Cover |
6 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Cover [Abstract] | |
| Document Type | 6-K |
| Entity Registrant Name | SEADRILL LIMITED |
| Entity Central Index Key | 0001737706 |
| Document Fiscal Year Focus | 2022 |
| Document Fiscal Period Focus | Q2 |
| Current Fiscal Year End Date | --12-31 |
| Document Period End Date | Jun. 30, 2022 |
| Amendment Flag | false |
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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| Statement of Comprehensive Income [Abstract] | |||||
| Net (loss)/profit | $ 3,706 | $ (36) | $ (294) | $ (32) | $ (605) |
| Other comprehensive gain, net of tax, relating to continuing operations: | |||||
| Actuarial gain relating to pension | 1 | 3 | 0 | 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 | 1 |
| Share in results from associated companies | (2) | 0 | 5 | 0 | 4 |
| Other comprehensive income | 14 | 3 | 5 | 3 | 5 |
| Total comprehensive (loss)/income for the period | $ 3,720 | $ (33) | $ (289) | $ (29) | $ (600) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Common shares, par value (in dollars per share) | $ 0.01 | $ 0.10 |
| Common shares authorized (in shares) | 375,000,000 | 138,880,000 |
| Shares issued (in shares) | 49,999,998 | 100,384,435 |
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) |
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 |
Retained loss |
|---|---|---|---|---|---|---|---|---|
| Beginning balance (in shares) at Dec. 31, 2020 | 10,000,000 | |||||||
| Beginning balance at Dec. 31, 2020 | $ (3,140,000,000) | $ 3,504,000,000 | $ (26,000,000) | $ (6,628,000,000) | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net loss from continuing operations | (304,000,000) | (304,000,000) | ||||||
| Net loss from discontinued operations | (7,000,000) | (7,000,000) | ||||||
| Ending balance (in shares) at Mar. 31, 2021 | 10,000,000 | |||||||
| Ending balance at Mar. 31, 2021 | (3,451,000,000) | 3,504,000,000 | (26,000,000) | (6,939,000,000) | ||||
| Beginning balance (in shares) at Dec. 31, 2020 | 10,000,000 | |||||||
| Beginning balance at Dec. 31, 2020 | (3,140,000,000) | 3,504,000,000 | (26,000,000) | (6,628,000,000) | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income (loss) | (605,000,000) | |||||||
| Other comprehensive income | 5,000,000 | |||||||
| Ending balance (in shares) at Jun. 30, 2021 | 10,000,000 | |||||||
| Ending balance at Jun. 30, 2021 | (3,740,000,000) | 3,504,000,000 | (21,000,000) | (7,233,000,000) | ||||
| Beginning balance (in shares) at Mar. 31, 2021 | 10,000,000 | |||||||
| Beginning balance at Mar. 31, 2021 | (3,451,000,000) | 3,504,000,000 | (26,000,000) | (6,939,000,000) | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net loss from continuing operations | (270,000,000) | (270,000,000) | ||||||
| Net loss from discontinued operations | (24,000,000) | (24,000,000) | ||||||
| Other comprehensive income from discontinued operations | 5,000,000 | 5,000,000 | ||||||
| Net income (loss) | (294,000,000) | |||||||
| Other comprehensive income | 5,000,000 | |||||||
| Ending balance (in shares) at Jun. 30, 2021 | 10,000,000 | |||||||
| Ending balance at Jun. 30, 2021 | $ (3,740,000,000) | 3,504,000,000 | (21,000,000) | (7,233,000,000) | ||||
| Beginning balance (in shares) at Dec. 31, 2021 | 100,384,435 | 10,000,000 | ||||||
| Beginning balance at Dec. 31, 2021 | $ (3,716,000,000) | $ 3,504,000,000 | (15,000,000) | (7,215,000,000) | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net loss from continuing operations | (103,000,000) | (103,000,000) | ||||||
| Net loss from discontinued operations | (4,000,000) | (4,000,000) | ||||||
| Other comprehensive income from discontinued operations | (3,000,000) | (3,000,000) | ||||||
| Other comprehensive income from continued operations | 1,000,000 | 1,000,000 | ||||||
| Recycling of PES AOCI on deconsolidation | 16,000,000 | 16,000,000 | ||||||
| Issuance of Successor common stock | $ 500,000 | |||||||
| Cancellation of Predecessor equity (in shares) | (100,384,435) | |||||||
| Cancellation of Predecessor equity | $ (10,038,444) | |||||||
| Net income (loss) | 3,706,000,000 | |||||||
| Other comprehensive income | $ 14,000,000 | |||||||
| Ending balance (in shares) at Feb. 22, 2022 | 49,999,998 | 10,000,000 | ||||||
| Ending balance at Feb. 22, 2022 | $ (3,809,000,000) | $ (3,809,000,000) | 3,504,000,000 | (1,000,000) | (7,322,000,000) | |||
| Beginning balance (in shares) at Feb. 21, 2022 | 100,384,435 | |||||||
| Ending balance (in shares) at Feb. 22, 2022 | 49,999,998 | 10,000,000 | ||||||
| Ending balance at Feb. 22, 2022 | $ (3,809,000,000) | (3,809,000,000) | 3,504,000,000 | (1,000,000) | (7,322,000,000) | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net gain from reorganization adjustments | 5,066,000,000 | 1,495,000,000 | 3,571,000,000 | |||||
| Net gain from Fresh Start adjustments | 242,000,000 | 242,000,000 | ||||||
| Issuance of Successor common stock | 0 | 4,000,000 | (4,000,000) | |||||
| Cancellation of Predecessor equity (in shares) | (10,000,000) | |||||||
| Cancellation of Predecessor equity | $ 0 | (3,504,000,000) | 1,000,000 | 3,513,000,000 | ||||
| Ending balance (in shares) at Feb. 23, 2022 | 49,999,998 | 0 | 0 | |||||
| Ending balance at Feb. 23, 2022 | $ 1,499,000,000 | 1,499,000,000 | 0 | 0 | 0 | |||
| Beginning balance (in shares) at Feb. 22, 2022 | 49,999,998 | 10,000,000 | ||||||
| Beginning balance at Feb. 22, 2022 | $ (3,809,000,000) | (3,809,000,000) | 3,504,000,000 | (1,000,000) | (7,322,000,000) | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income (loss) | $ 4,000,000 | 4,000,000 | ||||||
| Ending balance (in shares) at Mar. 31, 2022 | 49,999,998 | 0 | 0 | |||||
| Ending balance at Mar. 31, 2022 | $ 1,503,000,000 | 1,499,000,000 | 0 | 0 | 4,000,000 | |||
| Beginning balance (in shares) at Feb. 22, 2022 | 49,999,998 | 10,000,000 | ||||||
| Beginning balance at Feb. 22, 2022 | $ (3,809,000,000) | $ (3,809,000,000) | 3,504,000,000 | (1,000,000) | (7,322,000,000) | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income (loss) | (32,000,000) | |||||||
| Other comprehensive income | $ 3,000,000 | |||||||
| Ending balance (in shares) at Jun. 30, 2022 | 49,999,998 | 0 | 0 | |||||
| Ending balance at Jun. 30, 2022 | $ 1,470,000,000 | 1,499,000,000 | 0 | 3,000,000 | (32,000,000) | |||
| Beginning balance (in shares) at Mar. 31, 2022 | 49,999,998 | 0 | 0 | |||||
| Beginning balance at Mar. 31, 2022 | $ 1,503,000,000 | 1,499,000,000 | 0 | 0 | 4,000,000 | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
| Net income (loss) | (36,000,000) | (36,000,000) | ||||||
| Other comprehensive income | $ 3,000,000 | 3,000,000 | ||||||
| Ending balance (in shares) at Jun. 30, 2022 | 49,999,998 | 0 | 0 | |||||
| Ending balance at Jun. 30, 2022 | $ 1,470,000,000 | $ 1,499,000,000 | $ 0 | $ 3,000,000 | $ (32,000,000) |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) |
2 Months Ended | 4 Months Ended | 6 Months Ended |
|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Statement of Cash Flows [Abstract] | |||
| Net operating net loss adjustments related to discontinued operations | $ 25,000,000 | $ 0 | $ 0 |
General information |
6 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| General information | General information Seadrill Limited is incorporated in Bermuda. We provide offshore drilling services to the oil and gas industry. As at June 30, 2022 we owned 21 drilling rigs, leased two, and managed seven rigs on behalf of SeaMex (five) and Sonadrill (two). Our fleet consists of drillships, jackup rigs and semi-submersible rigs for operations in shallow and deepwater areas, as well as benign and harsh environments. 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 23, 2022 (Successor). 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. 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. In our report at June 30, 2021 (Predecessor), we had raised a substantial doubt as to our ability to continue as a going concern as a result of the fact that we were in Chapter 11 proceedings and there was a degree of inherent risk associated with being in bankruptcy and whether the Plan of Reorganization would be confirmed. Having now emerged from Chapter 11 proceedings and with access to exit financing, we believe that cash on hand, contract and other revenues will generate sufficient cash flows to fund our anticipated debt service and working capital requirements for the next twelve months. Therefore, there is no longer a substantial doubt over our ability to continue as a going concern for at least the next twelve months following the date of issue of the financial statements. 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. The accompanying Consolidated Financial Statements include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity in which we are the primary beneficiary. 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, 2021 (Predecessor) (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 entities in which we control directly or indirectly more than 50% of the voting rights. We also consolidate entities in which we hold a variable interest where we are the primary beneficiary of the entity. Subsidiaries, even if fully owned, are excluded from the Consolidated Financial Statements if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated. Fresh Start accounting Upon emergence from bankruptcy on February 22, 2022 (the "Effective Date"), in accordance with ASC 852, Reorganizations ("ASC 852"), Seadrill Limited qualified for Fresh Start accounting and became a new entity for financial reporting purposes. We allocated the reorganization value resulting from Fresh Start accounting in accordance with the purchase price allocation performed as of the Effective Date. 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, 2021. Within the comparative periods presented in these financial statements, Seadrill had not incurred significant rig reactivation costs, and therefore we had not disclosed our accounting policy for rig reactivations in the Consolidated Financial Statements for the year ended December 31, 2021. Though not a change in accounting policy, due to the significant increase in rig reactivation activity starting in the first half of 2022, management has therefore disclosed below our current accounting policy for these costs. Rig reactivation project costs Most reactivation costs are capitalized. The incremental cost of equipment depreservation activities and one-time major equipment overhaul or replacement of systems and equipment, certain directly identifiable personnel costs and costs to move rigs from stacking locations to the shipyards are capitalized and depreciated over the remaining lives of the rigs. General and admin and overhead costs related to reactivation projects are accounted for as operating expenses. Rig upgrade costs that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rigs. Costs incurred to install equipment or modify to current rig specifications that will not increase the marketability of the rig beyond the current contract, and rig mobilization costs, are deferred and amortized over the initial contract period. The cost of reactivation project related long-term maintenance (LTM) activities such as major classification surveys and other major certifications are capitalized and depreciated over a period of between 2 and 5 years (depending on the period covered by the re-certification).
|
Recent Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Accounting Policies [Abstract] | |
| Recent accounting pronouncements | Recent accounting pronouncements Recently adopted accounting standards We adopted the following accounting standard update ("ASUs") since the reporting date of our Form 20-F report (for the year ended December 31, 2021 (Predecessor)), which had no impact on our Consolidated Financial Statements. ASU 2020-06 - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Simplifies the guidance in U.S. GAAP on the issuer’s accounting for convertible debt instruments. Under current guidance, applying the separation models in ASC 470-20 to convertible instruments with a beneficial conversion feature or a cash conversion feature involves the recognition of a debt discount, which is amortized to interest expense. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. Seadrill does not have any instruments with beneficial conversion or cash conversion feature. Accordingly, adoption of this standard had no impact on the financial statements. ASU 2021-05 - Lessors - Certain Leases With Variable Lease Payments Requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate (hereafter referred to as “variable payments”) as an operating lease on the commencement date of the lease if specified criteria are met. Seadrill does not have any sales-type or direct financing leases. ASU 2021-08 - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Requires contract assets and liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured on the acquisition date in accordance with ASC 606. The Company elected to early adopt and apply this standard as of January 1, 2022 as it is relevant to the emergence from Chapter 11 bankruptcy and application of fresh-start accounting. The Company’s deferred revenues balances were evaluated on the basis of ASC 606 at the measurement date (in accordance with ASU 2021-08). No adjustment was made on transition. ASU 2022-03 - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Clarifies that a “contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security” and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value (i.e., the entity should not apply a discount related to the contractual sale restriction). In addition, the ASU prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Seadrill does not apply any discounts related to contractual sale restrictions. Recently issued accounting standards There are currently no recently issued ASUs that are expected to affect our Consolidated Financial Statements and related disclosures in future periods.
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Chapter 11 |
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| 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 NSNCo group, 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 “New Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the New 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 New 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 New 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 New 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 convertible bonds (the “Convertible Bonds”) were issued to Hemen at par upon emergence. The bonds are convertible into the conversion shares (the “Conversion Shares”) in an amount equal to 5.00% of the fully-diluted New Seadrill Common Shares. The principal amount of the Bonds is convertible (in full not part) into the Conversion Shares at the option of the lender at any time during the conversion period, being the period from the earlier of (i) the date on which the Issuer’s ordinary shares are listed and begin trading on the NYSE and (ii) the date on which the Issuer’s ordinary shares are listed and begin trading on the OSE (the “Conversion Period”). 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 Bonds 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 will reclassify 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.
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. On February 19, 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:
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 Statement of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor) and $298 million for the period from February 10, 2021 to December 31, 2021. 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 Statement of Operations. The following table summarizes the reorganization items recognized in the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), and three and six months ended June 30, 2021 (Predecessor)
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, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statement 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 (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.
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 accountingFresh 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 the Successor’s 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:
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:
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 & 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 New Term Loan Facility and New 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.
Reorganization Adjustments (a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(c)Reflects the change in other current assets for the following activities:
(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:
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(g)Reflects the changes in long-term debt for the following activities:
(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:
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
Fresh Start Adjustments (k)Reflects the fair value adjustment to other current assets for the following:
(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. (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:
(q)Reflects the fair value adjustment to other current liabilities for the following:
(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:
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
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| 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 NSNCo group, 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 “New Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the New 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 New 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 New 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 New 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 convertible bonds (the “Convertible Bonds”) were issued to Hemen at par upon emergence. The bonds are convertible into the conversion shares (the “Conversion Shares”) in an amount equal to 5.00% of the fully-diluted New Seadrill Common Shares. The principal amount of the Bonds is convertible (in full not part) into the Conversion Shares at the option of the lender at any time during the conversion period, being the period from the earlier of (i) the date on which the Issuer’s ordinary shares are listed and begin trading on the NYSE and (ii) the date on which the Issuer’s ordinary shares are listed and begin trading on the OSE (the “Conversion Period”). 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 Bonds 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 will reclassify 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.
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. On February 19, 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:
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 Statement of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor) and $298 million for the period from February 10, 2021 to December 31, 2021. 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 Statement of Operations. The following table summarizes the reorganization items recognized in the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), and three and six months ended June 30, 2021 (Predecessor)
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, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statement 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 (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.
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 accountingFresh 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 the Successor’s 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:
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:
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 & 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 New Term Loan Facility and New 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.
Reorganization Adjustments (a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(c)Reflects the change in other current assets for the following activities:
(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:
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(g)Reflects the changes in long-term debt for the following activities:
(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:
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
Fresh Start Adjustments (k)Reflects the fair value adjustment to other current assets for the following:
(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. (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:
(q)Reflects the fair value adjustment to other current liabilities for the following:
(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:
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
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Current Expected Credit Losses |
6 Months Ended |
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Jun. 30, 2022 | |
| Credit Loss [Abstract] | |
| Current Expected Credit Losses | Current Expected Credit LossesThe CECL 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 was no change in allowances for external or related party trade receivables. The expected credit loss allowance on related party balances as at June 30, 2022 (Successor) was $1 million (December 31, 2021 (Predecessor): $1 million). |
Segment information |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment information | Segment information Operating segments We use the management approach to identify our operating segments. We identified the Board of Directors as the Group’s Chief Operating Decision Maker ("CODM") which regularly reviews internal reports when making decisions about allocation of resources to segments and in assessing their performance. We have the following three reportable segments: 1.Harsh environment: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for harsh environment semi-submersible and jackup rigs. 2.Floaters: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for benign environment semi-submersible rigs and drillships. 3.Jackups: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for benign environment jackup rigs. Segment results are evaluated on the basis of operating income and the information presented below is based on information used for internal management reporting. The remaining incidental revenues and expenses not included in the reportable segments are included in the "other" reportable segment. Total operating revenue Operating revenues consist of contract revenues, reimbursable revenues, management contract revenues and other revenues. The segmental analysis of operating revenues is shown in the table below.
Depreciation We record depreciation expense to reduce the carrying value of drilling unit and equipment balances to their residual value over their expected remaining useful economic lives. The segmental analysis of depreciation is shown in the table below.
Amortization of intangibles We record amortization of favorable and unfavorable contracts over the remaining lives of the contracts. The segmental analysis of amortization is shown in the table below.
Operating profit/(loss) - Net profit/(loss) The segmental analysis is shown in the table below.
Drilling units - Total assets The segmental analysis of drilling assets and total assets is shown in the table below.
Drilling units - Capital expenditures The segmental analysis of capital expenditures is shown in the table below.
Geographic segment data 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 information presents our revenues and fixed assets by geographic area: 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 presents our revenues and fixed assets by geographic area:
(1) Other countries represent 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:
(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) "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:
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Revenue from Contracts with Customers |
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| 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:
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:
The Company does not have any contract assets. Significant changes in the contract liabilities balances during the six months ended June 30, 2021 (Predecessor) are as follows:
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Other revenues |
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| Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other revenues | Other revenue Other revenues consist of the following:
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".
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Other operating items |
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| Other operating items | Other operating items Other operating items consist of the following:
The impairment of long-lived assets in 2021 relates to the impairment of the West Hercules connected to changes in the leasing arrangements with SFL. Gain on disposals for the three months ended June 30, 2021 (Predecessor) relates to the sale of the West Vigilant to PT Duta Marina for $7 million and sale of equipment to Northern Ocean for $4 million. There were no gains/losses recorded on the sale of the Sevan Driller and Sevan Brasil in April 2022.
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Interest expense |
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| Interest expense | Interest expenses Interest expense consists of the following:
Cash and payment-in-kind interest on debt facilities We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
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.
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Taxation |
6 Months Ended |
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Jun. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Taxation | Taxation Income tax expense for the period from January 1, 2022 through February 22, 2022 (Predecessor) was $2 million, and for the period from February 23, 2022 through June 30, 2022 (Successor) was $9 million (six months ended June 30, 2021: $11 million). The income tax expense of $2 million for the period from January 1, 2022 through February 22, 2022 (Predecessor), and $9 million for the period from February 23, 2022 through June 30, 2022 (Successor) was primarily due to ordinary taxes in the UK, US and Saudi Arabia, and movements in our Uncertain Tax Positions. The effective tax rate has moved from 0.1% for the period from January 1, 2022 through February 22, 2022 (Predecessor) to (39%) for the period from February 23, 2022 through June 30, 2022 (Successor) due to the non-taxable nature of the reorganization-related items and tax exemption granted or losses incurred in certain jurisdictions. 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 a positive development in relation to the earlier years' assessments, the first tier judicial court has ruled in favor of Seadrill. However, an appeal has since been filed by the tax authorities to the second tier judicial court. 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 an assessment with respect to our 2016 tax return for an aggregate amount equivalent to $17 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. 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. 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.
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Earnings/(Loss) per share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings/(Loss) per share | Earnings/(Loss) 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/LPS includes the effect of the assumed conversion of potentially dilutive instruments. There were no dilutive instruments in the Predecessor period, but the issuance of the convertible note in the Successor period could have been dilutive, had the Company not been in a loss 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/LPS were as follows:
The components of the denominator for the calculation of basic and diluted EPS/LPS were as follows:
The basic and diluted (loss)/earnings per share were as follows:
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Restricted cash |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted Cash and Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted cash | Restricted cash Restricted cash as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor) was as follows:
Restricted cash is presented in our Consolidated Balance Sheets as follows:
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Other Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets | Other Assets As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), other assets included the following:
Other assets were presented in our Consolidated Balance Sheet as follows:
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, 2021 (Predecessor):
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through March 31, 2022 (Successor) and June 30, 2022 (Successor):
On emergence from Chapter 11 proceedings and on application of Fresh Start accounting, new favorable drilling contract and management service contract intangible assets were recognized. For further information refer to Note 4 - "Fresh Start accounting". The amortization is recognized in the Consolidated Statements of Operations as "Amortization of intangibles". The weighted average remaining amortization period for the favorable contracts is 14 months. The table below shows the amounts relating to favorable contracts that is expected to be amortized over the following periods:
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Investment in associated companies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment in associated companies | Investment in associated companies As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), the carrying values of our investments in associated companies were as follows.
Part-disposal of Paratus Energy Services As set out in Note 3 - "Chapter 11", as part of the Group's this wider restructuring process, we sold 65% of our equity interest in Paratus (formerly NSNCo) in January 2022. As a result, the carrying value of the net assets were deconsolidated on the Consolidated Balance Sheet and replaced with the fair value of the retained 35% equity method investment in Paratus, calculated at $56 million. This is accounted for as an investment in associate. Seadrill did not receive any cash consideration for the 65% equity interest in NSNCo. While the release of Seadrill's guarantee of the notes held by NSNCo represents consideration received for the exchange of the 65% equity interest in NSNCo, the fair value of the guarantee was determined to be nil. Thus, no amount would be attributable to the cost of the 35% interest in NSNCo. On emergence from Chapter 11 proceedings and application of Fresh Start accounting a fair value adjustment was made for the investment, reducing the value of PES to $39 million. For further information, refer to Note 4 - "Fresh Start accounting". Our share of post-emergence PES losses amounted to $6 million, further reducing the carrying value to $33 million as at June 30, 2022.
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Drilling units |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Drilling units | Drilling units The following table summarizes the movement for the six months ended June 30, 2021 (Predecessor):
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through March 31, 2022 and June 30, 2022 (Successor):
Derecognition of West Linus On February 19, 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig will be delivered back to SFL upon assignment of the ConocoPhillips drilling contract to SFL. Seadrill has been leasing the harsh environment jackup rig, West Linus, from SFL. The Chapter 11 proceedings afforded Seadrill the option to reject or amend the lease. The amended charter no longer contained a purchase obligation and therefore resulted in the derecognition of the rig asset of $175 million on emergence from Chapter 11 proceedings. Fresh Start accounting On emergence from Chapter 11 proceedings, the carrying value 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. Additions The additions to drilling units in Q2 2022 is comprised primarily of $52 million rig reactivation costs capitalized for the West Carina, West Jupiter, West Leda, West Ariel and West Cressida, $17 million of costs capitalized for the West Tellus and West Saturn in preparation for the contracts with Petrobras, with the remainder consisting of other capital expenditures. Rig disposals The West Venture was sold for recycling to Rota Shipping Inc. for $7 million on January 19, 2022. As the rig was fully impaired, the total consideration, less costs to sell, was recognized as other income in the period from January 1, 2022 to February 22, 2022 (Predecessor). The Sevan Driller and Sevan Brasil were sold to New Fortress Energy on April 7, 2022 for $18 million and $6 million respectively. No gain/loss were recognized on these disposals.
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Equipment |
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| 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, 2021 (Predecessor):
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):
On emergence from Chapter 11 proceedings, the carrying value of our equipment was adjusted to fair value 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 Statement of Operations.
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt The table below sets our external debt agreements as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor):
Debt was presented in our Consolidated Balance Sheets as:
Key changes to borrowing facilities 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"). The term loan facility and RCF 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 3 years. We have recognized exit fees of $5 million and a debt premium of $4 million in respect to the facility. New 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 Seadrill can elect to pay the interest in cash or capitalize the interest to the principal outstanding (dependent on certain conditions set out in the facility agreement). The PIYC interest compounds to the loan quarterly. There is a 5% exit fee required on this facility. We have recognized a exit fee of $35 million in respect to the facility. On June 15, 2022, $14 million payment-in-kind interest was capitalized, including the exit fee of 5% on the interest capitalized. Unsecured convertible notes On emergence, we issued a $50 million unsecured convertible note to Hemen, with a final maturity in August 2028 (the "Convertible Note"). The note bears interest of 6% per annum plus three-month US LIBOR, which is payable quarterly in cash. The Convertible Note is convertible, at the option of the holder, into shares in an amount equal to 5% of the fully-diluted ordinary shares. Debt maturities The outstanding debt as at June 30, 2022 (Successor) is repayable as follows, for the years ended December 31:
No outstanding debt is repayable during the remainder of 2022.
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| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | Other liabilities As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), other liabilities included the following:
Other liabilities are presented in our Consolidated Balance Sheet as follows:
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, 2021 (Predecessor):
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 March 31, 2022 and June 30, 2022 (Successor):
On emergence from Chapter 11 proceedings and on application of Fresh Start accounting, new unfavorable drilling contract intangible liabilities were recognized. For further information refer to Note 4 - ''Fresh Start accounting''. The amortization is recognized in the Consolidated Statements of Operations as "Amortization of intangibles". The weighted average remaining amortization period for the unfavorable contracts is 34 months. The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
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Leases |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases On the bankruptcy Effective date, the Company assumed all outstanding leases and reinstated all associated lease liabilities and right-of-use (“ROU”) assets. As of June 30, 2022, we held operating leases for both the West Linus and West Hercules. We also have operating leases relating to our premises, the most significant being our offices in London, Liverpool, Oslo, Stavanger, Singapore, Houston, Rio de Janeiro and Dubai. 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. Seadrill entered into sale and leaseback arrangements for the West Hercules semi-submersible rig with SFL Hercules Ltd in 2008, the West Linus jackup rig with SFL Linus Ltd in 2014, and the West Taurus semi-submersible rig with SFL Deepwater Ltd in 2008, all wholly owned subsidiaries of SFL Corporation Ltd ("SFL"). The West Taurus lease was terminated in March 2021 and the West Taurus was delivered back to SFL on May 6, 2021. On August 27, 2021, the Bankruptcy Court approved an amendment to the original West Hercules SFL charter based on the current Equinor contract in Norway and in direct continuation (after a period of mobilization) of the subsequent Equinor contract in Canada. The buy-back obligation, that previously resulted in the failed sale and lease back treatment, was removed in this amendment, resulting in a deemed disposal of the West Hercules. Seadrill is leasing the West Hercules from SFL under an operating lease until the end of the Canada contract. The lease is expected to end in October 2022. Refer to Note 24 – “Related party transactions” for further information. On February 22, 2022, Seadrill entered an interim transition charter with SFL, which provides that Seadrill will continue to operate the West Linus until the rig is delivered back to SFL, expected during the second half of 2022. The amended lease for the West Linus results in the recognition of a short-term operating lease. The buy-back obligation, that previously resulted in a failed sale and lease back treatment, was removed in this amendment, resulting in a deemed disposal of the West Linus. Lease fair value and Chapter 11 In accordance with the bankruptcy guidance, liabilities and assets associated with assumed leases should be 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 and follow specific guidance for acquired leases under ''ASC 842'' and ASC 805. In accordance with such guidance, at emergence, assumed leases are remeasured by utilizing 1) the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise); 2) the remaining lease payments; 3) the updated discount rate for the successor entity which is reflective of the new lease term. Further, in a business combination, ASC 842 requires that the acquirer retain the acquiree’s previous lease classification, unless the lease is modified. 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). Right-of-use assets ("ROU assets") In accordance with ASC 805, acquired operating lease ROU assets are measured at the amount of the corresponding lease liabilities adjusted by any favorable or unfavorable terms of the lease as compared to market terms. When determining whether there were any favorable or unfavorable terms of a lease that required recognition, management considered all of the terms of the lease (e.g., contractual rent payments, renewal or termination options, purchase options, lease incentives). Pursuant to the above guidance, as part of its fresh-start valuation, the Company adjusted the ROU asset downwards for the West Hercules and West Linus SFL bareboat charters by $8.6 million and $12.8 million respectively for the effect of off-market rental payments. For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2022 (Successor) are as follows:
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, 2022 (Successor) and December 31, 2021 (Predecessor):
The following table gives supplementary information regarding our lease accounting for the three months ended June 30, 2022 (Successor) and June 30, 2021 (Predecessor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor) and the six months ended June 30, 2021 (Predecessor):
On November 25, 2019, March 15, 2020 and November 15, 2020 respectively, we leased the West Castor, West Telesto and West Tucana to Gulfdrill. The estimated future undiscounted cash flows on these leases are as follows:
Refer to Note 8 – Other revenue for comparative information on income from operating leases.
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| Lessor, Operating Leases [Text Block] | On the bankruptcy Effective date, the Company assumed all outstanding leases and reinstated all associated lease liabilities and right-of-use (“ROU”) assets. As of June 30, 2022, we held operating leases for both the West Linus and West Hercules. We also have operating leases relating to our premises, the most significant being our offices in London, Liverpool, Oslo, Stavanger, Singapore, Houston, Rio de Janeiro and Dubai. 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. Seadrill entered into sale and leaseback arrangements for the West Hercules semi-submersible rig with SFL Hercules Ltd in 2008, the West Linus jackup rig with SFL Linus Ltd in 2014, and the West Taurus semi-submersible rig with SFL Deepwater Ltd in 2008, all wholly owned subsidiaries of SFL Corporation Ltd ("SFL"). The West Taurus lease was terminated in March 2021 and the West Taurus was delivered back to SFL on May 6, 2021. On August 27, 2021, the Bankruptcy Court approved an amendment to the original West Hercules SFL charter based on the current Equinor contract in Norway and in direct continuation (after a period of mobilization) of the subsequent Equinor contract in Canada. The buy-back obligation, that previously resulted in the failed sale and lease back treatment, was removed in this amendment, resulting in a deemed disposal of the West Hercules. Seadrill is leasing the West Hercules from SFL under an operating lease until the end of the Canada contract. The lease is expected to end in October 2022. Refer to Note 24 – “Related party transactions” for further information. On February 22, 2022, Seadrill entered an interim transition charter with SFL, which provides that Seadrill will continue to operate the West Linus until the rig is delivered back to SFL, expected during the second half of 2022. The amended lease for the West Linus results in the recognition of a short-term operating lease. The buy-back obligation, that previously resulted in a failed sale and lease back treatment, was removed in this amendment, resulting in a deemed disposal of the West Linus. Lease fair value and Chapter 11 In accordance with the bankruptcy guidance, liabilities and assets associated with assumed leases should be 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 and follow specific guidance for acquired leases under ''ASC 842'' and ASC 805. In accordance with such guidance, at emergence, assumed leases are remeasured by utilizing 1) the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise); 2) the remaining lease payments; 3) the updated discount rate for the successor entity which is reflective of the new lease term. Further, in a business combination, ASC 842 requires that the acquirer retain the acquiree’s previous lease classification, unless the lease is modified. 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). Right-of-use assets ("ROU assets") In accordance with ASC 805, acquired operating lease ROU assets are measured at the amount of the corresponding lease liabilities adjusted by any favorable or unfavorable terms of the lease as compared to market terms. When determining whether there were any favorable or unfavorable terms of a lease that required recognition, management considered all of the terms of the lease (e.g., contractual rent payments, renewal or termination options, purchase options, lease incentives). Pursuant to the above guidance, as part of its fresh-start valuation, the Company adjusted the ROU asset downwards for the West Hercules and West Linus SFL bareboat charters by $8.6 million and $12.8 million respectively for the effect of off-market rental payments. For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2022 (Successor) are as follows:
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, 2022 (Successor) and December 31, 2021 (Predecessor):
The following table gives supplementary information regarding our lease accounting for the three months ended June 30, 2022 (Successor) and June 30, 2021 (Predecessor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor) and the six months ended June 30, 2021 (Predecessor):
On November 25, 2019, March 15, 2020 and November 15, 2020 respectively, we leased the West Castor, West Telesto and West Tucana to Gulfdrill. The estimated future undiscounted cash flows on these leases are as follows:
Refer to Note 8 – Other revenue for comparative information on income from operating leases.
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Common shares |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares | Common shares Share capital as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor) was as follows:
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Accumulated other comprehensive (loss)/income |
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| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive (loss)/income | Accumulated other comprehensive (loss)/income Accumulated other comprehensive loss for the three month period ended June 30, 2021 (Predecessor) were as follows:
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:
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Risk management and financial instruments |
6 Months Ended |
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Jun. 30, 2022 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Risk management and financial instruments | Risk management and financial instruments We 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 the Board and Audit & Risk Committee. This may include the use of derivative instruments. Credit risk We have financial assets, including cash and cash equivalents, related party receivables, other receivables and certain amounts receivable on derivative instruments. 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 and, as such, we do not expect any significant loss to result from non-performance by such counterparties. However, we have established an allowance on our trade receivables due from related parties reflecting their current financial position, lower credit rating and overdue balances. We do not demand collateral in the normal course of business. As of June 30, 2022, the credit exposure of derivative financial instruments is limited to our interest rate cap. 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 also a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, Danske Bank A/S, DNB, SABB, and BTG Pactual. We consider these risks to be remote, but, from time to time, we may 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. We manage this risk through the use of derivative arrangements. On May 11, 2018, we purchased an interest rate cap for $68 million to mitigate exposure to future increases of LIBOR. Following the termination of 81% of these derivatives in the quarter ended June 30, 2022, the notional amount covered by the cap is $834 million as at June 30, 2022 and results in 91% of our debt being hedged. The interest rate cap is not designated as a hedge and therefore we do not apply hedge accounting. The capped rate against the 3-month US LIBOR is 2.87% and covers the period from June 15, 2018 to June 15, 2023. The 3-month LIBOR rate as at June 30, 2022 was 2.285% The new term loan and second lien debt facilities entered on emergence from Chapter 11 proceedings are referenced to the SOFR, while the Convertible Note is referenced to 3-month US LIBOR and has fallback previous for reference rate benchmark changes.
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Related party transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related party transactions | Related party transactions Prior to emerging from Chapter 11 proceedings on February 22, 2022, our main related parties included (i) affiliated companies over which we held significant influence, and (ii) 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 Archer, Frontline, Seatankers, Northern Drilling and Northern Ocean. Companies over which we hold significant influence include Sonadrill, Gulfdrill and Paratus Energy Services Limited ("PES"), following the disposal of 65% of our PES equity interest. PES owns 100% of SeaMex and holds a 50% equity interest in Seabras Sapura. Prior to November 2, 2021, SeaMex was an affiliated company with which we held a 50% interest. On November 2, 2021, NSNCo purchased the residual equity in SeaMex, which led to it becoming a wholly owned subsidiary, until the disposal of NSNCo in January 2022. Aquadrill (formerly Seadrill Partners) was an affiliated company until it emerged from Chapter 11 proceedings in May 2021. The information presented within the Predecessor period of this note includes all services performed prior to May 2021. 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.
(a) We provide management and administrative services to SeaMex, PES, Sonadrill and, in the Predecessor period, Aquadrill. We provide operational and technical support services to SeaMex, Sonadrill and, in the Predecessor period, Aquadrill and Northern Ocean. We charge our affiliates for support services provided either on a cost-plus mark up or dayrate basis. (b) We recognized reimbursable revenues from Sonadrill for project work on the Quenguela rig. (c) Lease revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill. Related party operating expenses The below table provides an analysis of related party operating expenses for periods presented in this report.
(d) Seadrill entered a charter agreement to lease the West Bollsta rig from Northern Ocean in 2020. During 2021, the charter was amended to cancel the drilling of the 10th well. Following emergence from Chapter 11 proceedings, Northern Ocean is no longer a related party. Refer to Note 20 - ''Leases'' for details. (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. (f) We received services from certain other related parties. These included management and administrative services from Frontline, warehouse rental from Seabras Sapura and other services from Archer and Seatankers. Following emergence from Chapter 11 proceedings, these companies are no longer related parties. Related party receivable balances The below table provides an analysis of related party receivable balances for periods presented in this report.
(g) The Sponsor Minimum Liquidity Shortfall loan receivable from SeaMex, which earned interest at 6.5% plus 3-month US LIBOR, was fully settled in March 2022. (h) Trading balances are primarily comprised of receivables from Gulfdrill for lease income, as well as from SeaMex, PES and Sonadrill 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. (i) 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:
Related party payable balances The below table provides an analysis of related party payable balances as of June 30, 2022 (Successor) and December 31, 2021 (Predecessor) presented in this report.
(j) On filing for Chapter 11, our prepetition related party payables were reclassified to Liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheets at December 31, 2021 (Predecessor). Upon emergence from Chapter 11 proceedings in February 2022, all LSTC balances were extinguished with a gain on settlement recognized in "Reorganization items, net". For further information refer to Note 4 - ''Fresh Start accounting''. Also following emergence, SFL is no longer a related party. The following table provides a summary of the related party lease liabilities to SFL as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor).
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.
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Commitments and contingencies |
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| 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, 2022 (Successor). 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. The Company has the opportunity to reply to this in further support of the motion, the date of which has not yet been determined. Seadrill intends to vigorously defend against the claims Oro Negro asserts and dispute the allegations set forth in the complaint. The proceedings have been stayed since March, 2020. 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 stay in the bankruptcy proceeding will continue while a purchase is agreed. 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"). SMUNL is an Aquadrill entity which is the litigating party on behalf of both Aquadrill and Seadrill as the litigation relates to the West Capella (an Aquadrill rig) and the West Saturn and West Jupiter (Seadrill rigs). On June 28, 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. 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 twelve months, the Company has not been involved in any other material litigation or legal proceedings. Guarantees We have issued guarantees in favor of third parties as follows, which is the maximum potential future payment for each type of guarantee:
(1) Performance guarantees provided on behalf of Northern Ocean of $100 million as at June 30, 2022 (Successor) for the West Mira contract that finished in September 2021 and $150 million as at December 31, 2021 (Predecessor) for the West Mira contract and West Bollsta contracts that finished in May 2021 and February 2022 respectively. (2) Performance guarantees provided on behalf of Sonadrill of $400 million as at June 30, 2022 (Successor) and $400 million as at December 31, 2021 (Predecessor). The respective contract maturities are November 2022 for the Libongos ($50 million) and October 2023 for the Quenguela ($350 million). As of June 30, 2022 (Successor) we have not recognized any liabilities for the above guarantees, as we do not consider it probable that the guarantees will be called.
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Fair value of financial instruments |
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| 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, 2022 (Successor) and December 31, 2021(Predecessor) are as follows:
* The conversion option, together with the issue discount, was recorded in the Predecessor equity which was subsequently cancelled on emergence from Chapter 11 proceedings. Financial instruments categorized as level 2 The fair value of related party loan receivable balances were assumed to be equal to their carrying value, after adjusting for expected credit losses. The loans were categorized as level 2 on the fair value hierarchy and were repaid in 2022. Other trading balances with related parties are not shown in the table above and are discussed in Note 24 - ''Related party transactions''. 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 note. The fair values attributed to the first and second lien debt were derived by discounting the future cash flows associated with each facility, using a weighted average cost of capital range of 10.0% to 13.0%. 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 fair values of the secured credit facilities as at December 31, 2021 were determined by reference to the secured credit facilities holder allocation of the Seadrill fair value post emergence. The fair value was derived using a discounted cash flow model of future free cash flows from each rig, using a weighted average cost of capital range of 17.0%. Upon emergence from Chapter 11 proceedings, our related party loans payable were extinguished and a gain recognized in "Reorganization items, net". The fair value of the related party loans payable as at December 31, 2021, for the West Taurus was derived using the court approved maximum cash settlement amount of $0.25 million. For the West Linus the fair value was derived using a discounted cash flow model of future free cash flows based on the contractual cash flows under the bareboat charter agreement together with the LIBOR linked interest payments, as well as assumed cash outflows under the mandatory repurchase obligation at the end of the lease term. These cash flows were discounted using the weighted average cost of capital of 10%. Our cash and cash equivalents, restricted cash, accounts receivable, and accounts payable are by their nature short-term. As a result, the carrying values included in our Consolidated Balance Sheets approximate fair value.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events Novation of West Gemini On July 1, 2022, we novated the remaining term of the current West Gemini contract with Total Energies in Angola to our Sonadrill joint venture. Seadrill will continue to manage the rig on behalf of Sonadrill. Non-binding offer received for purchase of jackup rigs On August 31, 2022, Seadrill announced that it had received a non-binding proposal for the acquisition of the legal entities that own and operate seven jackup rigs (AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda). The total consideration in a potential sale is expected to be in the range of $645 million to $700 million, inclusive of acquisition consideration and reimbursement for net reactivation, project and mobilization costs. Seadrill is currently considering the proposal and has not entered into any definitive agreements. There can be no assurances that the potential sale will be completed.
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Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
| Accounting Policies [Abstract] | |
| Basis of presentation | Basis of presentation The Consolidated Financial Statements are presented in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The amounts are presented in United States dollar ("US dollar", "$" or "US$") rounded to the nearest million, unless otherwise stated. The accompanying Consolidated Financial Statements include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity in which we are the primary beneficiary. 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, 2021 (Predecessor) (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.
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| Basis of consolidation | Basis of consolidation We consolidate entities in which we control directly or indirectly more than 50% of the voting rights. We also consolidate entities in which we hold a variable interest where we are the primary beneficiary of the entity. Subsidiaries, even if fully owned, are excluded from the Consolidated Financial Statements if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated.
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| Fresh Start accounting | Fresh Start accountingUpon emergence from bankruptcy on February 22, 2022 (the "Effective Date"), in accordance with ASC 852, Reorganizations ("ASC 852"), Seadrill Limited qualified for Fresh Start accounting and became a new entity for financial reporting purposes. We allocated the reorganization value resulting from Fresh Start accounting in accordance with the purchase price allocation performed as of the Effective Date. |
| Recently adopted accounting standards | Recently adopted accounting standards We adopted the following accounting standard update ("ASUs") since the reporting date of our Form 20-F report (for the year ended December 31, 2021 (Predecessor)), which had no impact on our Consolidated Financial Statements. ASU 2020-06 - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Simplifies the guidance in U.S. GAAP on the issuer’s accounting for convertible debt instruments. Under current guidance, applying the separation models in ASC 470-20 to convertible instruments with a beneficial conversion feature or a cash conversion feature involves the recognition of a debt discount, which is amortized to interest expense. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. Seadrill does not have any instruments with beneficial conversion or cash conversion feature. Accordingly, adoption of this standard had no impact on the financial statements. ASU 2021-05 - Lessors - Certain Leases With Variable Lease Payments Requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate (hereafter referred to as “variable payments”) as an operating lease on the commencement date of the lease if specified criteria are met. Seadrill does not have any sales-type or direct financing leases. ASU 2021-08 - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Requires contract assets and liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured on the acquisition date in accordance with ASC 606. The Company elected to early adopt and apply this standard as of January 1, 2022 as it is relevant to the emergence from Chapter 11 bankruptcy and application of fresh-start accounting. The Company’s deferred revenues balances were evaluated on the basis of ASC 606 at the measurement date (in accordance with ASU 2021-08). No adjustment was made on transition. ASU 2022-03 - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Clarifies that a “contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security” and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value (i.e., the entity should not apply a discount related to the contractual sale restriction). In addition, the ASU prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Seadrill does not apply any discounts related to contractual sale restrictions. Recently issued accounting standards There are currently no recently issued ASUs that are expected to affect our Consolidated Financial Statements and related disclosures in future periods.
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| Credit risk and concentration of risk | Credit risk We have financial assets, including cash and cash equivalents, related party receivables, other receivables and certain amounts receivable on derivative instruments. 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 and, as such, we do not expect any significant loss to result from non-performance by such counterparties. However, we have established an allowance on our trade receivables due from related parties reflecting their current financial position, lower credit rating and overdue balances. We do not demand collateral in the normal course of business. As of June 30, 2022, the credit exposure of derivative financial instruments is limited to our interest rate cap. Credit risk is also considered as part of our expected credit loss provision. Concentration of risk There is also a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, Danske Bank A/S, DNB, SABB, and BTG Pactual. We consider these risks to be remote, but, from time to time, we may 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.
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| 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. We manage this risk through the use of derivative arrangements. |
Chapter 11 (Tables) |
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| Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of allocation of shares | The breakout shown below shows the equity allocation before and after the conversion of the convertible bond.
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| 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:
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| Schedule of fresh-start adjustments | The following table summarizes the reorganization items recognized in the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), and three and six months ended June 30, 2021 (Predecessor)
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, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statement 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 (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.
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.
Reorganization Adjustments (a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(c)Reflects the change in other current assets for the following activities:
(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:
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(g)Reflects the changes in long-term debt for the following activities:
(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:
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
Fresh Start Adjustments (k)Reflects the fair value adjustment to other current assets for the following:
(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. (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:
(q)Reflects the fair value adjustment to other current liabilities for the following:
(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:
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
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Fresh Start Accounting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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:
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:
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| Schedule of fresh-start adjustments | The following table summarizes the reorganization items recognized in the three months ended June 30, 2022 (Successor), the period from February 23, 2022 through June 30, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), and three and six months ended June 30, 2021 (Predecessor)
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, 2022 (Successor) and the related adjustments were recorded in the Consolidated Statement 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 (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.
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.
Reorganization Adjustments (a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(c)Reflects the change in other current assets for the following activities:
(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:
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(g)Reflects the changes in long-term debt for the following activities:
(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:
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
Fresh Start Adjustments (k)Reflects the fair value adjustment to other current assets for the following:
(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. (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:
(q)Reflects the fair value adjustment to other current liabilities for the following:
(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:
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
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Segment information (Tables) |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of segment results | Total operating revenue Operating revenues consist of contract revenues, reimbursable revenues, management contract revenues and other revenues. The segmental analysis of operating revenues is shown in the table below.
Depreciation We record depreciation expense to reduce the carrying value of drilling unit and equipment balances to their residual value over their expected remaining useful economic lives. The segmental analysis of depreciation is shown in the table below.
Amortization of intangibles We record amortization of favorable and unfavorable contracts over the remaining lives of the contracts. The segmental analysis of amortization is shown in the table below.
Operating profit/(loss) - Net profit/(loss) The segmental analysis is shown in the table below.
Drilling units - Total assets The segmental analysis of drilling assets and total assets is shown in the table below.
Drilling units - Capital expenditures The segmental analysis of capital expenditures is shown in the table below.
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| Schedule of revenues and fixed assets by geographic area | The following presents our revenues and fixed assets by geographic area:
(1) Other countries represent 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:
(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) "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.
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| 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:
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
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:
The Company does not have any contract assets. Significant changes in the contract liabilities balances during the six months ended June 30, 2021 (Predecessor) are as follows:
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Other revenues (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other revenues | Other revenues consist of the following:
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".
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Other operating items (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating items | Other operating items consist of the following:
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Interest expense (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of interest expense | Interest expense consists of the following:
Cash and payment-in-kind interest on debt facilities We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
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Earnings/(Loss) per share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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/LPS were as follows:
The components of the denominator for the calculation of basic and diluted EPS/LPS were as follows:
The basic and diluted (loss)/earnings per share were as follows:
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Restricted cash (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted Cash and Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of restricted cash | Restricted cash as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor) was as follows:
Restricted cash is presented in our Consolidated Balance Sheets as follows:
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Other Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of other assets | As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), other assets included the following:
Other assets were presented in our Consolidated Balance Sheet as follows:
The following table summarizes the movement for the six months ended June 30, 2021 (Predecessor):
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through March 31, 2022 (Successor) and June 30, 2022 (Successor):
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| Amortization of favorable contracts | The table below shows the amounts relating to favorable contracts that is expected to be amortized over the following periods:
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Investment in associated companies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of investment in associated companies | As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), the carrying values of our investments in associated companies were as follows.
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Drilling units (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of drilling units | The following table summarizes the movement for the six months ended June 30, 2021 (Predecessor):
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through March 31, 2022 and June 30, 2022 (Successor):
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Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment | The following table summarizes the movement for the six months ended June 30, 2021 (Predecessor):
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):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of debt | The table below sets our external debt agreements as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor):
Debt was presented in our Consolidated Balance Sheets as:
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| Debt maturities | The outstanding debt as at June 30, 2022 (Successor) is repayable as follows, for the years ended December 31:
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Other liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | As at June 30, 2022 (Successor) and December 31, 2021 (Predecessor), other liabilities included the following:
Other liabilities are presented in our Consolidated Balance Sheet as follows:
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| 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, 2021 (Predecessor):
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| 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:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2022 (Successor) are as follows:
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| 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, 2022 (Successor) and December 31, 2021 (Predecessor):
The following table gives supplementary information regarding our lease accounting for the three months ended June 30, 2022 (Successor) and June 30, 2021 (Predecessor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the period February 23, 2022 through June 30, 2022 (Successor) and the six months ended June 30, 2021 (Predecessor):
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| Schedule of operating subleases | The estimated future undiscounted cash flows on these leases are as follows:
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Common shares (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of share capital | Share capital as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor) was as follows:
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Accumulated other comprehensive (loss)/income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accumulated other comprehensive income | Accumulated other comprehensive loss for the three month period ended June 30, 2021 (Predecessor) were as follows:
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:
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Related party transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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.
(a) We provide management and administrative services to SeaMex, PES, Sonadrill and, in the Predecessor period, Aquadrill. We provide operational and technical support services to SeaMex, Sonadrill and, in the Predecessor period, Aquadrill and Northern Ocean. We charge our affiliates for support services provided either on a cost-plus mark up or dayrate basis. (b) We recognized reimbursable revenues from Sonadrill for project work on the Quenguela rig. (c) Lease revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill. Related party operating expenses The below table provides an analysis of related party operating expenses for periods presented in this report.
(d) Seadrill entered a charter agreement to lease the West Bollsta rig from Northern Ocean in 2020. During 2021, the charter was amended to cancel the drilling of the 10th well. Following emergence from Chapter 11 proceedings, Northern Ocean is no longer a related party. Refer to Note 20 - ''Leases'' for details. (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. (f) We received services from certain other related parties. These included management and administrative services from Frontline, warehouse rental from Seabras Sapura and other services from Archer and Seatankers. Following emergence from Chapter 11 proceedings, these companies are no longer related parties. Related party receivable balances The below table provides an analysis of related party receivable balances for periods presented in this report.
(g) The Sponsor Minimum Liquidity Shortfall loan receivable from SeaMex, which earned interest at 6.5% plus 3-month US LIBOR, was fully settled in March 2022. (h) Trading balances are primarily comprised of receivables from Gulfdrill for lease income, as well as from SeaMex, PES and Sonadrill 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. (i) 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:
Related party payable balances The below table provides an analysis of related party payable balances as of June 30, 2022 (Successor) and December 31, 2021 (Predecessor) presented in this report.
(j) On filing for Chapter 11, our prepetition related party payables were reclassified to Liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheets at December 31, 2021 (Predecessor). Upon emergence from Chapter 11 proceedings in February 2022, all LSTC balances were extinguished with a gain on settlement recognized in "Reorganization items, net". For further information refer to Note 4 - ''Fresh Start accounting''. Also following emergence, SFL is no longer a related party. The following table provides a summary of the related party lease liabilities to SFL as at June 30, 2022 (Successor) and December 31, 2021 (Predecessor).
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Commitments and contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of guarantees in favor of third parties | We have issued guarantees in favor of third parties as follows, which is the maximum potential future payment for each type of guarantee:
(1) Performance guarantees provided on behalf of Northern Ocean of $100 million as at June 30, 2022 (Successor) for the West Mira contract that finished in September 2021 and $150 million as at December 31, 2021 (Predecessor) for the West Mira contract and West Bollsta contracts that finished in May 2021 and February 2022 respectively. (2) Performance guarantees provided on behalf of Sonadrill of $400 million as at June 30, 2022 (Successor) and $400 million as at December 31, 2021 (Predecessor). The respective contract maturities are November 2022 for the Libongos ($50 million) and October 2023 for the Quenguela ($350 million).
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Fair value of financial instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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, 2022 (Successor) and December 31, 2021(Predecessor) are as follows:
* The conversion option, together with the issue discount, was recorded in the Predecessor equity which was subsequently cancelled on emergence from Chapter 11 proceedings.
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General information (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2022
rig
| |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Number of offshore drilling units owned and operated | 21 |
| Number of leased rigs | 2 |
| Number of offshore drilling units managed and operated for related parties | 7 |
| Related Party Transaction [Line Items] | |
| Number of offshore drilling units managed and operated for related parties | 7 |
| Rig reactivation costs | Minimum | |
| Related Party Transaction [Line Items] | |
| Estimated economic useful life | 2 years |
| Rig reactivation costs | Maximum | |
| Related Party Transaction [Line Items] | |
| Estimated economic useful life | 5 years |
| SeaMex Limited | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Number of offshore drilling units managed and operated for related parties | 5 |
| Related Party Transaction [Line Items] | |
| Number of offshore drilling units managed and operated for related parties | 5 |
| Sonadrill | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Number of offshore drilling units managed and operated for related parties | 2 |
| Related Party Transaction [Line Items] | |
| Number of offshore drilling units managed and operated for related parties | 2 |
Chapter 11 - Narrative (Details) - USD ($) |
2 Months Ended | 11 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Feb. 28, 2022 |
Feb. 10, 2021 |
Feb. 22, 2022 |
Dec. 31, 2021 |
Jun. 30, 2022 |
Feb. 23, 2022 |
Jan. 20, 2022 |
Nov. 02, 2021 |
|
| Reorganization, Chapter 11 [Line Items] | ||||||||
| Total debt | $ 0 | $ 968,000,000 | $ 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 | $ 298,000,000 | ||||||
| Paratus Energy Services | ||||||||
| Reorganization, Chapter 11 [Line Items] | ||||||||
| Ownership interest (as percent) | 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% | |||||||
| 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 | |||||||
| New first lien facility | ||||||||
| 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 | |||||||
| 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, rate | 5.00% |
Chapter 11 - Schedule of Allocation of Shares (Details) - shares |
Jun. 30, 2022 |
Mar. 31, 2022 |
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 21, 2022 |
Dec. 31, 2021 |
|---|---|---|---|---|---|---|
| Reorganization, Chapter 11 [Line Items] | ||||||
| Shares issued (in shares) | 49,999,998 | 49,999,998 | 49,999,998 | 49,999,998 | 100,384,435 | 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] | ||||||
| Shares issued (in 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] | ||||||
| Shares issued (in 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] | ||||||
| Shares issued (in 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] | ||||||
| Shares issued (in shares) | 124,998 | |||||
| % allocation | 0.25% | |||||
| Equity dilution on conversion of convertible bond | 0.24% | |||||
| Allocation to convertible bondholder | ||||||
| Reorganization, Chapter 11 [Line Items] | ||||||
| Shares issued (in shares) | 0 | |||||
| % allocation | 0.00% | |||||
| Equity dilution on conversion of convertible bond | 5.00% |
Chapter 11 - Schedule of Liabilities Subject to Compromise (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Feb. 22, 2022 |
Dec. 31, 2021 |
|---|---|---|---|---|
| Reorganization, Chapter 11 [Line Items] | ||||
| Liabilities subject to compromise | $ 0 | $ 0 | $ 6,235 | |
| Reorganization, chapter 11, predecessor, before adjustment | ||||
| 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 | $ 6,237 |
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|
| Reorganization, Chapter 11 [Line Items] | ||||||||
| Gain on settlement of liabilities subject to compromise | $ 0 | $ 0 | ||||||
| Fresh-start valuation adjustments | 0 | 0 | ||||||
| Loss on deconsolidation of Paratus Energy Services | 0 | 0 | ||||||
| Advisory and professional fees | (5) | (10) | ||||||
| Gain on write-off of related party payables | 0 | 0 | ||||||
| Expense of predecessor Directors & Officers insurance policy | 0 | 0 | ||||||
| Remeasurement of terminated lease to allowed claim | 0 | 0 | ||||||
| Interest income on surplus cash | 0 | 0 | ||||||
| Total reorganization items, net | $ 3,651 | (5) | $ (27) | (10) | $ (230) | |||
| Carrying value of Paratus Energy Services equity at January 20, 2022 | $ (152) | $ 58 | $ 58 | $ 64 | $ 27 | |||
| Fair value of retained 35% interest in Paratus Energy Services | 56 | |||||||
| Reclassification of NSNCo accumulated other comprehensive losses to income on disposal | (16) | |||||||
| Loss on deconsolidation of Paratus Energy Services | $ (112) | |||||||
| Paratus Energy Services | ||||||||
| Reorganization, Chapter 11 [Line Items] | ||||||||
| Ownership interest (as percent) | 35.00% | 35.00% | 35.00% | |||||
| Carrying value of Paratus Energy Services equity at January 20, 2022 | $ 33 | $ 33 | $ 0 | |||||
| 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 | 0 | |||||
| Fresh-start valuation adjustments | 242 | 0 | 0 | |||||
| Loss on deconsolidation of Paratus Energy Services | (112) | 0 | 0 | |||||
| Advisory and professional fees | (44) | (35) | (52) | |||||
| Gain on write-off of related party payables | 0 | 8 | 8 | |||||
| Expense of predecessor Directors & Officers insurance policy | (17) | 0 | 0 | |||||
| Remeasurement of terminated lease to allowed claim | 0 | 0 | (186) | |||||
| Interest income on surplus cash | 1 | 0 | 0 | |||||
| Total reorganization items, net | 3,651 | $ (27) | $ (230) | |||||
| Carrying value of Paratus Energy Services equity at January 20, 2022 | $ 81 | |||||||
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 |
Fresh Start Accounting -Reconciliation Of Enterprise Value And Reorganization Value (Details) - USD ($) $ / shares in Units, $ in Millions |
2 Months Ended | |||
|---|---|---|---|---|
Feb. 23, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
| Reorganizations [Abstract] | ||||
| Enterprise value | $ 2,095 | |||
| Plus: Cash and cash equivalents at emergence | 355 | $ 336 | $ 312 | |
| 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 | ||
| Per share value (US$) (in usd per share) | $ 29.98 | |||
| Plus: Non-interest-bearing current liabilities | $ 350 | 21 | 0 | |
| Plus: Non-interest-bearing non-current liabilities | 179 | $ 947 | $ 0 | |
| Total value of Successor Entity's assets on Emergence | $ 2,979 |
Fresh-Start Accounting- Schedule of Adjustments in Consolidated Balance Sheet (Details) - USD ($) |
Jun. 30, 2022 |
Mar. 31, 2022 |
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 21, 2022 |
Jan. 20, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|---|---|---|---|---|---|
| Reorganization, Chapter 11 [Line Items] | ||||||||||
| Cash and cash equivalents | $ 336,000,000 | $ 355,000,000 | $ 312,000,000 | |||||||
| Restricted cash | 62,000,000 | 85,000,000 | 160,000,000 | |||||||
| Accounts receivable, net | 157,000,000 | 201,000,000 | 169,000,000 | |||||||
| Amounts due from related parties, net | 48,000,000 | 42,000,000 | 28,000,000 | |||||||
| Other current assets | 242,000,000 | 220,000,000 | 191,000,000 | |||||||
| Total current assets | 845,000,000 | 903,000,000 | 1,963,000,000 | |||||||
| Investments in associated companies | 58,000,000 | 64,000,000 | $ (152,000,000) | 27,000,000 | ||||||
| Drilling units | 1,900,000,000 | 1,882,000,000 | 1,777,000,000 | |||||||
| Restricted cash | 70,000,000 | 69,000,000 | 63,000,000 | |||||||
| Deferred tax assets | 8,000,000 | 10,000,000 | 11,000,000 | |||||||
| Equipment | 9,000,000 | 9,000,000 | 11,000,000 | |||||||
| Other Assets, Noncurrent | 33,000,000 | 42,000,000 | 27,000,000 | |||||||
| Total non-current assets | 2,078,000,000 | 2,076,000,000 | 1,916,000,000 | |||||||
| Total assets | 2,923,000,000 | 2,979,000,000 | 3,879,000,000 | |||||||
| Trade accounts payable | 59,000,000 | |||||||||
| Other current liabilities | 241,000,000 | 291,000,000 | 230,000,000 | |||||||
| Total current liabilities | 337,000,000 | 350,000,000 | 1,237,000,000 | |||||||
| Liabilities subject to compromise | 0 | 0 | 6,235,000,000 | |||||||
| Total debt | 968,000,000 | 951,000,000 | 0 | |||||||
| Deferred tax liabilities | 8,000,000 | 6,000,000 | 9,000,000 | |||||||
| Other non-current liabilities | 161,000,000 | 173,000,000 | 114,000,000 | |||||||
| Total non-current liabilities | 1,116,000,000 | 1,130,000,000 | 123,000,000 | |||||||
| Predecessor common shares of par value | 500,000 | $ 500,000 | 500,000 | $ 10,038,444 | 10,038,444 | |||||
| Additional paid-in capital | 1,499,000,000 | 1,499,000,000 | 3,504,000,000 | |||||||
| Accumulated other comprehensive loss | 3,000,000 | (15,000,000) | ||||||||
| Retained loss | (32,000,000) | (7,215,000,000) | ||||||||
| Total equity/(deficit) | 1,470,000,000 | $ 1,503,000,000 | 1,499,000,000 | $ (3,809,000,000) | (3,716,000,000) | $ (3,740,000,000) | $ (3,451,000,000) | $ (3,140,000,000) | ||
| Total liabilities and equity | $ 2,923,000,000 | 2,979,000,000 | $ 3,879,000,000 | |||||||
| Reorganization, chapter 11, predecessor, before adjustment | ||||||||||
| Reorganization, Chapter 11 [Line Items] | ||||||||||
| Cash and cash equivalents | 281,000,000 | |||||||||
| Restricted cash | 135,000,000 | |||||||||
| Accounts receivable, net | 201,000,000 | |||||||||
| Amounts due from related parties, net | 42,000,000 | |||||||||
| Other current assets | 206,000,000 | |||||||||
| Total current assets | 865,000,000 | |||||||||
| Investments in associated companies | 81,000,000 | |||||||||
| Drilling units | 1,778,000,000 | |||||||||
| Restricted cash | 69,000,000 | |||||||||
| Deferred tax assets | 9,000,000 | |||||||||
| Equipment | 11,000,000 | |||||||||
| Other Assets, Noncurrent | 13,000,000 | |||||||||
| Total non-current assets | 1,961,000,000 | |||||||||
| Total assets | 2,826,000,000 | |||||||||
| Trade accounts payable | 59,000,000 | |||||||||
| Other current liabilities | 222,000,000 | |||||||||
| Total current liabilities | 281,000,000 | |||||||||
| Liabilities subject to compromise | 6,237,000,000 | |||||||||
| Deferred tax liabilities | 7,000,000 | |||||||||
| Other non-current liabilities | 110,000,000 | |||||||||
| Total non-current liabilities | 117,000,000 | |||||||||
| Predecessor common shares of par value | 10,000,000 | |||||||||
| Additional paid-in capital | 3,504,000,000 | |||||||||
| Accumulated other comprehensive loss | (1,000,000) | |||||||||
| Retained loss | (7,322,000,000) | |||||||||
| Total equity/(deficit) | (3,809,000,000) | |||||||||
| Total liabilities and equity | 2,826,000,000 | |||||||||
| Reorganization Adjustments | ||||||||||
| Reorganization, Chapter 11 [Line Items] | ||||||||||
| Cash and cash equivalents | 74,000,000 | |||||||||
| Restricted cash | (50,000,000) | |||||||||
| Other current assets | (17,000,000) | |||||||||
| Total current assets | 7,000,000 | |||||||||
| Drilling units | (175,000,000) | |||||||||
| Total non-current assets | (175,000,000) | |||||||||
| Total assets | (168,000,000) | |||||||||
| Other current liabilities | 52,000,000 | |||||||||
| Total current liabilities | 52,000,000 | |||||||||
| Liabilities subject to compromise | (6,237,000,000) | |||||||||
| Total debt | 951,000,000 | |||||||||
| Total non-current liabilities | 951,000,000 | |||||||||
| Predecessor common shares of par value | (10,000,000) | |||||||||
| Additional paid-in capital | 1,499,000,000 | (3,504,000,000) | ||||||||
| Accumulated other comprehensive loss | 1,000,000 | |||||||||
| Retained loss | 7,080,000,000 | |||||||||
| Total equity/(deficit) | $ 1,499,000,000 | 5,066,000,000 | ||||||||
| Total liabilities and equity | (168,000,000) | |||||||||
| Reorganization, chapter 11, fresh-start adjustment | ||||||||||
| Reorganization, Chapter 11 [Line Items] | ||||||||||
| Other current assets | 31,000,000 | |||||||||
| Total current assets | 31,000,000 | |||||||||
| Investments in associated companies | (17,000,000) | |||||||||
| Drilling units | 279,000,000 | |||||||||
| Deferred tax assets | 1,000,000 | |||||||||
| Equipment | (2,000,000) | |||||||||
| Other Assets, Noncurrent | 29,000,000 | |||||||||
| Total non-current assets | 290,000,000 | |||||||||
| Total assets | 321,000,000 | |||||||||
| Other current liabilities | 17,000,000 | |||||||||
| Total current liabilities | 17,000,000 | |||||||||
| Liabilities subject to compromise | 0 | |||||||||
| Deferred tax liabilities | (1,000,000) | |||||||||
| Other non-current liabilities | 63,000,000 | |||||||||
| Total non-current liabilities | 62,000,000 | |||||||||
| Retained loss | 242,000,000 | |||||||||
| Total equity/(deficit) | 242,000,000 | |||||||||
| Total liabilities and equity | $ 321,000,000 |
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, 2021 |
|
| 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 |
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) |
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 |
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 |
Fresh Start Accounting - Reorganization Adjustments, Liabilities Subject to Compromise (Details) - USD ($) |
2 Months Ended | ||||
|---|---|---|---|---|---|
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
| Reorganization, Chapter 11 [Line Items] | |||||
| Accrued interest on external debt | $ 5,000,000 | $ 0 | |||
| Amounts due to SFL Corporation under leases for the West Taurus and West Linus | 36,000,000 | 35,000,000 | |||
| Liabilities subject to compromise | $ 0 | $ 0 | $ 6,235,000,000 | ||
| Issuance of common stock | $ 0 | $ (500,000) | |||
| Reorganization, chapter 11, predecessor, before adjustment | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Senior under-secured external debt | $ 5,662,000,000 | 5,662,000,000 | |||
| Accounts payable and other liabilities | 35,000,000 | 35,000,000 | |||
| Accrued interest on external debt | 34,000,000 | 34,000,000 | |||
| Amounts due to SFL Corporation under leases for the West Taurus and West Linus | 506,000,000 | 506,000,000 | |||
| Liabilities subject to compromise | 6,237,000,000 | 6,237,000,000 | |||
| Reorganization Adjustments | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Liabilities subject to compromise | (6,237,000,000) | $ (6,237,000,000) | |||
| Payment of the AOD cash out option | (116,000,000) | ||||
| Premium associated with the Term Loan Facility | (9,000,000) | ||||
| Debt issuance costs | (30,000,000) | ||||
| Payment of the rig sale proceeds | (45,000,000) | ||||
| Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid | (27,000,000) | ||||
| Derecognition of West Linus rig and return of cash collateral | (182,000,000) | ||||
| Reversal of the release of certain general unsecured operating accruals | (35,000,000) | ||||
| Pre-tax gain on settlement of liabilities subject to compromise | 3,581,000,000 | ||||
| Reorganization Adjustments | Equity commitment premium | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Issuance of common stock | (64,000,000) | ||||
| Reorganization Adjustments | Holders of Prepetition Credit Agreement claims | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Issuance of common stock | (1,244,000,000) | ||||
| Reorganization Adjustments | Rights offering participants | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Issuance of common stock | (187,000,000) | ||||
| Reorganization Adjustments | New Second Lien Facility | |||||
| Reorganization, Chapter 11 [Line Items] | |||||
| Issuance of the New Second Lien Facility | $ (717,000,000) |
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 New 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 |
Fresh Start Accounting - Reorganization Adjustments, Retained Loss (Details) - USD ($) |
2 Months Ended | ||
|---|---|---|---|
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 22, 2022 |
|
| Reorganization, Chapter 11 [Line Items] | |||
| Cancellation of Predecessor equity | $ 0 | $ (10,038,444) | |
| Issuance of Successor common stock | 0 | 500,000 | |
| Retained loss | |||
| Reorganization, Chapter 11 [Line Items] | |||
| Cancellation of Predecessor equity | 3,513,000,000 | ||
| Issuance of Successor common stock | $ (4,000,000) | ||
| Reorganization Adjustments | |||
| Reorganization, Chapter 11 [Line Items] | |||
| Pre-tax gain on settlement of liabilities subject to compromise | $ 3,581,000,000 | ||
| Reversal of the release of certain general unsecured operating accruals | 35,000,000 | ||
| Payment of success-based advisor fees | (28,000,000) | ||
| Expense of Predecessor Directors & Officers insurance policy | (17,000,000) | ||
| Impact to net income | 3,571,000,000 | $ 3,571,000,000 | |
| Net impact to retained loss | $ 7,080,000,000 |
Fresh Start Accounting - Reorganization Adjustments, Additional Paid-In Capital (Details) - USD ($) |
2 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Issuance of Successor common stock | $ 0 | $ 500,000 | |||||||
| Successor additional paid-in capital | 1,499,000,000 | $ (3,809,000,000) | (3,809,000,000) | $ 1,470,000,000 | $ 1,503,000,000 | $ (3,716,000,000) | $ (3,740,000,000) | $ (3,451,000,000) | $ (3,140,000,000) |
| Additional paid-in capital | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Issuance of Successor common stock | 4,000,000 | ||||||||
| Successor additional paid-in capital | 1,499,000,000 | $ 1,499,000,000 | $ 1,499,000,000 | $ 3,504,000,000 | $ 3,504,000,000 | $ 3,504,000,000 | |||
| Reorganization Adjustments | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Successor additional paid-in capital | $ 1,499,000,000 | 5,066,000,000 | $ 5,066,000,000 | ||||||
| Reorganization Adjustments | Holders of Prepetition Credit Agreement claims | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Issuance of Successor common stock | 1,244,000,000 | ||||||||
| Reorganization Adjustments | Additional paid-in capital | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Fair value of the conversion option on the Convertible Bond | 39,000,000 | ||||||||
| Reorganization Adjustments | Additional paid-in capital | Holders of Prepetition Credit Agreement claims | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Issuance of Successor common stock | 1,456,000,000 | ||||||||
| Reorganization Adjustments | Additional paid-in capital | Predecessor Equity Holders | |||||||||
| Reorganization, Chapter 11 [Line Items] | |||||||||
| Issuance of Successor common stock | $ 4,000,000 |
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 |
| 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 |
| NSNCo | |
| Reorganization, Chapter 11 [Line Items] | |
| Fair value adjustment, investments | 14 |
| Sonadrill | |
| Reorganization, Chapter 11 [Line Items] | |
| Fair value adjustment, investments | $ 3 |
Current Expected Credit Losses (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Credit Loss [Abstract] | ||
| Allowance for expected credit losses | $ 1 | $ 1 |
Segment Reporting - Narrative (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2022
contract
| |
| Segment Reporting [Abstract] | |
| Number of reportable segments | 3 |
Segment information - Results by Segment (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Feb. 23, 2022 |
Jan. 20, 2022 |
Jan. 01, 2022 |
Dec. 31, 2021 |
Jan. 01, 2021 |
|
| Segment Reporting Information [Line Items] | ||||||||||
| Total operating revenues | $ 187 | $ 284 | $ 219 | $ 390 | $ 452 | |||||
| Depreciation | 21 | 35 | 41 | 50 | 83 | |||||
| Amortization of intangibles | 0 | 15 | 0 | 18 | 0 | |||||
| Operating loss - Net loss | ||||||||||
| Operating profit/(loss) | 40 | 25 | (228) | 27 | (252) | |||||
| Unallocated items: | ||||||||||
| Total financial and other items | 3,672 | (53) | (33) | (50) | (311) | |||||
| Income tax expense | (2) | (8) | (9) | (9) | (11) | |||||
| (Loss)/profit from continuing operations | 3,710 | (36) | (270) | (32) | (574) | |||||
| Drilling units | 1,900 | 1,900 | $ 1,777 | |||||||
| Carrying value of Paratus Energy Services equity at January 20, 2022 | 58 | 58 | $ 64 | $ (152) | 27 | |||||
| Assets held for sale | 0 | 0 | 1,103 | |||||||
| Cash and restricted cash | 509 | 468 | 593 | 468 | 593 | 509 | $ 535 | 535 | $ 659 | |
| Other assets | 497 | 497 | 437 | |||||||
| Total assets | 2,923 | 2,923 | $ 2,979 | 3,879 | ||||||
| Drilling units - capital expenditures | 22 | 74 | 30 | 91 | 40 | |||||
| Harsh Environment | ||||||||||
| Unallocated items: | ||||||||||
| Drilling units | 314 | 314 | 709 | |||||||
| Drilling units - capital expenditures | 2 | 1 | 12 | 1 | 17 | |||||
| Floaters | ||||||||||
| Unallocated items: | ||||||||||
| Drilling units | 1,111 | 1,111 | 524 | |||||||
| Drilling units - capital expenditures | 18 | 58 | 9 | 74 | 12 | |||||
| Jackups | ||||||||||
| Unallocated items: | ||||||||||
| Drilling units | 475 | 475 | $ 544 | |||||||
| Drilling units - capital expenditures | 2 | 15 | 8 | 16 | 10 | |||||
| Operating Segments | Harsh Environment | ||||||||||
| Segment Reporting Information [Line Items] | ||||||||||
| Total operating revenues | 78 | 101 | 118 | 136 | 232 | |||||
| Depreciation | 7 | 9 | 22 | 11 | 43 | |||||
| Amortization of intangibles | 0 | 5 | 0 | 7 | 0 | |||||
| Operating loss - Net loss | ||||||||||
| Operating profit/(loss) | 16 | 7 | (161) | (2) | (177) | |||||
| Operating Segments | Floaters | ||||||||||
| Segment Reporting Information [Line Items] | ||||||||||
| Total operating revenues | 85 | 141 | 69 | 194 | 154 | |||||
| Depreciation | 6 | 17 | 10 | 24 | 19 | |||||
| Amortization of intangibles | 0 | 6 | 0 | 4 | 0 | |||||
| Operating loss - Net loss | ||||||||||
| Operating profit/(loss) | 9 | 18 | (20) | 30 | (27) | |||||
| Operating Segments | Jackups | ||||||||||
| Segment Reporting Information [Line Items] | ||||||||||
| Total operating revenues | 24 | 42 | 30 | 60 | 60 | |||||
| Depreciation | 8 | 9 | 9 | 15 | 21 | |||||
| Amortization of intangibles | 0 | 4 | 0 | 5 | 0 | |||||
| Operating loss - Net loss | ||||||||||
| Operating profit/(loss) | 12 | 6 | 2 | (2) | (1) | |||||
| Other | Other | ||||||||||
| Segment Reporting Information [Line Items] | ||||||||||
| Total operating revenues | 0 | 0 | 2 | 0 | 6 | |||||
| Amortization of intangibles | 0 | 0 | 0 | 2 | 0 | |||||
| Operating loss - Net loss | ||||||||||
| Operating profit/(loss) | 3 | (6) | (49) | 1 | (47) | |||||
| Unallocated items: | ||||||||||
| Drilling units - capital expenditures | $ 0 | $ 0 | $ 1 | $ 0 | $ 1 | |||||
Segment Information - Geographic (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | $ 187 | $ 284 | $ 219 | $ 390 | $ 452 | |
| Drilling units | 1,900 | 1,900 | $ 1,777 | |||
| Norway | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 78 | 72 | 117 | 106 | 234 | |
| Drilling units | 314 | 314 | 710 | |||
| Angola | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 43 | 72 | 35 | 97 | 53 | |
| United States | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 20 | 43 | 14 | 56 | 46 | |
| Drilling units | 276 | 276 | 92 | |||
| Saudi Arabia | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 18 | 31 | 22 | 44 | 42 | |
| Drilling units | 199 | 199 | 224 | |||
| Canada | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 0 | 29 | 0 | 29 | 0 | |
| Brazil | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | 19 | 25 | 31 | 41 | 54 | |
| Drilling units | 332 | 332 | 169 | |||
| Others | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Total operating revenues | $ 9 | 12 | $ 0 | 17 | $ 23 | |
| Drilling units | 494 | 494 | 535 | |||
| Spain | ||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
| Drilling units | $ 285 | $ 285 | $ 47 | |||
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Sonadrill | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 8.00% | 16.00% | 9.00% | 15.00% | 8.00% |
| ConocoPhillips | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 12.00% | 14.00% | 20.00% | 14.00% | 19.00% |
| Var Energi | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 10.00% | 11.00% | 0.00% | 12.00% | 0.00% |
| Saudi Aramco | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 10.00% | 11.00% | 10.00% | 11.00% | 9.00% |
| Equinor | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 9.00% | 10.00% | 14.00% | 8.00% | 13.00% |
| Lundin | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 10.00% | 0.00% | 14.00% | 1.00% | 12.00% |
| Other | |||||
| Revenue, Major Customer [Line Items] | |||||
| Concentration risk percentage | 41.00% | 38.00% | 33.00% | 39.00% | 39.00% |
Revenue from Contracts with Customers - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Revenue from Contract with Customer [Abstract] | |||
| Accounts receivable, net | $ 157 | $ 201 | $ 169 |
| Current contract liabilities (classified within other current liabilities) | (22) | (25) | |
| Non-current contract liabilities (classified within other non-current liabilities) | $ (8) | $ (10) |
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, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
| Revenue from Contract with Customer [Abstract] | |||||
| Contract liabilities, beginning balance | $ (19) | $ (35) | $ (22) | $ (28) | $ (31) |
| Amortization of revenue that was included in the beginning contract liability balance | 16 | 14 | 5 | 5 | |
| Cash received, excluding amounts recognized as revenue | (3) | (22) | (8) | (2) | |
| Contract liabilities, ending balance | $ (22) | $ (19) | $ (30) | $ (31) | $ (28) |
Other revenues (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Variable Interest Entity [Line Items] | |||||
| Leasing revenues | $ 4 | $ 7 | $ 6 | $ 9 | $ 12 |
| Other | 1 | 0 | 0 | 0 | 0 |
| Other revenues | |||||
| Variable Interest Entity [Line Items] | |||||
| Total other revenues | $ 5 | $ 7 | $ 6 | $ 9 | $ 12 |
Other operating items (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Other Income and Expenses [Abstract] | |||||
| Impairment | $ 0 | $ 0 | $ (152) | $ 0 | $ (152) |
| Gain on disposals | 2 | 0 | 11 | 0 | 11 |
| Other operating income | 0 | 0 | 0 | 0 | 3 |
| Total other operating items | $ 2 | $ 0 | $ (141) | $ 0 | $ (138) |
Other operating items - Additional Information (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
| Gain on disposals | $ 2 | $ 0 | $ 11 | $ 0 | $ 11 |
| PT Duta Marina | |||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
| Gain on disposals | 7 | ||||
| Northern Ocean | |||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
| Gain on disposals | $ 4 | ||||
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Interest Expense [Abstract] | |||||
| Cash and payment-in-kind interest on debt facilities | $ 0 | $ (30) | $ 0 | $ (41) | $ (24) |
| Interest on SFL leases | (7) | 0 | (22) | 0 | (55) |
| Unwinding of debt premium | 0 | 0 | 0 | 1 | 0 |
| Interest expense | $ (7) | $ (30) | $ (22) | $ (40) | $ (79) |
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Debt Instrument [Line Items] | |||||
| Total debt principal | $ 0 | $ (30) | $ 0 | $ (41) | $ (24) |
| Pre-filing senior credit facilities | |||||
| Debt Instrument [Line Items] | |||||
| Total debt principal | 0 | 0 | 0 | 0 | (24) |
| Post-emergence first-lien senior secured | |||||
| Debt Instrument [Line Items] | |||||
| Total debt principal | 0 | (3) | 0 | (5) | 0 |
| Post-emergence second lien senior secured | |||||
| Debt Instrument [Line Items] | |||||
| Total debt principal | 0 | (26) | 0 | (35) | 0 |
| Post-emergence unsecured convertible bond | |||||
| Debt Instrument [Line Items] | |||||
| Total debt principal | $ 0 | $ (1) | $ 0 | $ (1) | $ 0 |
Taxation (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Income Tax Contingency [Line Items] | ||||||
| Income tax expense | $ 2 | $ 8 | $ 9 | $ 9 | $ 11 | |
| Effective tax rate | 0.10% | (39.00%) | ||||
| 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 | 17 | |||||
| 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 | |||||
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Earnings Per Share [Abstract] | |||||
| (Loss)/profit from continuing operations | $ 3,710 | $ (36) | $ (270) | $ (32) | $ (574) |
| Loss from discontinued operations | (4) | 0 | (24) | 0 | (31) |
| (Loss)/profit available to stockholders | 3,706 | (36) | (294) | (32) | (605) |
| Effect of dilution | 0 | 0 | 0 | 0 | 0 |
| Diluted (loss)/profit available to stockholders | $ 3,706 | $ (36) | $ (294) | $ (32) | $ (605) |
| Basic (loss)/earnings per share: | |||||
| Weighted average number of shares (in shares) | 100 | 50 | 100 | 50 | 100 |
| Diluted(loss)/earnings per share: | |||||
| Effect on dilution (in shares) | 0 | 0 | 0 | 0 | 0 |
| Weighted average number of common shares outstanding adjusted for the effects of dilution (in shares) | 100 | 50 | 100 | 50 | 100 |
| Basic (loss)/earnings per share from continuing operations (in USD per share) | $ 36.96 | $ (0.72) | $ (2.69) | $ (0.64) | $ (5.72) |
| Diluted (loss)/earnings per share from continuing operations (in USD per share) | 36.96 | (0.72) | (2.69) | (0.64) | (5.72) |
| Basic loss per share from discontinued operations (in USD per share) | (0.04) | 0 | (0.24) | 0 | (0.31) |
| Diluted loss per share from discontinued operations (in USD per share) | (0.04) | 0 | (0.24) | 0 | (0.31) |
| Basic (loss)/earnings per share (in USD per share) | 36.92 | (0.72) | (2.93) | (0.64) | (6.03) |
| Diluted (loss)/earnings per share (in USD per share) | $ 36.92 | $ (0.72) | $ (2.93) | $ (0.64) | $ (6.03) |
Restricted cash (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Current restricted cash | $ 62 | $ 85 | $ 160 |
| Non-current restricted cash | 70 | $ 69 | 63 |
| Total restricted cash | 132 | 223 | |
| Demand deposit pledged as collateral for tax related guarantee | |||
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Total restricted cash | 70 | 63 | |
| Cash held in escrow in Saudi Arabia | |||
| 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 | 28 | |
| Accounts pledged as collateral for guarantees related to rig recycling | |||
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Total restricted cash | 11 | 14 | |
| Proceeds from rig sales | |||
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Total restricted cash | 2 | 47 | |
| Accounts pledged as collateral for SFL leases | |||
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Total restricted cash | 6 | 37 | |
| Other | |||
| Restricted Cash and Cash Equivalents Items [Line Items] | |||
| Total restricted cash | $ 9 | $ 11 |
Other Assets - Other Asset Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Other Assets [Abstract] | ||
| Favorable drilling and management services contracts | $ 84 | $ 9 |
| Taxes receivable | 49 | 48 |
| Prepaid expenses | 50 | 54 |
| Deferred contract costs | 36 | 15 |
| Right of use asset | 20 | 24 |
| Reimbursable amounts due from customers | 11 | 13 |
| Restructuring backstop commitment fee | 0 | 20 |
| Derivative asset - Interest rate cap | 5 | 0 |
| Other | 20 | 35 |
| Total other assets | $ 275 | $ 218 |
| Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Other Assets - Balance Sheet Presentation (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Other Assets [Abstract] | |||
| Other current assets | $ 242 | $ 220 | $ 191 |
| Other non-current assets | 33 | $ 42 | 27 |
| Total other assets | $ 275 | $ 218 |
Other Assets - Roll forward (Details) - USD ($) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Feb. 23, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Other Assets [Roll Forward] | ||||||||
| Beginning balance, Gross carrying amount | $ 110 | $ 110 | $ 266 | $ 266 | $ 110 | $ 266 | $ 266 | |
| Beginning balance, Accumulated amortization | (6) | (26) | (256) | (256) | 0 | (257) | (256) | |
| Beginning balance, Net carrying amount | 104 | 84 | 10 | 10 | 110 | 9 | 10 | |
| Ending balance, Gross carrying amount | 110 | 110 | 266 | 266 | 110 | 266 | 266 | |
| Ending balance, Accumulated amortization | (6) | (26) | (256) | (256) | 0 | (257) | (256) | |
| Ending balance, Net carrying amount | 104 | 84 | 10 | 10 | 110 | $ 9 | $ 10 | |
| Reorganization, chapter 11, fresh-start adjustment | ||||||||
| Other Assets [Roll Forward] | ||||||||
| Beginning balance, Gross carrying amount | (156) | |||||||
| Beginning balance, Accumulated amortization | 257 | |||||||
| Beginning balance, Net carrying amount | 101 | |||||||
| Ending balance, Gross carrying amount | (156) | |||||||
| Ending balance, Accumulated amortization | 257 | |||||||
| Ending balance, Net carrying amount | 101 | |||||||
| 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 | $ (6) | $ 0 | $ (20) | $ 0 | $ 0 | |||
Other Assets - Narrative (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2022 | |
| Other Assets [Abstract] | |
| Weighted average remaining amortization period for the favorable contracts | 14 months |
Other Assets - Amortization (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
|---|---|
| Other Assets [Abstract] | |
| 2022 | $ 37 |
| 2023 | 31 |
| 2024 | 2 |
| 2025 and thereafter | 14 |
| Total | $ 84 |
Investment in associated companies (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Jan. 20, 2022 |
Dec. 31, 2021 |
|---|---|---|---|---|
| Schedule of Equity Method Investments [Line Items] | ||||
| Investments in associated companies | $ 58 | $ 64 | $ (152) | $ 27 |
| Paratus Energy Services | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| Investments in associated companies | 33 | 0 | ||
| Sonadrill | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| Investments in associated companies | 25 | 27 | ||
| Gulfdrill | ||||
| Schedule of Equity Method Investments [Line Items] | ||||
| Investments in associated companies | $ 0 | $ 0 |
Investment in associated companies - Narrative (Details) - USD ($) |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Feb. 23, 2022 |
Jan. 20, 2022 |
Dec. 31, 2021 |
|
| Schedule of Equity Method Investments [Line Items] | |||||||||
| Income (loss) from equity method investments | $ (2,000,000) | $ (8,000,000) | $ 0 | $ (6,000,000) | $ 1,000,000 | ||||
| Investments in associated companies | $ 58,000,000 | $ 58,000,000 | $ 58,000,000 | $ 64,000,000 | $ (152,000,000) | $ 27,000,000 | |||
| Reorganization, chapter 11, fresh-start adjustment | |||||||||
| Schedule of Equity Method Investments [Line Items] | |||||||||
| Investments in associated companies | $ (17,000,000) | ||||||||
| Paratus Energy Services | |||||||||
| Schedule of Equity Method Investments [Line Items] | |||||||||
| Ownership interest (as percent) | 35.00% | 35.00% | 35.00% | 35.00% | |||||
| Equity method investments, fair value disclosure | $ 56,000,000 | ||||||||
| Income (loss) from equity method investments | $ (6,000,000) | ||||||||
| Investments in associated companies | $ 33,000,000 | $ 33,000,000 | $ 33,000,000 | $ 0 | |||||
| Paratus Energy Services | Reorganization, chapter 11, fresh-start adjustment | |||||||||
| Schedule of Equity Method Investments [Line Items] | |||||||||
| Assets, fair value adjustment | $ 39,000,000 | ||||||||
| Paratus Energy Services | |||||||||
| Schedule of Equity Method Investments [Line Items] | |||||||||
| Noncontrolling interest, ownership percentage by parent | 65.00% | ||||||||
| Guarantees, fair value disclosure | $ 0 | ||||||||
Drilling units (Details) - USD ($) $ in Thousands |
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, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Cost | ||||||||||
| Impairment | $ 0 | $ 0 | $ (152,000) | $ 0 | $ (152,000) | |||||
| Drilling units | ||||||||||
| Cost | ||||||||||
| Opening balance | $ 2,684,000 | $ 2,684,000 | 2,685,000 | 1,899,000 | 3,118,000 | $ 3,108,000 | 2,684,000 | 3,108,000 | ||
| Additions | 17,000 | 22,000 | 74,000 | 29,000 | 10,000 | |||||
| Impairment | (152,000) | |||||||||
| Disposals | (23,000) | (24,000) | ||||||||
| Derecognition of West Linus | 211,000 | |||||||||
| Closing balance | 1,882,000 | 1,899,000 | 2,684,000 | 1,949,000 | 2,995,000 | 3,118,000 | 1,949,000 | 2,995,000 | ||
| Accumulated depreciation | ||||||||||
| Opening balance | 906,000 | 906,000 | 908,000 | 15,000 | 1,029,000 | 988,000 | 906,000 | 988,000 | ||
| Depreciation | (15,000) | (21,000) | (34,000) | (39,000) | (41,000) | |||||
| Disposals | 23,000 | 0 | ||||||||
| Derecognition of West Linus | 36,000 | |||||||||
| Closing balance | 0 | 15,000 | 906,000 | 49,000 | 1,068,000 | 1,029,000 | 49,000 | 1,068,000 | ||
| Disposals, Net | 0 | (24,000) | ||||||||
| Derecognition of West Linus | (175,000) | |||||||||
| Net book value | (1,882,000) | (1,884,000) | (1,778,000) | $ (1,900,000) | $ (1,927,000) | $ (2,089,000) | (1,900,000) | $ (1,927,000) | $ (1,777,000) | $ (2,120,000) |
| Drilling units | Reorganization, chapter 11, fresh-start adjustment | ||||||||||
| Cost | ||||||||||
| Opening balance | 591,000 | 591,000 | 591,000 | |||||||
| Closing balance | 591,000 | |||||||||
| Accumulated depreciation | ||||||||||
| Opening balance | $ 870,000 | $ 870,000 | $ 870,000 | |||||||
| Closing balance | 870,000 | |||||||||
| Net book value | $ 279,000 | |||||||||
Drilling units - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Apr. 07, 2022 |
Jan. 19, 2022 |
Mar. 31, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
| Property, Plant and Equipment [Line Items] | |||||||
| Reorganization value, rig asset derecognized | $ 175 | ||||||
| Drilling units | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Additions | $ 17 | $ 22 | $ 74 | $ 29 | $ 10 | ||
| Drilling units | West Venture rig | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Proceeds from sale of rigs | $ 7 | ||||||
| Drilling units | Sevan Driller rig | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Proceeds from sale of rigs | $ 18 | ||||||
| Drilling units | Sevan Brasil rig | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Proceeds from sale of rigs | $ 6 | ||||||
| Drilling units | West Carina, West Jupiter, West Leda, West Ariel and West Cressida rigs | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Additions | 52 | ||||||
| Drilling units | West Tellus and West Saturn rigs | |||||||
| Property, Plant and Equipment [Line Items] | |||||||
| Additions | $ 17 | ||||||
Equipment (Details) - Equipment - USD ($) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Feb. 23, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Cost | ||||||||
| Opening balance | $ 39 | $ 39 | $ 9 | $ 39 | $ 39 | |||
| Additions | 1 | |||||||
| Closing balance | 9 | 39 | 10 | 39 | 39 | |||
| Accumulated depreciation | ||||||||
| Opening balance | (28) | (28) | 0 | (21) | (20) | |||
| Depreciation | (1) | (2) | (1) | |||||
| Closing balance | 0 | (28) | (1) | (23) | (21) | |||
| Net book value | 9 | 11 | $ 9 | $ 16 | $ 18 | $ 9 | $ 11 | $ 19 |
| Reorganization Adjustments | ||||||||
| Cost | ||||||||
| Opening balance | (30) | |||||||
| Closing balance | (30) | |||||||
| Accumulated depreciation | ||||||||
| Opening balance | $ 28 | |||||||
| Closing balance | 28 | |||||||
| Net book value | $ (2) | |||||||
Equipment - Narrative (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Property, Plant and Equipment [Line Items] | ||||||
| Reorganization items, net paid | $ (3,651) | $ 5 | $ 27 | $ 10 | $ 230 | |
| Reorganization, chapter 11, fresh-start adjustment | Equipment | ||||||
| Property, Plant and Equipment [Line Items] | ||||||
| Reorganization items, net paid | $ (2) | |||||
Debt - Schedule of Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Debt Instrument [Line Items] | |||
| Total principal debt | $ 924 | $ 0 | |
| Total debt | 968 | $ 951 | 0 |
| Debt due within one year | 21 | 350 | 0 |
| Long-term debt | 947 | 179 | 0 |
| Secured Debt | |||
| Debt Instrument [Line Items] | |||
| Total principal debt | 874 | 0 | |
| Unsecured notes | |||
| Debt Instrument [Line Items] | |||
| Total principal debt | 50 | 0 | |
| Term Loan Facility | |||
| Debt Instrument [Line Items] | |||
| Debt premium | 4 | 0 | |
| Term Loan Facility | Secured Debt | |||
| Debt Instrument [Line Items] | |||
| Total principal debt | 175 | 0 | |
| Exit fee | 5 | 0 | |
| Second Lien Facility | Secured Debt | |||
| Debt Instrument [Line Items] | |||
| Total principal debt | 699 | 0 | |
| Exit fee | 35 | 35 | 0 |
| Total debt | $ 683 | ||
| Unsecured convertible notes | Unsecured notes | |||
| Debt Instrument [Line Items] | |||
| Total principal debt | $ 50 | $ 0 |
Debt - Narrative (Details) - USD ($) $ in Thousands |
4 Months Ended | |||
|---|---|---|---|---|
Jun. 15, 2022 |
Feb. 23, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
| Debt Instrument [Line Items] | ||||
| Total debt | $ 951,000 | $ 968,000 | $ 0 | |
| Total principal debt | 924,000 | 0 | ||
| Super Senior Secured Credit Facility Due 2026 | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, debt default, percentage | 3.00% | |||
| Make-whole premium payable period | 3 years | |||
| Exit fee | $ 5,000 | |||
| Debt premium | $ 4,000 | |||
| Super Senior Secured Credit Facility Due 2026 | Secured Overnight Financing Rate (SOFR) | ||||
| Debt Instrument [Line Items] | ||||
| Basis spread on variable rate (as a percent) | 7.00% | |||
| Term Loan Facility | ||||
| Debt Instrument [Line Items] | ||||
| Debt premium | $ 4,000 | 0 | ||
| Line of Credit | Super Senior Secured Credit Facility Due 2026 | Secured Debt | ||||
| Debt Instrument [Line Items] | ||||
| Total debt | $ 175,000 | |||
| Line of Credit | Super Senior Secured Credit Facility Due 2026 | Revolving Credit Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total debt | 125,000 | |||
| Line of credit facility, unused capacity, commitment fee percentage | 2.80% | |||
| Unsecured notes | Unsecured convertible notes | ||||
| Debt Instrument [Line Items] | ||||
| Total debt | $ 50,000 | |||
| Basis spread on variable rate (as a percent) | 6.00% | |||
| Convertible note value as a percentage of fully-diluted ordinary shares | 5.00% | |||
| Unsecured notes | Unsecured convertible notes | 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 | $ 874,000 | 0 | ||
| Secured Debt | Super Senior Secured Credit Facility Due 2026 | ||||
| Debt Instrument [Line Items] | ||||
| Maximum borrowing capacity | $ 300,000 | |||
| Secured Debt | Term Loan Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total principal debt | 175,000 | 0 | ||
| Exit fee | 5,000 | 0 | ||
| Secured Debt | Pari Passu Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total principal debt | 50,000 | |||
| Secured Debt | Second Lien Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total debt | $ 683,000 | |||
| Basis spread on variable rate (as a percent) | 12.50% | |||
| Total principal debt | 699,000 | 0 | ||
| Debt instrument, debt default, percentage | 5.00% | 5.00% | ||
| Exit fee | $ 35,000 | $ 35,000 | $ 0 | |
| Interest costs capitalized | $ 14,000 | |||
| 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% |
Debt - Debt Maturity (Details) |
Jun. 30, 2022
USD ($)
|
|---|---|
| Debt Instrument [Line Items] | |
| 2023 | $ 42,000,000 |
| 2024 | 42,000,000 |
| 2025 | 42,000,000 |
| 2026 | 222,000,000 |
| 2027 | 566,000,000 |
| 2028 | 50,000,000 |
| Total debt principal | 964,000,000 |
| Term Loan Facility | |
| Debt Instrument [Line Items] | |
| 2023 | 0 |
| 2024 | 0 |
| 2025 | 0 |
| 2026 | 180,000,000 |
| 2027 | 0 |
| 2028 | 0 |
| Total debt principal | 180,000,000 |
| Second Lien Facility | |
| Debt Instrument [Line Items] | |
| 2023 | 42,000,000 |
| 2024 | 42,000,000 |
| 2025 | 42,000,000 |
| 2026 | 42,000,000 |
| 2027 | 566,000,000 |
| 2028 | 0 |
| Total debt principal | 734,000,000 |
| Unsecured convertible notes | |
| Debt Instrument [Line Items] | |
| 2023 | 0 |
| 2024 | 0 |
| 2025 | 0 |
| 2026 | 0 |
| 2027 | 0 |
| 2028 | 50,000,000 |
| Total debt principal | $ 50,000,000 |
Other liabilities - Liability Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Mar. 31, 2022 |
Feb. 23, 2022 |
Feb. 22, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|---|---|---|---|
| Other Liabilities [Abstract] | ||||||||
| Accrued expenses | $ 86 | $ 81 | ||||||
| Uncertain tax positions | 87 | 85 | ||||||
| Unfavorable contracts to be amortized | 77 | 6 | ||||||
| Employee withheld taxes, social security and vacation payments | 35 | 46 | ||||||
| Operating Lease, Liability | 36 | 35 | ||||||
| Contract liabilities | 30 | $ 22 | $ 19 | $ 19 | 35 | $ 31 | $ 28 | $ 31 |
| Taxes payable | 25 | 27 | ||||||
| Accrued interest expense | 5 | 0 | ||||||
| Other liabilities | 21 | 29 | ||||||
| Total other liabilities | $ 402 | $ 344 |
Other liabilities - Balance Sheet (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Other Liabilities [Abstract] | |||
| Other current liabilities | $ 241 | $ 230 | |
| Other non-current liabilities | 161 | $ 173 | 114 |
| Total other liabilities | $ 402 | $ 344 |
Other liabilities - Movement In Unfavorable Drilling Contracts (Details) - USD ($) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Feb. 23, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Movement in Unfavorable Drilling Contracts [Roll Forward] | ||||||||
| Carrying amount, beginning balance | $ 85 | $ 66 | $ 85 | $ 66 | $ 66 | $ 85 | $ 66 | $ 66 |
| Accumulated amortization, beginning balance | 3 | 60 | 8 | 59 | 59 | 0 | 60 | 59 |
| Net carrying amount, beginning balance | 82 | 6 | 77 | 7 | 7 | 85 | 6 | 7 |
| Amortization | (3) | 0 | (5) | 0 | 0 | |||
| Carrying amount, ending balance | 85 | 66 | 85 | 66 | 66 | 85 | 66 | 66 |
| Accumulated amortization, ending balance | 3 | 60 | 8 | 59 | 59 | 0 | 60 | 59 |
| Net carrying amount, ending balance | $ 82 | $ 6 | $ 77 | $ 7 | $ 7 | 85 | $ 6 | $ 7 |
| 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 | |||||||
Other liabilities - Future amortization of unfavorable contracts (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
|---|---|
| Payables and Accruals [Abstract] | |
| Remainder of 2022 | $ 7 |
| 2023 | 24 |
| 2024 | 24 |
| 2025 and thereafter | 22 |
| Total | $ 77 |
Leases - Narrative (Details) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2022
USD ($)
rig
| |
| Lessor, Lease, Description [Line Items] | |
| Number of benign environment jack-up rigs | rig | 3 |
| West Hercules | |
| Lessor, Lease, Description [Line Items] | |
| ROU asset adjustment | $ 8.6 |
| West Linus | |
| Lessor, Lease, Description [Line Items] | |
| ROU asset adjustment | $ 12.8 |
Leases - Operating Leases Future Undiscounted Cash Flows (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Operating leases, future minimum payments due, fiscal year maturity [Abstract] | ||
| Remainder of 2022 | $ 30 | |
| 2023 | 3 | |
| 2024 | 2 | |
| 2025 | 3 | |
| 2026 and thereafter | 1 | |
| Total undiscounted cash flows | $ 39 | $ 37 |
Leases - Balance Sheet (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Leases [Abstract] | ||
| Total undiscounted cash flows | $ 39 | $ 37 |
| Less discount | (3) | (2) |
| Operating lease liability | $ 36 | $ 35 |
| Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
| Current | $ 29 | $ 30 |
| Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
| Non-current | $ 7 | $ 5 |
Leases - Supplementary Information (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
|---|---|---|---|---|---|
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Operating lease cost | |||||
| Operating lease cost | $ 4 | $ 14 | $ 2 | $ 20 | $ 5 |
| Short-term lease cost | 1 | 1 | 0 | 2 | 0 |
| Total lease cost | 5 | 15 | 2 | 22 | 5 |
| Other information: | |||||
| Cash paid for amounts included in the measurement of lease liabilities- Operating Cash flows | 5 | 15 | 2 | 22 | 5 |
| Right-of-use assets obtained in exchange for operating lease liabilities during the period - Non-cash Investing items | $ 24 | $ 4 | $ 0 | $ 4 | $ 0 |
| Weighted-average remaining lease term in months | 22 months | 21 months | 12 months | 21 months | 12 months |
| Weighted-average discount rate | 9.00% | 9.00% | 29.00% | 9.00% | 29.00% |
Leases - Operating Subleases (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
|---|---|
| Operating lease payments receivable | |
| 2022 | $ 14 |
| 2023 | 28 |
| 2024 | 21 |
| 2025 and thereafter | 20 |
| Total | $ 83 |
Common shares (Details) - USD ($) |
2 Months Ended | ||
|---|---|---|---|
Feb. 23, 2022 |
Feb. 22, 2022 |
Feb. 22, 2022 |
|
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
| Beginning balance (in shares) | 49,999,998 | 100,384,435 | 100,384,435 |
| Cancellation of Predecessor equity (in shares) | (100,384,435) | ||
| Issuance of Successor common stock (in shares) | 49,999,998 | 49,999,998 | |
| Ending balance (in shares) | 49,999,998 | 49,999,998 | 49,999,998 |
| Par value, beginning balance (usd per share) | $ 0.10 | $ 0.10 | |
| Cancellation of Predecessor equity (usd per share) | 0.10 | ||
| Issuance of Successor common stock (usd per share) | $ 0.01 | ||
| Ending balance (usd per share) | $ 0.01 | ||
| Beginning balance | $ 10,038,444 | $ 10,038,444 | |
| Cancellation of Predecessor equity | $ 0 | (10,038,444) | |
| Issuance of Successor common stock | 0 | $ 500,000 | |
| Ending balance | $ 500,000 |
Accumulated other comprehensive (loss)/income (Details) - USD ($) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||
|---|---|---|---|---|---|---|
Feb. 23, 2022 |
Mar. 31, 2022 |
Feb. 22, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | $ (3,809) | $ (3,809) | $ (3,716) | $ 1,503 | $ (3,451) | $ (3,140) |
| Other comprehensive income | 0 | 3 | 0 | |||
| Other comprehensive income from continuing operations | 1 | |||||
| Other comprehensive loss from discontinued operations | (3) | |||||
| Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services | 16 | |||||
| Reset accumulated other comprehensive loss | 1 | |||||
| Ending balance | 1,499 | 1,503 | (3,809) | 1,470 | (3,740) | (3,451) |
| Accumulated other comprehensive loss | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | (1) | (1) | (15) | 0 | (26) | (26) |
| Other comprehensive income | 5 | |||||
| Ending balance | 0 | 0 | (1) | 3 | (21) | (26) |
| Actuarial gain relating to pension | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | (1) | (1) | (2) | 0 | (2) | (2) |
| Other comprehensive income | 0 | 3 | 0 | 0 | ||
| Other comprehensive income from continuing operations | 1 | |||||
| Other comprehensive loss from discontinued operations | 0 | |||||
| Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services | 0 | |||||
| Reset accumulated other comprehensive loss | 1 | |||||
| Ending balance | 0 | 0 | (1) | 3 | (2) | (2) |
| Share in unrealized loss from associated companies | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | 0 | 0 | (19) | 0 | (29) | (28) |
| Other comprehensive income | 0 | 0 | 5 | (1) | ||
| Other comprehensive income from continuing operations | 0 | |||||
| Other comprehensive loss from discontinued operations | (2) | |||||
| Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services | 21 | |||||
| Reset accumulated other comprehensive loss | 0 | |||||
| Ending balance | 0 | 0 | 0 | 0 | (24) | (29) |
| Change in debt component on Archer bond | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | 0 | 0 | 6 | 0 | 5 | 4 |
| Other comprehensive income | 0 | 0 | 0 | 1 | ||
| Other comprehensive income from continuing operations | 0 | |||||
| Other comprehensive loss from discontinued operations | (1) | |||||
| Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services | (5) | |||||
| Reset accumulated other comprehensive loss | 0 | |||||
| Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 5 | $ 5 |
Risk management and financial instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
May 11, 2018 |
Jun. 30, 2022 |
|
| Debt Instrument [Line Items] | ||
| Percentage of debt hedged by interest rate derivatives | 91.00% | |
| Interest rate cap | ||
| Debt Instrument [Line Items] | ||
| Purchase of derivative instrument | $ 68 | |
| Percentage of derivatives terminated | 81.00% | |
| Derivative notional amount | $ 834 | |
| Interest rate cap | Not hedged | ||
| Debt Instrument [Line Items] | ||
| Capped rate | 2.87% | 2.285% |
Related Party Disclosures - Narrative (Details) |
Jun. 30, 2022 |
Nov. 01, 2021 |
|---|---|---|
| NSNCo, PES | ||
| Related Party Transaction [Line Items] | ||
| Ownership interest (as percent) | 65.00% | |
| SeaMex Limited | ||
| Related Party Transaction [Line Items] | ||
| Ownership interest (as percent) | 100.00% | 50.00% |
| Seabras loans receivable | ||
| Related Party Transaction [Line Items] | ||
| Ownership interest (as percent) | 50.00% |
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, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
| Related Party Transaction [Line Items] | |||||
| Total related party operating revenues | $ 19 | $ 57 | $ 43 | $ 74 | $ 96 |
| Total related party operating expenses | (3) | 0 | (13) | 0 | (23) |
| Management fee revenues | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating revenues | 12 | 46 | 21 | 60 | 55 |
| Reimbursable revenues | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating revenues | 3 | 4 | 16 | 5 | 29 |
| Lease revenue | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating revenues | 4 | 7 | 6 | 9 | 12 |
| Related party expenses, leasing arrangements | West Bollsta lease | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating expenses | 0 | 0 | (11) | 0 | (21) |
| Related party expenses, leasing arrangements | West Hercules | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating expenses | (3) | 0 | 0 | 0 | 0 |
| Other related party operating expenses | |||||
| Related Party Transaction [Line Items] | |||||
| Total related party operating expenses | $ 0 | $ 0 | $ (2) | $ 0 | $ (2) |
Related party transactions - Related Party Receivable Balances (Details) - USD ($) $ in Millions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|
| Related Party Transaction [Line Items] | |||
| Allowance for expected credit losses | $ (1) | $ (1) | |
| Amounts due from related parties, net | 48 | $ 42 | 28 |
| Amounts due from related parties - non-current | 0 | 0 | |
| Related party loans and interest | |||
| Related Party Transaction [Line Items] | |||
| Total related parties receivables, gross | 0 | 9 | |
| Trading balances | |||
| Related Party Transaction [Line Items] | |||
| Total related parties receivables, gross | 49 | 20 | |
| Total related party receivables | 49 | 29 | |
| Less: CECL allowance | (1) | (1) | |
| Receivable net of CECL allowance | 48 | 28 | |
| Trading balances | Sonadrill | |||
| Related Party Transaction [Line Items] | |||
| Total related party receivables | 32 | 4 | |
| Trading balances | Gulfdrill | |||
| Related Party Transaction [Line Items] | |||
| Total related party receivables | 14 | 13 | |
| Trading balances | PES / SeaMex | |||
| Related Party Transaction [Line Items] | |||
| Total related party receivables | $ 3 | $ 12 | |
| Sponsor Minimum Liquidity Shortfall | SeaMex seller's credit and loans receivable | |||
| Related Party Transaction [Line Items] | |||
| Interest rate on related party receivable | 6.50% |
Related party transactions - Related Party Payable Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Related Party Transaction [Line Items] | |||
| Liabilities associated with assets held for sale - current | $ 0 | $ 948 | |
| Liabilities subject to compromise | 0 | $ 0 | 6,235 |
| Lease liability | 0 | 503 | |
| West Taurus lease liability | |||
| Related Party Transaction [Line Items] | |||
| Lease liability | 0 | 345 | |
| West Linus lease liability | |||
| Related Party Transaction [Line Items] | |||
| Lease liability | 0 | 158 | |
| Affiliated Entity | |||
| Related Party Transaction [Line Items] | |||
| Payables due to related parties | 0 | 503 | |
| Liabilities associated with assets held for sale - current | 0 | 0 | |
| Liabilities subject to compromise | 0 | 503 | |
| Related party loans payable | Affiliated Entity | |||
| Related Party Transaction [Line Items] | |||
| Payables due to related parties | $ 0 | $ 503 |
Commitments and contingencies - Guarantees in favor of third parties (Details) - USD ($) $ in Millions |
Oct. 31, 2023 |
Nov. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 28, 2019 |
|---|---|---|---|---|---|
| Guarantor Obligations [Line Items] | |||||
| Guarantor obligations, maximum exposure, undiscounted | $ 500 | $ 550 | |||
| Contract value deduction percentage | 2.00% | ||||
| Northern Ocean | |||||
| Guarantor Obligations [Line Items] | |||||
| Guarantor obligations, maximum exposure, undiscounted | 100 | 150 | |||
| Northern Ocean | Performance guarantee | |||||
| Guarantor Obligations [Line Items] | |||||
| Guarantor obligations, maximum exposure, undiscounted | 100 | 150 | |||
| Sonadrill | |||||
| Guarantor Obligations [Line Items] | |||||
| Guarantor obligations, maximum exposure, undiscounted | $ 400 | $ 400 | |||
| Sonadrill | Performance guarantee | Forecast | |||||
| Guarantor Obligations [Line Items] | |||||
| Guarantor obligations, maximum exposure, undiscounted | $ 350 | $ 50 |
Fair value of financial instruments - Carrying Value and Estimated Fair Value of our Financial Instrument (Details) - USD ($) $ in Millions |
Jun. 30, 2022 |
Feb. 23, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Liabilities subject to compromise | $ 0 | $ 0 | $ 6,235 |
| Level 2 | Fair value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Receivables from related parties | 0 | 9 | |
| Level 2 | Carrying value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Receivables from related parties | 0 | 9 | |
| Level 3 | Fair value | New first lien facility | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 181 | 0 | |
| Level 3 | Fair value | Second Lien Facility | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 734 | 0 | |
| Level 3 | Fair value | Unsecured convertible notes | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 37 | 0 | |
| Level 3 | Fair value | Related party loans payable | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Liabilities subject to compromise | 0 | 176 | |
| Level 3 | Fair value | Secured credit facilities | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Liabilities subject to compromise | 0 | 2,094 | |
| Level 3 | Carrying value | New first lien facility | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 184 | 0 | |
| Level 3 | Carrying value | Second Lien Facility | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 734 | 0 | |
| Level 3 | Carrying value | Unsecured convertible notes | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Payables due to related parties | 50 | 0 | |
| Level 3 | Carrying value | Related party loans payable | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Liabilities subject to compromise | 0 | 503 | |
| Level 3 | Carrying value | Secured credit facilities | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Liabilities subject to compromise | $ 0 | $ 5,662 |
Fair value of financial instruments - Additional Information (Details) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021
USD ($)
|
|---|---|---|
| West Taurus lease liability | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Related party loan, fair value | $ 250 | |
| Discount rate | Discounted cash flow | West Linus lease liability | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Related party loans payable, weighted average cost of capital | 0.10 | |
| Secured credit facilities | Discount rate | Discounted cash flow | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Debt instrument, measurement input | 0.170 | |
| Minimum | Secured credit facilities | Discount rate | Discounted cash flow | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Debt instrument, measurement input | 0.100 | |
| Maximum | Secured credit facilities | Discount rate | Discounted cash flow | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Debt instrument, measurement input | 0.130 |
Subsequent Events (Details) - Subsequent event $ in Millions |
Aug. 31, 2022
USD ($)
rig
|
|---|---|
| Subsequent Event [Line Items] | |
| Non-binding offer received for certain assets, number of jackup rigs involved | rig | 7 |
| Minimum | |
| Subsequent Event [Line Items] | |
| Non-binding offer received for certain assets, expected consideration if accepted | $ 645 |
| Maximum | |
| Subsequent Event [Line Items] | |
| Non-binding offer received for certain assets, expected consideration if accepted | $ 700 |
| Label | Element | Value |
|---|---|---|
| Disposal Group, Including Discontinued Operation, Assets | us-gaap_AssetsOfDisposalGroupIncludingDiscontinuedOperation | $ 64,000,000 |
| Disposal Group, Including Discontinued Operation, Assets | us-gaap_AssetsOfDisposalGroupIncludingDiscontinuedOperation | 69,000,000 |
| Disposal Group, Including Discontinued Operation, Assets | us-gaap_AssetsOfDisposalGroupIncludingDiscontinuedOperation | 0 |
| 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, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 723,000,000 |