — 44 18 
Total operating revenues— 31 — 44 18 
Operating expenses
Vessel and rig operating expenses— (17)— (24)(10)
Selling, general and administrative expenses— (3)— (4)(1)
Depreciation and amortization— (7)— (10)(4)
Amortization of intangibles— (4)— (5)— 
Costs associated with disposal— — — — — 
Total operating expenses— (31)— (43)(15)
Operating profit— — — 1 3 
Financial and other non-operating items
Interest expense— — — — — 
Reorganization items— — — — (32)
Other financial items— — — — — 
Net profit/(loss) before tax from discontinued operations— — — 1 (29)
Income tax expense— — — (1)— 
Net profit/(loss) after tax from discontinued operations— — — — (29)
The table below summarizes the profit and loss statement for PES during periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by PES during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through June 30, 2022
Period from January 1, 2022 through February 22, 2022
Operating revenues
Contract revenues— 12 
Total operating revenues— 12 
Operating expenses
Operating expenses— (8)
Total operating expenses— (8)
Operating profit— 4 
Financial and other non-operating items
Interest income— — 
Interest expense— (4)
Share in results from associated companies (net of tax)— (1)
Loss on impairment of investments— — 
Loss impairment of convertible bond from related party— — 
Other financial items— (2)
Total financial items— (7)
Net profit/(loss) before tax— (3)
Income tax benefit/(expense)— (1)
Net profit/(loss) after tax— (4)
v3.23.2
Business Combinations (Tables)
 6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The table below summarizes the total consideration transferred at the Closing date:
(In $ millions, except per share data)Aquadrill
Shares
Final Exchange Ratio (4)
As at Acquisition
Aquadrill outstanding shares as of April 3, 202320,000,0001.4128,258,965 
Aquadrill restricted stock units122,1041.41172,527 
Aquadrill phantom award units105,7001.41149,349 
Aquadrill phantom appreciation rights570,0000.70399,576
Total Aquadrill shares converted to Seadrill shares20,797,80428,980,417 
Company Sale Bonus (1)
1,664,743 
Total Seadrill shares eligible for purchase of Aquadrill30,645,160 
Less: Tax withholding in lieu of common shares (2)
(744,150)
Less: Seadrill shares settled in cash (3)
(34,505)
Seadrill shares issued for purchase of Aquadrill29,866,505 
Seadrill share price at April 3, 2023 market close41.62 
Consideration issued in Seadrill shares1,243 
Consideration settled by tax withholding (2)
30 
Consideration settled in cash (3)
1 
Total consideration transferred1,274 
(1) Immediately prior to the Closing Date, the Sale Bonus Award Agreement, dated as of May 24, 2021, by and between Aquadrill and Steven Newman, the Chief Executive Officer and a Director of Aquadrill, was terminated and in connection with such termination at the Effective Time and in accordance with the Merger Agreement, Mr. Newman received 1,013,405 Seadrill common shares and $26 million tax withholding, paid on his behalf, in lieu of Seadrill common shares.
(2) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, the Company elected to pay $30 million of tax withholding. These shares were settled at a per share value agreed upon between the Company and the Aquadrill Board of Directors.
(3) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, certain non-employee board members elected to receive $1 million cash in lieu of Seadrill common shares. These shares were settled at a per share value agreed upon between the Company and the Aquadrill Board of Directors.
(4) Final exchange ratios calculated pursuant to the Merger Agreement.
The table below represents the preliminary purchase price allocation to the identifiable assets acquired and liabilities assumed at the Closing Date:
(In $ millions)As at Acquisition
Assets acquired:
Cash and cash equivalents51 
Restricted cash5 
Accounts receivable60 
Other current assets36 
Total current assets152 
Drilling units1,255 
Deferred tax assets19 
Equipment1 
Other non-current assets5 
Total non-current assets1,280 
Total assets acquired1,432 
Liabilities assumed:
Trade accounts payable11 
Other current liabilities69 
Total current liabilities80 
Other non-current liabilities78 
Total non-current liabilities78 
Total liabilities assumed158 
Net asset acquired1,274 
Post-Merger Operating Results
The following table reflects Aquadrill's operating revenue and profit from continuing operations included in Seadrill's consolidated statement of operations subsequent to the Convenience Date.
(In $ millions)Three and six months ended June 30, 2023
Operating revenue131 
Profit from continuing operations46 
Business Acquisition, Pro Forma Information
The following unaudited pro forma summary presents the results of operations as if the Merger had occurred on February 23, 2022, the date of emergence from Chapter 11 for the Successor company. The pro forma summary uses estimates and assumptions based on information available at the time. We believe the estimates and assumptions are reasonable, however, actual results may have differed significantly from this pro forma financial information. The pro forma information does not purport to be indicative of results of operations that would have occurred had the Merger occurred on the basis assumed above, nor is such information indicative of our expected future results. The pro forma results of operations do not reflect any cost savings or other synergies that might have been achieved from combining the operations or any estimated costs that have not yet been incurred to integrate Aquadrill assets.
SuccessorSuccessor
(In $ millions, except per share data)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022
Operating revenue414 291 758 402 
Profit/(loss) from continuing operations82 (48)121 (67)
Basic EPS: continuing operations ($)1.03 (0.60)1.52 (0.84)
Diluted EPS: continuing operations ($)1.02 (0.60)1.50 (0.84)
The table below summarizes the results of operations related to the tender-assist rigs and Gulfdrill rigs included in the pro forma results of operations:
SuccessorSuccessor
(In $ millions)Three months ended June 30, 2023Three months ended June 30, 2022Six months ended June 30, 2023Period from February 23, 2022 through June 30, 2022
Tender Rigs
Operating revenue6 — 12 — 
Loss from continuing operations(2)(2)(3)(3)
Gulfdrill
Operating revenue7 7 14 10 
Profit from continuing operations6 3 13 4 
v3.23.2
General information (Details)
shares in Thousands, $ in Millions
 4 Months Ended
Apr. 03, 2023
USD ($)
rig
shares
Jun. 30, 2022
Jul. 28, 2023
rig
Jun. 30, 2023
rig
Sep. 01, 2022
rig
Jan. 31, 2022
rig
Related Party Transaction [Line Items]            
Number of offshore drilling units owned       22    
Number of offshore drilling units operated       17    
Number of rigs cold stacked       5    
Number of floating operating rigs       11    
Number of harsh environment operating rigs       2    
Number of jackup operating rigs       3    
Number of tender-assisted rigs       1    
Number of jackup units         7 7
Number of offshore drilling units managed and operated for related parties       7    
Number of drillships       2    
Financial Designation, Predecessor and Successor [Fixed List]   Successor        
Paratus Energy Services            
Related Party Transaction [Line Items]            
Percentage ownership disposed of (in percentage)           65.00%
Subsequent event            
Related Party Transaction [Line Items]            
Number of tender-assist units sold     3      
Aquadrill LLC            
Related Party Transaction [Line Items]            
Number of tender-assisted rigs 3          
Stock issued during period, shares, acquisitions (in shares) | shares 29,900          
Consideration settled by tax withholding | $ $ 30          
Consideration settled in cash | $ $ 1          
Number of drillships 4          
Number of semi-submersible units 1          
Seventh generation drillships            
Related Party Transaction [Line Items]            
Number of floating operating rigs       7    
Sixth generation drillships            
Related Party Transaction [Line Items]            
Number of floating operating rigs       3    
Benign environment semi-submersible            
Related Party Transaction [Line Items]            
Number of floating operating rigs       1    
Benign environment semi-submersible | Aquadrill LLC            
Related Party Transaction [Line Items]            
Number of offshore drilling units owned 1          
Semi-submersible unit            
Related Party Transaction [Line Items]            
Number of harsh environment operating rigs       1    
Jack up rigs            
Related Party Transaction [Line Items]            
Number of harsh environment operating rigs       1    
Gulfdrill            
Related Party Transaction [Line Items]            
Number of rigs under lease       3    
Number of tender-assisted rigs       3    
Number of jackup units       3    
Sonadrill            
Related Party Transaction [Line Items]            
Number of rigs under lease       1    
Number of offshore drilling units managed and operated for related parties       2    
SeaMex Limited            
Related Party Transaction [Line Items]            
Number of offshore drilling units managed and operated for related parties       5    
v3.23.2
Chapter 11 - Narrative (Details) - USD ($)
 2 Months Ended
Feb. 28, 2022
Feb. 10, 2021
Feb. 22, 2022
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Feb. 23, 2022
Jan. 20, 2022
Nov. 02, 2021
Reorganization, Chapter 11 [Line Items]                  
Total debt       $ 355,000,000 $ 518,000,000   $ 951,000,000    
Rights offering percentage   12.50%              
Backstop parties, equity commitment premium percentage   4.25%              
Backstop parties, commitment premium   7.50%              
Backstop parties, commitment premium   $ 20,000,000              
% allocation     100.00%            
Reorganization value, rig asset derecognized     $ 175,000,000            
Reorganization value, financial liability rig asset derecognized     161,000,000            
Reorganization value, cash held as collateral     7,000,000            
Interest expense, not recorded due to reorganization     $ 48,000,000            
Paratus Energy Services                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest (as percent)       35.00%   35.00%   35.00%  
Class 4 credit agreement claimants                  
Reorganization, Chapter 11 [Line Items]                  
% allocation     83.00%            
Rights offering participants                  
Reorganization, Chapter 11 [Line Items]                  
% allocation     12.50%            
Backstop parties                  
Reorganization, Chapter 11 [Line Items]                  
% allocation     4.25%            
Class 9 predecessor shareholders                  
Reorganization, Chapter 11 [Line Items]                  
% allocation     0.25%            
NSNCo | SeaMex Limited                  
Reorganization, Chapter 11 [Line Items]                  
Business acquisition, percentage of voting interests acquired                 100.00%
NSNCo                  
Reorganization, Chapter 11 [Line Items]                  
Noncontrolling interest, ownership percentage by noncontrolling owners           35.00%   35.00%  
NSNCo | NSNCo Noteholders                  
Reorganization, Chapter 11 [Line Items]                  
Noncontrolling interest, ownership percentage by parent               65.00%  
Maximum | Reorganized Seadrill                  
Reorganization, Chapter 11 [Line Items]                  
Noncontrolling interest, ownership percentage by parent   83.00%              
Minimum | Reorganized Seadrill                  
Reorganization, Chapter 11 [Line Items]                  
Noncontrolling interest, ownership percentage by parent   16.75%              
Allowed credit agreement claim                  
Reorganization, Chapter 11 [Line Items]                  
Total debt   $ 683,000,000              
First Lien Senior Secured (Level 3)                  
Reorganization, Chapter 11 [Line Items]                  
Maximum borrowing capacity   300,000,000              
New first lien term loan                  
Reorganization, Chapter 11 [Line Items]                  
Maximum borrowing capacity   175,000,000              
New first lien revolving credit facility                  
Reorganization, Chapter 11 [Line Items]                  
Maximum borrowing capacity   $ 125,000,000              
Hermen convertible bond | Convertible debt                  
Reorganization, Chapter 11 [Line Items]                  
Debt instrument, face amount $ 50,000,000                
Debt conversion, converted instrument, shares issued 52.6316                
Derivative notional amount $ 1,000                
v3.23.2
Chapter 11 - Schedule of Allocation of Shares (Details) - shares
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]            
Number of shares 79,866,503 49,999,998 49,999,998 49,999,998 49,999,998 100,384,435
% allocation         100.00%  
Equity dilution on conversion of convertible bond         100.00%  
Allocation to predecessor senior secured lenders            
Reorganization, Chapter 11 [Line Items]            
Number of shares         41,499,999  
% allocation         83.00%  
Equity dilution on conversion of convertible bond         78.85%  
Allocation to new money lenders - holders of subscription rights            
Reorganization, Chapter 11 [Line Items]            
Number of shares         6,250,001  
% allocation         12.50%  
Equity dilution on conversion of convertible bond         11.87%  
Allocation to new money lenders - backstop parties            
Reorganization, Chapter 11 [Line Items]            
Number of shares         2,125,000  
% allocation         4.25%  
Equity dilution on conversion of convertible bond         4.04%  
Allocation to predecessor shareholders            
Reorganization, Chapter 11 [Line Items]            
Number of shares         124,998  
% allocation         0.25%  
Equity dilution on conversion of convertible bond         0.24%  
Allocation to convertible bondholder            
Reorganization, Chapter 11 [Line Items]            
Number of shares         0  
% allocation         0.00%  
Equity dilution on conversion of convertible bond         5.00%  
v3.23.2
Chapter 11 - Schedule of Liabilities Subject to Compromise (Details) - Reorganization, chapter 11, predecessor, before adjustment
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Senior under-secured external debt $ 5,662
Accounts payable and other liabilities 35
Accrued interest on external debt 34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus 506
Liabilities subject to compromise 6,119
Continuing operations  
Reorganization, Chapter 11 [Line Items]  
Liabilities subject to compromise 6,119
Discontinued operations  
Reorganization, Chapter 11 [Line Items]  
Liabilities subject to compromise 118
Aggregate continuing and discontinued operations  
Reorganization, Chapter 11 [Line Items]  
Liabilities subject to compromise $ 6,237
v3.23.2
Chapter 11- Schedule of Fresh-Start Adjustments (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Jan. 20, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Feb. 23, 2022
Reorganization, Chapter 11 [Line Items]                  
Gain on settlement of liabilities subject to compromise     $ 0   $ 0 $ 0      
Fresh-start valuation adjustments     0   0 0      
Loss on deconsolidation of Paratus Energy Services     0   0 0      
Advisory and professional fees     0   (9) 0      
Gain on write-off of related party payables     0   0 0      
Expense of predecessor Directors & Officers insurance policy     0   0 0      
Remeasurement of terminated lease to allowed claim     0   0 0      
Interest income on surplus cash     0   0 0      
Total reorganization items, net   $ 3,651 0 $ (5) (9) 0      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 $ (152)   67     67 $ 84   $ 64
Fair value of retained 35% interest in Paratus Energy Services Ltd 56                
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal (16)                
Loss on deconsolidation of Paratus Energy Services Ltd $ (112)                
Continuing operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net   3,683 0 (5) (9) 0      
Discontinued operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net   (32) $ 0 0 $ 0 $ 0      
Paratus Energy Services                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest (as percent) 35.00%   35.00%     35.00%   35.00%  
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022     $ 0     $ 0 $ 31    
NSNCo | NSNCo Noteholders                  
Reorganization, Chapter 11 [Line Items]                  
Noncontrolling interest, ownership percentage by parent 65.00%                
Reorganization, chapter 11, predecessor, before adjustment                  
Reorganization, Chapter 11 [Line Items]                  
Gain on settlement of liabilities subject to compromise   3,581   0          
Fresh-start valuation adjustments   242   0          
Loss on deconsolidation of Paratus Energy Services   (112)   0          
Advisory and professional fees   (44)   (5)          
Gain on write-off of related party payables   0   0          
Expense of predecessor Directors & Officers insurance policy   (17)   0          
Remeasurement of terminated lease to allowed claim   0   0          
Interest income on surplus cash   1   $ 0          
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022   $ 81              
v3.23.2
Fresh Start Accounting - Additional Information (Details)
$ in Millions
Feb. 23, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Enterprise value $ 2,095
Minimum  
Reorganization, Chapter 11 [Line Items]  
Enterprise value 1,795
Maximum  
Reorganization, Chapter 11 [Line Items]  
Enterprise value 2,396
Median  
Reorganization, Chapter 11 [Line Items]  
Enterprise value $ 2,095
v3.23.2
Fresh Start Accounting -Reconciliation Of Enterprise Value And Reorganization Value (Details) - USD ($)
$ / shares in Units, $ in Millions
 2 Months Ended 4 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Jun. 30, 2022
Jun. 30, 2023
Dec. 31, 2022
Reorganization, Chapter 11 [Line Items]          
Enterprise value $ 2,095        
Plus: Cash and cash equivalents at emergence 336     $ 412 $ 480
Less: Fair value of long-term debt (951)        
Implied value of Successor equity $ 1,499        
Shares issued upon emergence (in shares) 49,999,998 49,999,998 29,866,505    
Per share value (US$) (in usd per share) $ 29.98        
Plus: Non-interest-bearing current liabilities $ 350     10 22
Plus: Non-interest-bearing non-current liabilities 179     $ 345 $ 496
Total value of Successor Entity's assets on Emergence 2,979        
Aggregate continuing and discontinued operations          
Reorganization, Chapter 11 [Line Items]          
Plus: Cash and cash equivalents at emergence $ 355        
v3.23.2
Fresh-Start Accounting- Schedule of Adjustments in Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Jun. 30, 2022
Mar. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 20, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]                  
Cash and cash equivalents $ 412,000   $ 480,000     $ 336,000      
Restricted cash 44,000   44,000     85,000      
Accounts receivable, net 217,000   137,000     169,000      
Amounts due from related parties, net 7,000   27,000     42,000      
Assets held for sale -current 220,000   0     74,000      
Other current assets 201,000   169,000     197,000      
Total current assets 1,101,000   857,000     903,000      
Investments in associated companies 67,000   84,000     64,000   $ (152,000)  
Drilling units           1,575,000      
Restricted cash 83,000   74,000     69,000      
Deferred tax assets 28,000   15,000     9,000      
Equipment           9,000      
Asset held for sale - non-current           311,000      
Other non-current assets 71,000   93,000     39,000      
Total non-current assets 2,936,000   1,944,000     2,076,000      
Total assets 4,037,000   2,801,000     2,979,000      
Trade accounts payable           53,000      
Liabilities associated with asset held for sale - current           64,000      
Other current liabilities 295,000   306,000     233,000      
Total current liabilities 354,000   404,000     350,000      
Total debt 355,000   518,000     951,000      
Deferred tax liabilities 8,000   9,000     6,000      
Liabilities associated with asset held for sale - non-current           2,000      
Other non-current liabilities 251,000   190,000     171,000      
Total non-current liabilities 604,000   695,000     1,130,000      
Predecessor common shares of par value 799 $ 500 500     500 $ 500   $ 10,038
Additional paid-in capital 2,738,000   1,499,000     1,499,000      
Accumulated other comprehensive loss 2,000   2,000            
Retained earnings 338,000   201,000            
Total equity 3,079,000 $ 1,745,000 1,702,000 $ 1,470,000 $ 1,503,000 1,499,000 1,499,000   $ (3,716,000)
Total liabilities and equity 4,037,000   2,801,000     2,979,000      
Drilling units $ 2,678,000   $ 1,668,000            
Fair value                  
Reorganization, Chapter 11 [Line Items]                  
Drilling units           1,882,000      
Fair value | Continuing operations                  
Reorganization, Chapter 11 [Line Items]                  
Drilling units           1,575,000      
Fair value | Discontinued operations                  
Reorganization, Chapter 11 [Line Items]                  
Drilling units           307,000      
Reorganization, chapter 11, predecessor, before adjustment                  
Reorganization, Chapter 11 [Line Items]                  
Cash and cash equivalents             262,000    
Restricted cash             135,000    
Accounts receivable, net             169,000    
Amounts due from related parties, net             42,000    
Assets held for sale -current             63,000    
Other current assets             194,000    
Total current assets             865,000    
Investments in associated companies             81,000    
Drilling units             1,434,000    
Restricted cash             69,000    
Deferred tax assets             8,000    
Equipment             11,000    
Asset held for sale - non-current             345,000    
Other non-current assets             13,000    
Total non-current assets             1,961,000    
Total assets             2,826,000    
Trade accounts payable             53,000    
Liabilities associated with asset held for sale - current             64,000    
Other current liabilities             164,000    
Total current liabilities             281,000    
Liabilities subject to compromise             6,119,000    
Liabilities subject to compromise associated with asset held for sale             118,000    
Deferred tax liabilities             7,000    
Liabilities associated with asset held for sale - non-current             2,000    
Other non-current liabilities             108,000    
Total non-current liabilities             117,000    
Predecessor common shares of par value             10,000    
Additional paid-in capital             3,504,000    
Accumulated other comprehensive loss             (1,000)    
Retained earnings             (7,322,000)    
Total equity             (3,809,000)    
Total liabilities and equity             2,826,000    
Reorganization, chapter 11, predecessor, before adjustment | Continuing operations                  
Reorganization, Chapter 11 [Line Items]                  
Liabilities subject to compromise             6,119,000    
Reorganization, chapter 11, predecessor, before adjustment | Discontinued operations                  
Reorganization, Chapter 11 [Line Items]                  
Liabilities subject to compromise             118,000    
Reorganization Adjustments                  
Reorganization, Chapter 11 [Line Items]                  
Cash and cash equivalents             74,000    
Restricted cash             (50,000)    
Other current assets             (17,000)    
Total current assets             7,000    
Drilling units             (175,000)    
Total non-current assets             (175,000)    
Total assets             (168,000)    
Other current liabilities             52,000    
Total current liabilities             52,000    
Liabilities subject to compromise             (6,119,000)    
Liabilities subject to compromise associated with asset held for sale             (118,000)    
Total debt             951,000    
Total non-current liabilities             951,000    
Predecessor common shares of par value             (10,000)    
Additional paid-in capital           1,499,000 (3,504,000)    
Accumulated other comprehensive loss             1,000    
Retained earnings             7,080,000    
Total equity           $ 1,499,000 5,066,000    
Total liabilities and equity             (168,000)    
Reorganization, chapter 11, fresh-start adjustment                  
Reorganization, Chapter 11 [Line Items]                  
Assets held for sale -current             11,000    
Other current assets             20,000    
Total current assets             31,000    
Investments in associated companies             (17,000)    
Drilling units             316,000    
Deferred tax assets             1,000    
Equipment             (2,000)    
Asset held for sale - non-current             (34,000)    
Other non-current assets             26,000    
Total non-current assets             290,000    
Total assets             321,000    
Other current liabilities             17,000    
Total current liabilities             17,000    
Deferred tax liabilities             (1,000)    
Other non-current liabilities             63,000    
Total non-current liabilities             62,000    
Retained earnings             242,000    
Total equity             242,000    
Total liabilities and equity             $ 321,000    
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
 2 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Jun. 30, 2022
Jun. 30, 2023
Reorganization, Chapter 11 [Line Items]        
Proceeds from debt   $ 175 $ 0 $ 0
Reorganization Adjustments        
Reorganization, Chapter 11 [Line Items]        
Settlement of the Prepetition Credit Agreement $ (683)      
Payment of the AOD cash out option (116)      
Payment of success-based advisor fees (28)      
Payment of the arrangement & financing fee for the Term Loan Facility (30)      
Transfer of cash to restricted cash for the professional fee escrow account funding (2)      
Change in cash and cash equivalents 74      
Reorganization Adjustments | Term loan facility        
Reorganization, Chapter 11 [Line Items]        
Proceeds from debt 175      
Payment of the arrangement & financing fee for the Term Loan Facility (5)      
Reorganization Adjustments | Convertible Bonds        
Reorganization, Chapter 11 [Line Items]        
Proceeds from debt 50      
Reorganization Adjustments | New Second Lien Facility        
Reorganization, Chapter 11 [Line Items]        
Proceeds from debt $ 683      
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Restricted Cash (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims $ (45)
Return of cash collateral to SFL for the amended West Linus lease agreement (7)
Transfer of cash to restricted cash for the professional fee escrow account funding 2
Change in restricted cash $ (50)
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Other Current Assets (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Expense of Predecessor Directors & Officers insurance policy $ 17
Expense of the Commitment Premium and other capitalized debt issuance costs 24
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease 24
Change in other current assets (17)
Lease modification expense $ 175
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Other Current Liabilities (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds $ 27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease 25
Change in other current liabilities $ 52
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Liabilities Subject to Compromise (Details) - USD ($)
$ in Thousands
 2 Months Ended 3 Months Ended 4 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Reorganization, Chapter 11 [Line Items]          
Accrued interest on external debt     $ 2,000   $ 4,000
Amounts due to SFL Corporation under leases for the West Taurus and West Linus     7,000   $ 9,000
Issuance of common stock   $ (1,495,000) $ (1,244,000) $ (299)  
Reorganization, chapter 11, predecessor, before adjustment          
Reorganization, Chapter 11 [Line Items]          
Senior under-secured external debt $ 5,662,000 5,662,000      
Accounts payable and other liabilities 35,000 35,000      
Accrued interest on external debt 34,000 34,000      
Amounts due to SFL Corporation under leases for the West Taurus and West Linus 506,000 506,000      
Liabilities subject to compromise 6,119,000 6,119,000      
Reorganization, chapter 11, predecessor, before adjustment | Aggregate continuing and discontinued operations          
Reorganization, Chapter 11 [Line Items]          
Liabilities subject to compromise 6,237,000 6,237,000      
Reorganization Adjustments          
Reorganization, Chapter 11 [Line Items]          
Liabilities subject to compromise (6,119,000) $ (6,119,000)      
Payment of the AOD cash out option (116,000)        
Premium associated with the Term Loan Facility (9,000)        
Debt issuance costs (30,000)        
Payment of the rig sale proceeds (45,000)        
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid (27,000)        
Derecognition of West Linus rig and return of cash collateral (182,000)        
Reversal of the release of certain general unsecured operating accruals (35,000)        
Pre-tax gain on settlement of liabilities subject to compromise 3,581,000        
Reorganization Adjustments | Equity commitment premium          
Reorganization, Chapter 11 [Line Items]          
Issuance of common stock (64,000)        
Reorganization Adjustments | Holders of Prepetition Credit Agreement claims          
Reorganization, Chapter 11 [Line Items]          
Issuance of common stock (1,244,000)        
Reorganization Adjustments | Rights offering participants          
Reorganization, Chapter 11 [Line Items]          
Issuance of common stock (187,000)        
Reorganization Adjustments | New Second Lien Facility          
Reorganization, Chapter 11 [Line Items]          
Issuance of the Second Lien Facility $ (717,000)        
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Long-term Debt (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Record the premium on the Term Loan Facility and Second Lien Facility $ 43
Change in long-term debt 951
Term loan facility  
Reorganization, Chapter 11 [Line Items]  
Issuance of long-term debt 175
New Second Lien Facility  
Reorganization, Chapter 11 [Line Items]  
Issuance of long-term debt 683
Convertible Bonds  
Reorganization, Chapter 11 [Line Items]  
Issuance of long-term debt $ 50
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Retained Loss (Details) - USD ($)
$ in Thousands
 2 Months Ended 3 Months Ended 4 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Reorganization, Chapter 11 [Line Items]        
Cancellation of Predecessor equity   $ 0    
Issuance of common stock   (1,495,000) $ (1,244,000) $ (299)
Retained profit        
Reorganization, Chapter 11 [Line Items]        
Cancellation of Predecessor equity $ 3,513,000 3,513,000    
Issuance of common stock (4,000) 4,000    
Reorganization Adjustments        
Reorganization, Chapter 11 [Line Items]        
Pre-tax gain on settlement of liabilities subject to compromise 3,581,000      
Reversal of the release of certain general unsecured operating accruals 35,000      
Payment of success-based advisor fees (28,000)      
Expense of Predecessor Directors & Officers insurance policy (17,000)      
Impact to net income 3,571,000 $ 3,571,000    
Net impact to retained loss $ 7,080,000      
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Additional Paid-In Capital (Details) - USD ($)
$ in Thousands
 2 Months Ended 3 Months Ended 4 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]                  
Issuance of Successor common stock   $ 1,495,000 $ 1,244,000 $ 299          
Successor additional paid-in capital $ 1,499,000 1,499,000 3,079,000 1,470,000 $ 1,745,000 $ 1,702,000 $ 1,503,000 $ 1,499,000 $ (3,716,000)
Additional paid-in capital                  
Reorganization, Chapter 11 [Line Items]                  
Issuance of Successor common stock   1,499,000 1,243,000            
Successor additional paid-in capital 1,499,000 1,499,000 $ 2,738,000 $ 1,499,000 $ 1,499,000 $ 1,499,000 $ 1,499,000 1,499,000 $ 0
Reorganization Adjustments                  
Reorganization, Chapter 11 [Line Items]                  
Successor additional paid-in capital 5,066,000 $ 5,066,000           $ 1,499,000  
Reorganization Adjustments | Holders of Prepetition Credit Agreement claims                  
Reorganization, Chapter 11 [Line Items]                  
Issuance of Successor common stock 1,244,000                
Reorganization Adjustments | Additional paid-in capital                  
Reorganization, Chapter 11 [Line Items]                  
Fair value of the conversion option on the Convertible Bond 39,000                
Reorganization Adjustments | Additional paid-in capital | Holders of Prepetition Credit Agreement claims                  
Reorganization, Chapter 11 [Line Items]                  
Issuance of Successor common stock 1,456,000                
Reorganization Adjustments | Additional paid-in capital | Predecessor Equity Holders                  
Reorganization, Chapter 11 [Line Items]                  
Issuance of Successor common stock $ 4,000                
v3.23.2
Fresh Start Accounting - Reorganization Adjustments, Fresh Start adjustments (Details) - Reorganization, chapter 11, fresh-start adjustment
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Record fair value adjustment for favorable drilling and management service contracts $ 68
Write-off of current portion of deferred mobilization costs held at amortized cost (15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus (22)
Change in other current assets 31
Total Fresh start adjustments 279
Deferred tax asset, adjustment 1
Record fair value adjustment for favorable drilling and management service contracts 42
Write-off of non-current portion of historical favorable contracts held at amortized cost (9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost 4
Change in other non-current assets 29
Record fair value adjustment for unfavorable drilling contracts 18
Write-off of current portion of historical unfavorable contracts held at amortized cost (1)
Other liabilities 17
Decrease deferred tax liabilities (1)
Record fair value adjustment for unfavorable drilling contracts 67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost (4)
Change in other non-current liabilities 63
Total Fresh start adjustments 242
Continuing operations  
Reorganization, Chapter 11 [Line Items]  
Change in other current assets 20
Total Fresh start adjustments 316
Change in other non-current assets 26
Total Fresh start adjustments 266
Discontinued operations  
Reorganization, Chapter 11 [Line Items]  
Change in other current assets 11
Total Fresh start adjustments (37)
Change in other non-current assets 3
Total Fresh start adjustments (24)
NSNCo  
Reorganization, Chapter 11 [Line Items]  
Fair value adjustment, investments 14
Sonadrill  
Reorganization, Chapter 11 [Line Items]  
Fair value adjustment, investments $ 3
v3.23.2
Current Expected Credit Losses (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Related party receivable current  
Accounts Receivable, Noncurrent, Past Due [Line Items]  
Accounts receivable, allowance for credit loss $ 1
v3.23.2
Segment Reporting - Narrative (Details)
 6 Months Ended
Jun. 30, 2023
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.23.2
Segment Information - Geographic (Details)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
USD ($)
Jun. 30, 2023
USD ($)
rig
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
rig
Dec. 31, 2022
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues $ 169 $ 414 $ 253 $ 346 $ 680  
Drilling units   $ 2,678     $ 2,678 $ 1,668
Number of jack-up rigs leased to joint ventures | rig   3     3  
United States            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues 20 $ 133 43 56 $ 190  
Drilling units   934     934 275
Brazil            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues 19 85 25 41 167  
Drilling units   715     715 714
Angola            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues 43 65 72 97 128  
Norway            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues 78 58 72 106 110  
Drilling units   417     417 312
Canada            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues 0 0 29 29 0  
Qatar            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Drilling units   0     0 144
Other            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Total operating revenues $ 9 73 $ 12 $ 17 85  
Drilling units   $ 612     $ 612 $ 223
v3.23.2
Segment information - Major Customers (Details) - Contract revenues - Customer concentration risk
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
BP          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 0.00% 16.00% 0.00% 0.00% 10.00%
Sonadrill          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 9.00% 16.00% 18.00% 17.00% 19.00%
Petrobras          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 0.00% 15.00% 0.00% 0.00% 18.00%
Vår Energi          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 11.00% 9.00% 12.00% 13.00% 10.00%
LLOG          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 7.00% 8.00% 8.00% 8.00% 10.00%
Equinor          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 10.00% 5.00% 12.00% 9.00% 7.00%
ConocoPhillips          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 13.00% 5.00% 16.00% 16.00% 6.00%
Sonangol          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 11.00% 0.00% 2.00% 3.00% 0.00%
Lundin          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 12.00% 0.00% 0.00% 1.00% 0.00%
Other          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 27.00% 26.00% 32.00% 33.00% 20.00%
v3.23.2
Revenue from Contracts with Customers - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Revenue from Contract with Customer [Abstract]      
Accounts receivable, net $ 217 $ 137 $ 169
Current contract liabilities (classified within other current liabilities) (30) (19)  
Non-current contract liabilities (classified within other non-current liabilities) $ (40) $ (42)  
v3.23.2
Revenue from Contracts with Customers - Significant Changes in Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended
Mar. 31, 2022
Feb. 22, 2022
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Apr. 03, 2023
Revenue from Contract with Customer [Abstract]            
Contract liabilities, beginning balance $ (19) $ (35) $ (73) $ (61) $ (22)  
Amortization of revenue that was included in the beginning contract liability balance   16 6 5 14  
Cash received, excluding amounts recognized as revenue (3)   (2) (17) 22  
Aquadrill acquisition           $ (1)
Contract liabilities, ending balance $ (22) $ (19) $ (70) $ (73) $ (30)  
v3.23.2
Other revenues (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Jul. 01, 2022
Variable Interest Entity [Line Items]            
Leasing revenues (a) $ 4 $ 7 $ 7 $ 9 $ 14  
Other (b) 1 3 0 0 6  
Sonadrill            
Variable Interest Entity [Line Items]            
Equity method investment, ownership increase           $ 25
Other revenues            
Variable Interest Entity [Line Items]            
Total other revenues [1] $ 5 $ 10 $ 7 $ 9 $ 20  
[1] Includes revenue received from related parties of $72 million, $146 million, $57 million, $74 million and $19 million for the three and six months ended June 30, 2023, the three months ended June 30, 2022, the period from February 23, 2022 through June 30, 2022 and period from January 1, 2022 through February 22, 2022 respectively, and costs paid to related parties of $3 million for the period from January 1, 2022 through February 22, 2022. Refer to Note 24 - Related party transactions for further details.
v3.23.2
Other operating items (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Other Income and Expenses [Abstract]          
Gain on disposals $ 2 $ 3 $ 0 $ 0 $ 7
Total other operating items $ 2 $ 3 $ 0 $ 0 $ 7
v3.23.2
Interest expense - Schedule of Interest expense (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Interest Expense [Abstract]          
Cash interest on debt facilities $ 0 $ (12) $ (30) $ (41) $ (27)
Interest on SFL leases (7) 0 0 0 0
Fees and other 0 (1) 0 1 (2)
Interest expense $ (7) $ (13) $ (30) $ (40) $ (29)
v3.23.2
Interest expense - Interest on Debt Facilities (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Debt Instrument [Line Items]          
Total debt principal $ 0 $ (12) $ (30) $ (41) $ (27)
First-lien senior secured          
Debt Instrument [Line Items]          
Total debt principal 0 (5) (3) (5) (10)
Second lien senior secured          
Debt Instrument [Line Items]          
Total debt principal 0 (6) (26) (35) (15)
Unsecured convertible bond          
Debt Instrument [Line Items]          
Total debt principal $ 0 $ (1) $ (1) $ (1) $ (2)
v3.23.2
Taxation (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Income Tax Contingency [Line Items]          
Income tax expense $ 2 $ 13 $ 8 $ 8 $ 14
Ordinary tax charge changes   5      
Uncertain tax positions   2      
Deferred tax credits   $ 6      
Effective tax rate   12.10%   28.60%  
Secretariat of the Federal Revenue Bureau of Brazil          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         124
Norwegian Tax Administration          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         20
Nigerian Tax Authority          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         171
Kuwaiti Tax Authority          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         12
Mexican Tax Authority          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         82
Ghana Tax Authority          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss         $ 18
v3.23.2
Earnings/(Loss) per share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Earnings Per Share [Abstract]          
Profit (loss) from continuing operations $ 3,739 $ 94 $ (36) $ (32) $ 137
Gain on disposal (33) 0 0 0 0
Profit (loss) available to stockholders 3,706 94 (36) (32) 137
Effect of dilution (interest on convertible bond) 0 2 0 0 3
Diluted profit available to stockholders $ 3,706 $ 96 $ (36) $ (32) $ 140
Basic earnings per share:          
Weighted average number of shares (in shares) 100 80 50 50 65
Diluted earnings per share:          
Effect on dilution (in shares) 0 3 0 0 3
Weighted average number of common shares outstanding adjusted for the effects of dilution (in shares) 100 83 50 50 68
Basic (loss)/earnings per share from continuing operations (in USD per share) $ 37.25 $ 1.18 $ (0.72) $ (0.64) $ 2.11
Diluted (loss)/earnings per share from continuing operations (in USD per share) 37.25 1.16 (0.72) (0.64) 2.07
Basic (loss)/earnings per share (in USD per share) 36.92 1.18 (0.72) (0.64) 2.11
Diluted (loss)/earnings per share (in USD per share) $ 36.92 $ 1.16 $ (0.72) $ (0.64) $ 2.07
v3.23.2
Restricted cash (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Restricted Cash and Cash Equivalents Items [Line Items]      
Current restricted cash $ 44 $ 44 $ 85
Non-current restricted cash 83 74 $ 69
Total restricted cash 127 118  
Demand deposit pledged as collateral for tax related guarantee      
Restricted Cash and Cash Equivalents Items [Line Items]      
Total restricted cash 83 74  
Cash held in escrow      
Restricted Cash and Cash Equivalents Items [Line Items]      
Total restricted cash 23 23  
Accounts pledged as collateral for performance bonds and similar guarantees      
Restricted Cash and Cash Equivalents Items [Line Items]      
Total restricted cash 11 10  
Other      
Restricted Cash and Cash Equivalents Items [Line Items]      
Total restricted cash $ 10 $ 11  
v3.23.2
Other Assets - Other Asset Balances (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Other Assets [Abstract]    
Deferred contract costs $ 105 $ 111
Taxes receivable 58 42
Prepaid expenses 46 37
Favorable drilling and management services contracts 19 42
Reimbursable amounts due from customers 8 8
Right of use asset 7 9
Derivative asset - interest rate cap   5
Other 29 8
Total other assets $ 272 $ 262
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent
v3.23.2
Other Assets - Balance Sheet Presentation (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Other Assets [Abstract]      
Other current assets $ 201 $ 169 $ 197
Other non-current assets 71 93 $ 39
Total other assets $ 272 $ 262  
v3.23.2
Other Assets - Roll forward (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Mar. 31, 2022
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Other Assets [Roll Forward]                
Beginning balance, Gross carrying amount $ 96 $ 90 $ 83 $ 96 $ 96 $ 96 $ 96 $ 266
Beginning balance, Accumulated amortization (5) (71) (63) (21) (54) 0 0 (257)
Beginning balance, Net carrying amount 91 19 20 75 42 96 96 9
PES Disposal     (13)          
Aquadrill acquisition   7            
Ending balance, Gross carrying amount 96 90 83 96 96 96 96 266
Ending balance, Accumulated amortization (5) (71) (63) (21) (54) 0 0 (257)
Ending balance, Net carrying amount 91 19 20 75 $ 42 $ 96 96 $ 9
Reorganization, chapter 11, fresh-start adjustment                
Other Assets [Roll Forward]                
Beginning balance, Gross carrying amount             (170)  
Beginning balance, Accumulated amortization             257  
Beginning balance, Net carrying amount             87  
Ending balance, Gross carrying amount             (170)  
Ending balance, Accumulated amortization             257  
Ending balance, Net carrying amount             87  
Reorganization, chapter 11, predecessor, before adjustment                
Other Assets [Roll Forward]                
Beginning balance, Gross carrying amount             266  
Beginning balance, Accumulated amortization             (257)  
Beginning balance, Net carrying amount             9  
Ending balance, Gross carrying amount             266  
Ending balance, Accumulated amortization             (257)  
Ending balance, Net carrying amount             $ 9  
Other Assets                
Other Assets [Roll Forward]                
Amortization $ (5) $ (8) $ (9) $ (16)        
v3.23.2
Other Assets - Narrative (Details)
 6 Months Ended
Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Weighted average remaining amortization period for the favorable contracts 5 months
v3.23.2
Investment in associated companies (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Jan. 20, 2022
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies $ 67 $ 84 $ 64 $ (152)
Sonadrill        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies 59 49    
Gulfdrill        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies 8 4    
Paratus Energy Services        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies $ 0 $ 31    
v3.23.2
Investment in associated companies - Narrative (Details)
$ in Millions
Jun. 30, 2023
rig
Jun. 26, 2023
rig
Feb. 24, 2023
USD ($)
Jul. 01, 2022
rig
Sep. 30, 2022
Jan. 20, 2022
Schedule of Equity Method Investments [Line Items]            
Number of drillships 2          
Number of jack-up rigs leased to joint ventures 3          
Number of benign environment jack-up rigs 3 3   3    
Gulfdrill            
Schedule of Equity Method Investments [Line Items]            
Noncontrolling interest, ownership percentage by noncontrolling owners 50.00%          
Sonadrill            
Schedule of Equity Method Investments [Line Items]            
Number of drillships leased 3          
Sonadrill            
Schedule of Equity Method Investments [Line Items]            
Number of drillships 3          
Ownership interest (as percent) 50.00%          
Number of drillships managed 3          
Sonadrill | Sonangol E P            
Schedule of Equity Method Investments [Line Items]            
Number of drillships 2          
Ownership interest (as percent) 50.00%          
Paratus Energy Services            
Schedule of Equity Method Investments [Line Items]            
Ownership interest (as percent) 35.00%       35.00% 35.00%
Consideration transferred | $     $ 44      
Gulfdrill            
Schedule of Equity Method Investments [Line Items]            
Ownership interest (as percent) 50.00%          
Number Of Premium Jack Up Rigs Operated 5          
Number of jack-up rigs leased to joint ventures 3          
Gulfdrill | Third Party            
Schedule of Equity Method Investments [Line Items]            
Lessee, Operating Lease, Number Of Leased Rigs 2          
v3.23.2
Drilling units (Details)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Jun. 30, 2023
USD ($)
rig
Jun. 26, 2023
rig
Jul. 01, 2022
USD ($)
rig
Feb. 23, 2022
USD ($)
Mar. 31, 2022
USD ($)
Feb. 22, 2022
USD ($)
Jun. 30, 2023
USD ($)
rig
Mar. 31, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
rig
May 19, 2023
rig
Property, Plant and Equipment [Line Items]                        
Aquadrill acquisition             $ 1,255          
Depreciation           $ (17)       $ (52) $ (73)  
Classified as held for sale, cost             276          
Classified as held for sale, accumulated depreciation             56          
Classified as held for sale, net book value             $ (220)          
Number of tender rigs acquired through acquisition | rig 3           3       3 3
Number of benign environment jack-up rigs | rig 3 3 3                  
Drilling units                        
Property, Plant and Equipment [Line Items]                        
Opening balance, cost     $ 1,627     2,241 $ 1,781 $ 1,761 $ 1,591   $ 1,761  
Opening balance, accumulated depreciation     (40)     (810) (123) (93) (12)   (93)  
Opening balance, net book value     $ 1,587     1,431 1,658 1,668 1,579   1,668  
Additions         $ 16 20   21 60      
Additions             37          
Depreciation         (12) (17) (52) (31) (28)      
Disposals, cost           (23)   (1) (24)      
Disposals, accumulated depreciation           23   1 0      
Disposals, net book value           0   0 (24)      
Derecognitions, cost       $ (211)                
Derecognitions, accumulated depreciation       36                
Derecognitions net       175                
Closing balance, cost $ 2,797     1,575 1,591   2,797 1,781 1,627 1,627 2,797  
Closing balance, accumulated depreciation (119)     0 (12)   (119) (123) (40) (40) (119)  
Closing balance, net book value $ 2,678     1,575 1,579   $ 2,678 $ 1,658 $ 1,587 1,587 $ 2,678  
Drilling units | Reorganization, chapter 11, predecessor, before adjustment                        
Property, Plant and Equipment [Line Items]                        
Opening balance, cost       2,238 2,238         2,238    
Opening balance, accumulated depreciation       (804) (804)         (804)    
Opening balance, net book value       1,434 1,434         1,434    
Closing balance, cost           2,238            
Closing balance, accumulated depreciation           (804)            
Closing balance, net book value           1,434            
Drilling units | Reorganization, chapter 11, fresh-start adjustment                        
Property, Plant and Equipment [Line Items]                        
Opening balance, cost       452 452         452    
Opening balance, accumulated depreciation       (768) (768)         (768)    
Opening balance, net book value       $ (316) $ (316)         $ (316)    
Closing balance, cost           452            
Closing balance, accumulated depreciation           (768)            
Closing balance, net book value           $ (316)            
v3.23.2
Equipment (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Mar. 31, 2022
Feb. 22, 2022
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward]                    
Depreciation   $ (17)       $ (52) $ (73)      
Equipment                    
Movement in Property, Plant and Equipment [Roll Forward]                    
Opening balance, cost   39 $ 13 $ 13 $ 9   13      
Additions     1   1          
Closing balance, cost $ 9   14 13 10 10 14      
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward]                    
Opening balance, accumulated depreciation   (28) (4) (3) 0   (3)      
Depreciation     (1) (1) (1)          
Closing balance, accumulated depreciation 0   (5) (4) (1) (1) (5)      
Net book value 9   $ 9 $ 9 $ 9 9 $ 9 $ 10 $ 9 $ 11
Equipment | Reorganization Adjustments                    
Movement in Property, Plant and Equipment [Roll Forward]                    
Opening balance, cost (30)         (30)        
Closing balance, cost   (30)                
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward]                    
Opening balance, accumulated depreciation $ 28         $ 28        
Closing balance, accumulated depreciation   28                
Net book value   $ (2)                
v3.23.2
Equipment - Narrative (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Property, Plant and Equipment [Line Items]          
Reorganization items, net paid $ (3,651) $ 0 $ 5 $ 9 $ 0
Reorganization, chapter 11, fresh-start adjustment | Equipment          
Property, Plant and Equipment [Line Items]          
Reorganization items, net paid         $ (2)
v3.23.2
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Mar. 31, 2023
Feb. 28, 2023
Dec. 31, 2022
Nov. 30, 2022
Oct. 31, 2022
Feb. 23, 2022
Debt Instrument [Line Items]              
Total principal debt $ 340     $ 496      
Total debt 355     518     $ 951
Debt due within one year 10     22     350
Long-term debt 345     496     179
Secured debt:              
Debt Instrument [Line Items]              
Total principal debt 290     446      
Unsecured bond:              
Debt Instrument [Line Items]              
Total principal debt 50     50      
Term loan facility | Secured debt:              
Debt Instrument [Line Items]              
Total principal debt 175     175      
Exit fee 9     9      
Second lien facility | Secured debt:              
Debt Instrument [Line Items]              
Total principal debt 115     271      
Exit fee 6 $ 2 $ 6 13 $ 13 $ 10  
Total debt             $ 683
Unsecured senior convertible bond | Unsecured bond:              
Debt Instrument [Line Items]              
Total principal debt $ 50     $ 50      
v3.23.2
Debt - Narrative (Details) - USD ($)
 1 Months Ended 4 Months Ended
Aug. 08, 2023
Jul. 27, 2023
Feb. 28, 2022
Feb. 23, 2022
Mar. 31, 2023
Feb. 28, 2023
Nov. 30, 2022
Oct. 31, 2022
Jun. 30, 2022
Jun. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]                      
Total debt       $ 951,000,000           $ 355,000,000 $ 518,000,000
Total principal debt                   340,000,000 496,000,000
Super senior secured credit facility                      
Debt Instrument [Line Items]                      
Debt instrument, debt default, percentage       3.00%              
Make-whole premium payable period       3 years              
Exit fee                   9,000,000  
Super senior secured credit facility | Secured Overnight Financing Rate (SOFR)                      
Debt Instrument [Line Items]                      
Basis spread on variable rate (as a percent)       7.00%              
Second lien facility | Subsequent event                      
Debt Instrument [Line Items]                      
Payment for debt extinguishment or debt prepayment cost $ 123,000,000                    
First lien facility | Subsequent event                      
Debt Instrument [Line Items]                      
Payment for debt extinguishment or debt prepayment cost 187,000,000                    
Payment for debt extinguishment, make-whole payment $ 10,000,000                    
Line of Credit | Super senior secured credit facility | Secured debt:                      
Debt Instrument [Line Items]                      
Total debt       $ 175,000,000              
Line of Credit | Super senior secured credit facility | Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Total debt       125,000,000              
Line of credit facility, unused capacity, commitment fee percentage                 2.80%    
Unsecured bond: | Unsecured senior convertible bond                      
Debt Instrument [Line Items]                      
Total debt       $ 50,000,000              
Basis spread on variable rate (as a percent)       6.00%              
Unsecured bond: | Unsecured senior convertible bond | Three month US LIBOR                      
Debt Instrument [Line Items]                      
Long-term debt, floating rate, duration                 3 months    
Secured debt:                      
Debt Instrument [Line Items]                      
Total principal debt                   290,000,000 446,000,000
Secured debt: | Super senior secured credit facility                      
Debt Instrument [Line Items]                      
Maximum borrowing capacity       $ 300,000,000              
Secured debt: | Pari Passu Facility                      
Debt Instrument [Line Items]                      
Total principal debt       50,000,000              
Secured debt: | Second lien facility                      
Debt Instrument [Line Items]                      
Total debt       $ 683,000,000              
Basis spread on variable rate (as a percent)       12.50%              
Total principal debt                   115,000,000 271,000,000
Debt instrument, debt default, percentage       5.00%              
Exit fee         $ 2,000,000 $ 6,000,000 $ 13,000,000 $ 10,000,000   $ 6,000,000 $ 13,000,000
Payment for debt extinguishment or debt prepayment cost         $ 40,000,000 $ 110,000,000 $ 250,000,000 $ 192,000,000      
Secured debt: | Second lien facility | Subsequent event                      
Debt Instrument [Line Items]                      
Basis spread on variable rate (as a percent) 8.375%                    
Debt instrument, face amount $ 75,000,000                    
Secured debt: | Second lien facility | Subsequent event | Seadrill Finance                      
Debt Instrument [Line Items]                      
Basis spread on variable rate (as a percent)   8.375%                  
Debt instrument, face amount   $ 500,000,000                  
Secured debt: | Second lien facility | Cash                      
Debt Instrument [Line Items]                      
Basis spread on variable rate (as a percent)       5.00%              
Secured debt: | Second lien facility | Pay-If-You-Can                      
Debt Instrument [Line Items]                      
Basis spread on variable rate (as a percent)       7.50%              
Convertible debt | Hermen convertible bond                      
Debt Instrument [Line Items]                      
Debt conversion, converted instrument, shares issued     52.6316                
Derivative notional amount     $ 1,000                
Debt instrument, face amount     $ 50,000,000                
v3.23.2
Debt - Debt Maturity (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Debt Instrument [Line Items]  
2023 $ 4
2024 10
2025 10
2026 194
2027 87
2028 50
Total debt principal and exit fee payments 355
Term loan facility  
Debt Instrument [Line Items]  
2023 0
2024 0
2025 0
2026 184
2027 0
2028 0
Total debt principal and exit fee payments 184
Second lien facility  
Debt Instrument [Line Items]  
2023 4
2024 10
2025 10
2026 10
2027 87
2028 0
Total debt principal and exit fee payments 121
Convertible Note  
Debt Instrument [Line Items]  
2023 0
2024 0
2025 0
2026 0
2027 0
2028 50
Total debt principal and exit fee payments $ 50
v3.23.2
Other liabilities - Liability Balances (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Jun. 30, 2022
Mar. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Other Liabilities [Abstract]                
Uncertain tax provisions $ 169   $ 85          
Unfavorable drilling contracts 89   70          
Accrued expenses 80   124          
Contract liabilities 70 $ 73 61 $ 30 $ 22 $ 19 $ 19 $ 35
Employee withheld taxes, social security and vacation payments 32   47          
Taxes payable 24   29          
Deposit received on Tender-Assist Units sale 17             $ 0
Lease liabilities 7   9          
Accrued interest expense 2   4          
Other liabilities 56   67          
Total other liabilities $ 546   $ 496          
v3.23.2
Other liabilities - Balance Sheet (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Other Liabilities [Abstract]      
Other current liabilities $ 295 $ 306  
Other non-current liabilities 251 190 $ 171
Total other liabilities $ 546 $ 496  
v3.23.2
Other liabilities - Movement In Unfavorable Drilling Contracts (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Mar. 31, 2022
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Movement in Unfavorable Drilling Contracts [Roll Forward]                
Carrying amount, beginning balance $ 85 $ 134 $ 85 $ 85 $ 85 $ 85 $ 66 $ 66
Accumulated amortization, beginning balance 3 45 21 8 15 0 60 60
Net carrying amount, beginning balance 82 89 64 77 70 85 6 6
Aquadrill acquisition   49            
Amortization (3) (24) (6) (5)        
Carrying amount, ending balance 85 134 85 85 85 85 66 66
Accumulated amortization, ending balance 3 45 21 8 15 0 60 60
Net carrying amount, ending balance $ 82 $ 89 $ 64 $ 77 $ 70 85 $ 6 $ 6
Reorganization, chapter 11, fresh-start adjustment                
Movement in Unfavorable Drilling Contracts [Roll Forward]                
Carrying amount, beginning balance           19    
Accumulated amortization, beginning balance           (60)    
Net carrying amount, beginning balance           79    
Carrying amount, ending balance           19    
Accumulated amortization, ending balance           (60)    
Net carrying amount, ending balance           $ 79    
v3.23.2
Other liabilities - Narrative (Details)
 6 Months Ended
Jun. 30, 2023
Other Liabilities Disclosure [Abstract]  
Finite lived intangible liabilities remaining amortization period 22 months
v3.23.2
Other liabilities - Future amortization of unfavorable contracts (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Payables and Accruals [Abstract]  
Remainder of 2023 $ 37
2024 30
2025 19
2026 and thereafter 3
Total $ 89
v3.23.2
Leases - Narrative (Details) - rig
Jun. 30, 2023
Jun. 26, 2023
Jul. 01, 2022
Leases [Abstract]      
Number of benign environment jack-up rigs 3 3 3
v3.23.2
Leases - Operating Leases Future Undiscounted Cash Flows (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Operating leases, future minimum payments due, fiscal year maturity [Abstract]    
Remainder of 2023 $ 2  
2024 2  
2025 2  
2026 and thereafter 3  
Operating lease liability payable $ 9 $ 11
v3.23.2
Leases - Balance Sheet (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease liability payable $ 9 $ 11
Less discount (2) (2)
Operating lease liability $ 7 $ 9
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Current $ 3 $ 3
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non-current liabilities Other non-current liabilities
Non-current $ 4 $ 6
v3.23.2
Leases - Supplementary Information (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Operating lease cost          
Operating lease cost $ 20 $ 4 $ 2 $ 14 $ 3
Short-term lease cost 2 1 0 1 0
Total lease cost 22 5 2 15 3
Other information:          
Cash paid for lease liabilities- operating cash flows 22 5 2 15 3
ROU assets obtained in exchange for lease liabilities $ 4 $ 24 $ 0 $ 4 $ 0
Weighted-average remaining lease term in months 21 months 22 months 51 months 21 months 51 months
Weighted-average discount rate 9.00% 9.00% 10.00% 9.00% 10.00%
v3.23.2
Leases - Operating Subleases (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Operating lease payments receivable  
2023 $ 20
2024 53
2025 47
2026 and thereafter 6
Total (1) $ 126
v3.23.2
Common shares - Schedule of Share Capital (Details) - USD ($)
$ / shares in Units, $ in Thousands
 2 Months Ended 3 Months Ended 4 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (in shares) 49,999,998 100,384,435 49,999,998 49,999,998
Cancellation of Predecessor equity (in shares)   (100,384,435)    
Shares issued upon emergence (in shares) 49,999,998 49,999,998   29,866,505
Ending balance (in shares) 49,999,998 49,999,998 79,866,503  
Par value, beginning balance (usd per share) $ 0.01 $ 0.10   $ 0.01
Cancellation of Predecessor equity (usd per share)   0.10    
Issuance of Successor common stock (usd per share)   0.01   $ 0.01
Ending balance (usd per share) $ 0.01 $ 0.01 $ 0.01  
Beginning balance $ 500 $ 10,038 $ 500 $ 500
Issuance of Successor common stock   1,495,000 1,244,000 $ 299
Ending balance $ 500 $ 500 $ 799  
v3.23.2
Common shares - Narrative (Details)
shares in Thousands
Apr. 03, 2023
shares
Aquadrill LLC  
Equity, Class of Treasury Stock [Line Items]  
Stock issued during period, shares, acquisitions (in shares) 29,900
Seadrill Limited | Aquadrill LLC  
Equity, Class of Treasury Stock [Line Items]  
Noncontrolling interest, ownership percentage by noncontrolling owners 37.00%
v3.23.2
Accumulated other comprehensive (loss)/income (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 23, 2022
Mar. 31, 2022
Feb. 22, 2022
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance $ 1,499 $ 1,499 $ (3,716) $ 1,745 $ 1,702 $ 1,503 $ 1,499 $ 1,702
Ending balance 1,499 1,503 1,499 3,079 1,745 1,470 1,470 3,079
Share in results from associated companies     (2) 0   0 0 0
Reorganization, chapter 11, predecessor, before adjustment                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (3,809) (3,809)         (3,809)  
Ending balance     (3,809)          
Accumulated other comprehensive loss                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance 0 0 (15) 2 2 0 0 2
Other comprehensive income   0   0 0 3    
Other comprehensive income from continuing operations     1          
Other comprehensive loss from discontinued operations     (3)          
Recycling of accumulated other comprehensive loss on sale of PES     16          
Reset accumulated other comprehensive loss 1              
Ending balance 0 0 0 2 2 3 3 2
Accumulated other comprehensive loss | Reorganization, chapter 11, predecessor, before adjustment                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (1) (1)         (1)  
Ending balance     (1)          
Actuarial gain relating to pension                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance     (2) 2 2 0   2
Other comprehensive income   0   0 0 3    
Other comprehensive income from continuing operations     1          
Other comprehensive loss from discontinued operations     0          
Recycling of accumulated other comprehensive loss on sale of PES     0          
Reset accumulated other comprehensive loss 1              
Ending balance 0 0   2 2 3 3 2
Actuarial gain relating to pension | Reorganization, chapter 11, predecessor, before adjustment                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance (1) (1)         (1)  
Ending balance     (1)          
Share in unrealized loss from associated companies                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance     (19) 0 0 0   0
Other comprehensive income   0   0 0 0    
Other comprehensive income from continuing operations     0          
Recycling of accumulated other comprehensive loss on sale of PES     21          
Reset accumulated other comprehensive loss 0              
Ending balance 0 0   0 0 0 0 0
Share in unrealized loss from associated companies | Reorganization, chapter 11, predecessor, before adjustment                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance 0 0         0  
Ending balance     0          
Change in debt component on Archer bond                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance     6 0 0 0   0
Other comprehensive income   0   0 0 0    
Other comprehensive income from continuing operations     0          
Recycling of accumulated other comprehensive loss on sale of PES     (5)          
Reset accumulated other comprehensive loss 0              
Ending balance 0 0   $ 0 $ 0 $ 0 0 $ 0
Change in debt component on Archer bond | Reorganization, chapter 11, predecessor, before adjustment                
AOCI Attributable to Parent, Net of Tax [Roll Forward]                
Beginning balance $ 0 $ 0         $ 0  
Ending balance     $ 0          
v3.23.2
Risk management and financial instruments (Details) - USD ($)
$ in Millions
Aug. 08, 2023
Jul. 27, 2023
Feb. 23, 2022
Jun. 30, 2023
Second lien facility | Secured debt:        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent)     12.50%  
Second lien facility | Secured debt: | Subsequent event        
Debt Instrument [Line Items]        
Debt instrument, face amount $ 75      
Basis spread on variable rate (as a percent) 8.375%      
Second lien facility | Secured debt: | Subsequent event | Seadrill Finance        
Debt Instrument [Line Items]        
Debt instrument, face amount   $ 500    
Basis spread on variable rate (as a percent)   8.375%    
Interest rate cap | Not hedged        
Debt Instrument [Line Items]        
Derivative, Cap Interest Rate       2.877%
v3.23.2
Related Party Disclosures - Narrative (Details)
Feb. 24, 2023
NSNCo, PES  
Related Party Transaction [Line Items]  
Ownership interest (as percent) 35.00%
SeaMex Limited  
Related Party Transaction [Line Items]  
Ownership interest (as percent) 100.00%
Seabras loans receivable  
Related Party Transaction [Line Items]  
Ownership interest (as percent) 50.00%
v3.23.2
Related party transactions - Related Party Revenue, Operating Expenses, and Financial Items (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Related Party Transaction [Line Items]            
Total related party operating revenues $ 19 $ 72 $ 57 $ 74 $ 146  
Total related party operating expenses (3) 0 0 0 0  
Management fee revenues            
Related Party Transaction [Line Items]            
Total related party operating revenues 12 55 46   112 $ 60
Reimbursable revenues            
Related Party Transaction [Line Items]            
Total related party operating revenues 3 7 4   14 5
Lease revenue            
Related Party Transaction [Line Items]            
Total related party operating revenues 4 7 7   14 9
Other            
Related Party Transaction [Line Items]            
Total related party operating revenues 0 3 0   6 $ 0
West Hercules lease | West Hercules            
Related Party Transaction [Line Items]            
Total related party operating expenses $ (3) $ 0 $ 0 $ 0 $ 0  
v3.23.2
Related party transactions - Related Party Receivable Balances (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Related Party Transaction [Line Items]      
Allowance for expected credit losses $ (1) $ (1)  
Amounts due from related parties, net 7 27 $ 42
Related party loans and interest      
Related Party Transaction [Line Items]      
Trading and other balances 8 28  
Trading balances      
Related Party Transaction [Line Items]      
Gross amount receivable 8 28  
Less: CECL allowance (1) (1)  
Receivable net of CECL allowance 7 27  
Trading balances | Sonadrill      
Related Party Transaction [Line Items]      
Gross amount receivable 8 17  
Trading balances | Gulfdrill      
Related Party Transaction [Line Items]      
Gross amount receivable 0 9  
Trading balances | PES / SeaMex      
Related Party Transaction [Line Items]      
Gross amount receivable $ 0 $ 2  
v3.23.2
Commitments and contingencies - Guarantees in favor of third parties (Details)
kr in Millions, $ in Millions
 6 Months Ended
Mar. 05, 2023
NOK (kr)
Mar. 05, 2023
USD ($)
Jun. 30, 2023
USD ($)
contract
rig
Dec. 31, 2022
USD ($)
Guarantor Obligations [Line Items]        
Contract value deduction percentage     2.00%  
Minimum | Nigeria        
Guarantor Obligations [Line Items]        
Appeal outcome, waiting period     3 years  
Maximum | Nigeria        
Guarantor Obligations [Line Items]        
Appeal outcome, waiting period     5 years  
SFL Hercules Ltd        
Guarantor Obligations [Line Items]        
Loss contingency, damages sought, value kr 300 $ 28    
Sonadrill fees claimant        
Guarantor Obligations [Line Items]        
Loss contingency, damages sought, value   $ 72    
Sonadrill        
Guarantor Obligations [Line Items]        
Number of rigs operating in joint venture | rig     3  
Number of active contracts | contract     3  
Number of future contracts | contract     1  
Sonadrill | Performance guarantee        
Guarantor Obligations [Line Items]        
Guarantor obligations, maximum exposure, undiscounted     $ 1,100 $ 1,100
Northern Ocean | Performance guarantee        
Guarantor Obligations [Line Items]        
Guarantor obligations, maximum exposure, undiscounted       $ 100
v3.23.2
Fair value of financial instruments - Carrying Value and Estimated Fair Value of Financial Liabilities (Details) - Level 3 - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Fair value | First Lien Senior Secured (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities $ 192 $ 195
Fair value | Second Lien Senior Secured (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 121 284
Fair value | Unsecured senior convertible bond    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 48 46
Carrying value | First Lien Senior Secured (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 184 184
Carrying value | Second Lien Senior Secured (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 121 284
Carrying value | Unsecured senior convertible bond    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities $ 50 $ 50
v3.23.2
Fair value of financial instruments - Carrying Value and Estimated Fair Value of Financial Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Feb. 23, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents $ 412 $ 480 $ 336
Level 1 | Fair value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 412 480  
Restricted cash (Level 1) 127 118  
Level 1 | Carrying value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 412 480  
Restricted cash (Level 1) 127 118  
Level 2 | Fair value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Interest rate cap derivative (Level 2) 0 5  
Level 2 | Carrying value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Interest rate cap derivative (Level 2) $ 0 $ 5  
v3.23.2
Assets held for sale and discontinued operations - Narrative (Details)
$ in Millions
Jun. 30, 2023
rig
Jun. 26, 2023
rig
Jul. 01, 2022
rig
May 19, 2023
USD ($)
rig
Discontinued Operations and Disposal Groups [Abstract]        
Number of tender rigs acquired through acquisition 3     3
Equipment | $       $ 85
Number of benign environment jack-up rigs 3 3 3  
v3.23.2
Assets held for sale and discontinued operations - Rigs held for sale (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale $ 220
Tender-Assist Units  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 85
Gulfdrill rigs  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 135
West Vencedor | Tender-Assist Units  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 23
T-15 | Tender-Assist Units  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 45
T-16 | Tender-Assist Units  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 17
West Tucana | Gulfdrill rigs  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 42
West Castor | Gulfdrill rigs  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale 49
West Telesto | Gulfdrill rigs  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Rigs held for sale $ 44
v3.23.2
Discontinued Operations - Profit and Loss of Discontinued Operations (Details) - USD ($)
$ / shares in Units, $ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain on disposal $ (33) $ 0 $ 0 $ 0 $ 0
Basic LPS: discontinued operations (in USD per share) $ (0.33) $ 0 $ 0 $ 0 $ 0
Diluted LPS: discontinued operations (in USD per share) $ (0.33) $ 0 $ 0 $ 0 $ 0
NSNCo          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain on disposal $ (4) $ 0 $ 0 $ 0 $ 0
Jackup Sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain on disposal $ (29) $ 0 $ 0 $ 0 $ 0
v3.23.2
Discontinued Operations - Narrative (Details)
$ in Millions
 1 Months Ended 3 Months Ended
Jan. 20, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Jun. 30, 2023
Feb. 24, 2023
Sep. 30, 2022
Sep. 01, 2022
rig
Jan. 31, 2022
rig
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Loss on deconsolidation of Paratus Energy Services Ltd $ 112              
Number of jackup units | rig             7 7
Total consideration   $ 670 $ 670          
Discontinued operation gain loss from disposal of discontinued operation before income tax deal cost   11            
Proceeds from divestiture of businesses   $ 659            
Discontinued operation, gain (loss) from disposal of discontinued operation, before income tax     $ 276          
NSNCo                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Noncontrolling interest, ownership percentage by noncontrolling owners 35.00%         35.00%    
NSNCo Noteholders | NSNCo                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Noncontrolling interest, ownership percentage by parent 65.00%              
SeaMex Limited                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest (as percent)         100.00%      
SeaMex Limited | NSNCo                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest (as percent)       100.00%        
Seabras Sapura | NSNCo                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest (as percent)       50.00%        
Archer | NSNCo                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest (as percent)       15.70%        
v3.23.2
Discontinued Operations - Schedule of Gain on Disposal (Details) - USD ($)
$ in Millions
 3 Months Ended
Feb. 24, 2023
Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total consideration   $ 670
Discontinued operation, gain (loss) from disposal of discontinued operation, before income tax   $ 276
Paratus Energy Services    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Initial purchase price $ 43  
Lender incentive fee 1  
Total consideration 44  
Less: Book value of PES investment (31)  
Less: Management Incentive Fee intangible (13)  
Discontinued operation, gain (loss) from disposal of discontinued operation, before income tax $ 0  
v3.23.2
Discontinued Operations - Summary of Major Classes of Line Items Constituting Profit/(Loss) of Discontinued Operations (Details) - USD ($)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Selling, general and administrative expenses $ (6) $ (14) $ (16) $ (24) $ (28)
Depreciation and amortization (17) (37) (39) (52) (73)
Reorganization items 3,651 0 (5) (9) 0
Gain on disposal (33) 0 0 0 0
Vessel and rig operating expenses          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Vessel and rig operating expenses [1] (76) (186) (130) (186) (301)
KSA Business          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Contract revenues 18 0 31 44 0
Total operating revenues 18 0 31 44 0
Selling, general and administrative expenses (1) 0 (3) (4) 0
Depreciation and amortization (4) 0 (7) (10) 0
Amortization of intangibles 0 0 (4) (5) 0
Costs associated with disposal 0 0 0 0 0
Total operating expenses (15) 0 (31) (43) 0
Operating profit 3 0 0 1 0
Interest expense 0 0 0 0 0
Reorganization items (32) 0 0 0 0
Other financial items 0 0 0 0 0
Net profit/(loss) before tax from discontinued operations (29) 0 0 1 0
Income tax expense 0 0 0 (1) 0
Gain on disposal (29) 0 0 0 0
KSA Business | Vessel and rig operating expenses          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Vessel and rig operating expenses (10) $ 0 $ (17) (24) $ 0
Paratus Energy Services          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Contract revenues 12     0  
Total operating revenues 12     0  
Total operating expenses (8)     0  
Operating profit 4     0  
Interest income 0     0  
Interest expense (4)     0  
Share in results from associated companies (net of tax) (1)     0  
Loss on impairment of investments 0     0  
Loss impairment of convertible bond from related party 0     0  
Other financial items (2)     0  
Total financial items (7)     0  
Net profit/(loss) before tax from discontinued operations (3)     0  
Income tax expense (1)     0  
Gain on disposal $ (4)     $ 0  
[1] Includes revenue received from related parties of $72 million, $146 million, $57 million, $74 million and $19 million for the three and six months ended June 30, 2023, the three months ended June 30, 2022, the period from February 23, 2022 through June 30, 2022 and period from January 1, 2022 through February 22, 2022 respectively, and costs paid to related parties of $3 million for the period from January 1, 2022 through February 22, 2022. Refer to Note 24 - Related party transactions for further details.
v3.23.2
Business Combinations - Narrative (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended 10 Months Ended
Apr. 03, 2023
USD ($)
rig
$ / shares
shares
Jun. 30, 2023
USD ($)
rig
Dec. 31, 2022
USD ($)
Jun. 30, 2023
USD ($)
rig
Dec. 31, 2022
USD ($)
May 19, 2023
contract
Business Combination Segment Allocation [Line Items]            
Number of offshore drilling units owned | rig   22   22    
Number of tender-assist drilling units sold | contract           3
Share issuance costs   $ 4        
Initial accounting incomplete, adjustment for financial liabilities       $ 49    
Initial accounting incomplete, adjustment for current financial assets       6    
Initial accounting incomplete, adjustment for non-current financial assets       1    
Additional paid-in capital            
Business Combination Segment Allocation [Line Items]            
Share issuance costs   4        
Aquadrill LLC            
Business Combination Segment Allocation [Line Items]            
Stock issued during period, shares, acquisitions (in shares) | shares 29,900          
Consideration settled by tax withholding $ 30          
Consideration settled in cash $ 1          
Acquisition cost expensed     $ 2 8 $ 3  
Seadrill share price at April 3, 2023 market close (in USD per share) | $ / shares $ 41.62          
Aquadrill LLC | Additional paid-in capital            
Business Combination Segment Allocation [Line Items]            
Share issuance costs   $ 4        
Seadrill Limited            
Business Combination Segment Allocation [Line Items]            
Acquisition cost expensed     $ 3 $ 11    
Aquadrill LLC | Seadrill Limited            
Business Combination Segment Allocation [Line Items]            
Noncontrolling interest, ownership percentage by noncontrolling owners 37.00%          
Drillships | Aquadrill LLC            
Business Combination Segment Allocation [Line Items]            
Number of offshore drilling units owned | rig 4          
Benign environment semi-submersible | Aquadrill LLC            
Business Combination Segment Allocation [Line Items]            
Number of offshore drilling units owned | rig 1          
Tender-assist units | Aquadrill LLC            
Business Combination Segment Allocation [Line Items]            
Number of offshore drilling units owned | rig 3          
v3.23.2
Business Combinations - Schedule of total consideration transferred (Details)
$ / shares in Units, $ in Millions
Apr. 03, 2023
USD ($)
$ / shares
shares
Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 20,797,804
Common shares | Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 20,000,000
Aquadrill restricted stock units | Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 122,104
Aquadrill phantom award units | Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 105,700
Aquadrill phantom appreciation rights | Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 570,000
Aquadrill LLC  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 28,980,417
Company Sale Bonus (in shares) 1,664,743
Total Seadrill shares eligible for purchase of Aquadrill (in shares) 30,645,160
Less: Tax withholding in lieu of common shares (in shares) (744,150)
Less: Seadrill shares settled in cash (in shares) (34,505)
Seadrill shares issued for purchase of Aquadrill (in shares) 29,866,505
Seadrill share price at April 3, 2023 market close (in USD per share) | $ / shares $ 41.62
Consideration issued in Seadrill shares (in shares) | $ $ 1,243
Consideration settled by tax withholding | $ 30
Consideration settled in cash | $ 1
Total consideration | $ $ 1,274
Aquadrill LLC | Chief Executive Officer  
Business Combination Segment Allocation [Line Items]  
Seadrill shares issued for purchase of Aquadrill (in shares) 1,013,405
Consideration settled by tax withholding | $ $ 26
Aquadrill LLC | Common shares  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 28,258,965
Final Exchange Ration (in shares) 1.41
Aquadrill LLC | Aquadrill restricted stock units  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 172,527
Final Exchange Ration (in shares) 1.41
Aquadrill LLC | Aquadrill phantom award units  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 149,349
Final Exchange Ration (in shares) 1.41
Aquadrill LLC | Aquadrill phantom appreciation rights  
Business Combination Segment Allocation [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 399,576
Final Exchange Ration (in shares) 0.70
v3.23.2
Business Combinations - Summary of Identifiable Assets Acquired and Liabilities Assumed as at Acquisition date (Details) - USD ($)
$ in Millions
May 19, 2023
Apr. 03, 2023
Business Combination Segment Allocation [Line Items]    
Equipment $ 85  
Aquadrill LLC    
Business Combination Segment Allocation [Line Items]    
Cash and cash equivalents   $ 51
Restricted cash   5
Accounts receivable   60
Other current assets   36
Total current assets   152
Drilling units   1,255
Deferred tax assets   19
Equipment   1
Other non-current assets   5
Total non-current assets   1,280
Total assets acquired   1,432
Trade accounts payable   11
Other current liabilities   69
Total current liabilities   80
Other non-current liabilities   78
Total non-current liabilities   78
Total liabilities assumed   158
Net asset acquired   $ 1,274
v3.23.2
Business Combinations - Post merger operating results (Details) - Aquadrill LLC
$ in Millions
 3 Months Ended
Jun. 30, 2023
USD ($)
Business Combination Segment Allocation [Line Items]  
Operating revenue $ 131
Profit from continuing operations $ 46
v3.23.2
Business Combinations - Post merger operating results for the full period (Details) - USD ($)
$ / shares in Units, $ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 22, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Business Combination Segment Allocation [Line Items]          
Basic EPS: continuing operations (in USD per share) $ 37.25 $ 1.18 $ (0.72) $ (0.64) $ 2.11
Diluted EPS: continuing operations (in USD per share) $ 37.25 $ 1.16 $ (0.72) $ (0.64) $ 2.07
Aquadrill LLC          
Business Combination Segment Allocation [Line Items]          
Operating revenue   $ 414 $ 291 $ 402 $ 758
Profit/(loss) from continuing operations   $ 82 $ (48) $ (67) $ 121
Basic EPS: continuing operations (in USD per share)   $ 1.03 $ (0.60) $ (0.84) $ 1.52
Diluted EPS: continuing operations (in USD per share)   $ 1.02 $ (0.60) $ (0.84) $ 1.50
v3.23.2
Business Combinations - Results of operations related to the rigs (Details) - Aquadrill LLC - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2023
Business Combination Segment Allocation [Line Items]        
Operating revenue $ 414 $ 291 $ 402 $ 758
Profit/(loss) from continuing operations 82 (48) (67) 121
Tender Rigs        
Business Combination Segment Allocation [Line Items]        
Operating revenue 6 0 0 12
Profit/(loss) from continuing operations (2) (2) (3) (3)
Gulfdrill rigs        
Business Combination Segment Allocation [Line Items]        
Operating revenue 7 7 10 14
Profit/(loss) from continuing operations $ 6 $ 3 $ 4 $ 13
v3.23.2
Subsequent Events (Details)
$ in Millions
 1 Months Ended
Aug. 08, 2023
USD ($)
Jul. 27, 2023
USD ($)
Feb. 23, 2022
Mar. 31, 2023
USD ($)
Feb. 28, 2023
USD ($)
Nov. 30, 2022
USD ($)
Oct. 31, 2022
USD ($)
Aug. 14, 2023
USD ($)
Jul. 28, 2023
USD ($)
rig
Jun. 30, 2023
rig
May 19, 2023
USD ($)
rig
Subsequent Event [Line Items]                      
Number of tender rigs acquired through acquisition | rig                   3 3
Equipment                     $ 85
Second lien facility | Secured debt                      
Subsequent Event [Line Items]                      
Basis spread on variable rate (as a percent)     12.50%                
Payment for debt extinguishment or debt prepayment cost       $ 40 $ 110 $ 250 $ 192        
Subsequent event                      
Subsequent Event [Line Items]                      
Proceeds from issuance of notes $ 550                    
Number of tender rigs acquired through acquisition | rig                 3    
Equipment                 $ 85    
Stock repurchase program, authorized amount               $ 250      
Subsequent event | Senior secured revolving credit facility                      
Subsequent Event [Line Items]                      
Long-term debt, term   5 years                  
Maximum borrowing capacity   $ 225                  
Line of credit facility, accordion feature   100                  
Line of credit facility, provision for issuing letters of credit   50                  
Subsequent event | Second lien facility                      
Subsequent Event [Line Items]                      
Payment for debt extinguishment or debt prepayment cost 123                    
Subsequent event | Second lien facility | Secured debt                      
Subsequent Event [Line Items]                      
Debt instrument, face amount $ 75                    
Basis spread on variable rate (as a percent) 8.375%                    
Basis spread on variable rate of par (as a percent) 100.75%                    
Subsequent event | Second lien facility | Secured debt | Seadrill Finance                      
Subsequent Event [Line Items]                      
Debt instrument, face amount   $ 500                  
Basis spread on variable rate (as a percent)   8.375%                  
Subsequent event | First lien facility                      
Subsequent Event [Line Items]                      
Payment for debt extinguishment or debt prepayment cost $ 187                    
Payment for debt extinguishment, make-whole payment $ 10                    
v3.23.2
Label Element Value
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations $ 598,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations 604,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations 509,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents 539,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents 466,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents 490,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 19,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 2,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 0
Equipment [Member]  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment 0
Property, Plant and Equipment, Gross us-gaap_PropertyPlantAndEquipmentGross 9,000,000
Retained Earnings [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest $ 0
Common Stock [Member]  
Common Stock, Shares, Issued us-gaap_CommonStockSharesIssued 0
Common Stock [Member] | Reorganization, Chapter 11, Predecessor, before Adjustment [Member]  
Common Stock, Shares, Issued us-gaap_CommonStockSharesIssued 0
Additional Paid-in Capital [Member] | Reorganization, Chapter 11, Predecessor, before Adjustment [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest $ 0