SEADRILL LTD, 20-F filed on 3/27/2024
Annual and Transition Report (foreign private issuer)
v3.24.1
Cover page
 12 Months Ended
Dec. 31, 2023
shares
Document Information [Line Items]  
Document Type 20-F
Document Registration Statement false
Document Annual Report true
Document Period End Date Dec. 31, 2023
Current Fiscal Year End Date --12-31
Document Transition Report false
Document Shell Company Report false
Entity File Number 001-39327
Entity Registrant Name SEADRILL LIMITED
Entity Incorporation, State or Country Code D0
Entity Address, Address Line One 11025 Equity Dr.
Entity Address, Address Line Two Ste. 150
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77041
Entity Address, Country US
Title of 12(b) Security Common Shares, par value $0.01 per share
Trading Symbol SDRL
Security Exchange Name NYSE
Entity Common Stock, Shares Outstanding 73,705,343
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Emerging Growth Company false
ICFR Auditor Attestation Flag true
Document Financial Statement Error Correction [Flag] false
Document Accounting Standard U.S. GAAP
Entity Shell Company false
Entity Bankruptcy Proceedings, Reporting Current true
Entity Central Index Key 0001737706
Document Fiscal Year Focus 2023
Document Fiscal Period Focus FY
Amendment Flag false
Business Contact  
Document Information [Line Items]  
Entity Address, Address Line One 11025 Equity Dr.
Entity Address, Address Line Two Ste. 150
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77041
Entity Address, Country US
Contact Personnel Name Todd Strickler
City Area Code (713)
Local Phone Number 329 1150
Contact Personnel Email Address legal@seadrill.com
v3.24.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Firm ID 876
Auditor Location United Kingdom
v3.24.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Operating revenues        
Contract revenues $ 124 $ 574 $ 1,154 $ 663
Management contract revenue [1] 36 203 271 177
Total operating revenues 169 843 1,502 907
Operating expenses        
Depreciation (17) (135) (155) (127)
Management contract expenses (1) [1] (31) (148) (200) (174)
Merger and integration related expenses 0 (3) (24) 0
Selling, general and administrative expenses (6) (54) (74) (67)
Total operating expenses (134) (809) (1,187) (1,012)
Other operating items        
Loss on impairment of long-lived assets 0 0 0 (152)
Gain on disposals 2 1 14 47
Other operating income (1) [1] 0 0 0 54
Total other operating items 2 1 14 (51)
Operating profit/(loss) 37 35 329 (156)
Financial and other non-operating items        
Interest income 0 14 35 1
Interest expense (7) (98) (59) (109)
Share in results from associated companies (net of tax) (2) (2) 37 3
Reorganization items, net 3,683 (15) 0 (296)
Other financial and non-operating items 30 3 (25) (15)
Total financial and other non-operating items, net 3,704 (98) (12) (416)
Profit/(loss) before income taxes 3,741 (63) 317 (572)
Income tax expense (2) (10) (17) 0
Net loss from continuing operations 3,739 (73) 300 (572)
Net income/(loss) after tax from discontinued operations (33) 274 0 (15)
Net income/(loss) $ 3,706 $ 201 $ 300 $ (587)
Basic loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ 4.23 $ (5.70)
Diluted loss per share from continuing operations (USD per share) 37.25 (1.46) 4.12 (5.70)
Basic loss per share (usd per share) 36.92 4.02 4.23 (5.85)
Diluted loss per share (usd per share) $ 36.92 $ 3.88 $ 4.12 $ (5.85)
Reimbursable revenues        
Operating revenues        
Reimbursable revenues $ 4 $ 27 $ 32 $ 35
Operating expenses        
Vessel and rig operating expenses (4) (24) (29) (32)
Other        
Operating revenues        
Reimbursable revenues [1] 5 39 45 32
Vessel and rig operating expenses (1)        
Operating expenses        
Vessel and rig operating expenses [1] $ (76) $ (445) $ (705) $ (612)
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Total operating revenues $ 169 $ 843 $ 1,502 $ 907
Management contract expense [1] 31 148 200 174
Related Party        
Total operating revenues 19 216 298 189
Management contract expense $ 3 $ 0 $ 0 $ 70
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]        
Net income/(loss) $ 3,706 $ 201 $ 300 $ (587)
Other comprehensive (loss)/income, net of tax, relating to continuing operations:        
Actuarial (loss)/gain relating to pensions 1 2 (1) 0
Other comprehensive income/(loss), net of tax, relating to discontinued operations:        
Recycling of accumulated other comprehensive loss on sale of Paratus Energy Services 16 0 0 0
Change in fair value of debt component of Archer convertible bond (1) 0 0 2
Share of other comprehensive loss from associated companies (2) 0 0 9
Total other comprehensive (loss)/income 14 2 (1) 11
Total comprehensive income/(loss) for the period $ 3,720 $ 203 $ 299 $ (576)
v3.24.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 697,000 $ 480,000
Restricted cash 31,000 44,000
Accounts receivable, net 222,000 137,000
Other current assets 199,000 169,000
Total current assets 1,158,000 857,000
Non-current assets    
Investments in associated companies 90,000 84,000
Drilling units 2,858,000 1,668,000
Restricted cash 0 74,000
Deferred tax assets 46,000 15,000
Equipment 10,000 10,000
Other non-current assets 56,000 93,000
Total non-current assets 3,060,000 1,944,000
Total assets 4,218,000 2,801,000
Current liabilities    
Debt due within one year 0 22,000
Trade accounts payable 53,000 76,000
Other current liabilities 336,000 306,000
Total current liabilities 389,000 404,000
Non-current liabilities    
Long-term debt 608,000 496,000
Deferred tax liabilities 9,000 9,000
Other non-current liabilities 229,000 190,000
Total non-current liabilities 846,000 695,000
Commitments and contingencies (Note 29)
SHAREHOLDERS' EQUITY    
Common shares of par value US$0.01 per share: 375,000,000 shares authorized and 74,048,962 issued at December 31, 2023 (December 31, 2022: 49,999,998) 741 500
Additional paid-in capital 2,480,000 1,499,000
Accumulated other comprehensive income 1,000 2,000
Retained earnings 501,000 201,000
Total shareholders' equity 2,983,000 1,702,000
Total liabilities and shareholders' equity 4,218,000 2,801,000
Related Party    
Current assets    
Amount due from related parties, net $ 9,000 $ 27,000
v3.24.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common shares, par value (in usd per share) $ 0.01 $ 0.01
Common shares, authorized (in shares) 375,000,000 375,000,000
Common shares, issued (in shares) 74,048,962 49,999,998
v3.24.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Cash Flows from Operating Activities        
Net income/(loss) $ 3,706 $ 201 $ 300 $ (587)
Net loss from continuing operations 3,739 (73) 300 (572)
Net income/(loss) after tax from discontinued operations (33) 274 0 (15)
Adjustments related to discontinued operations [1] 38 (262) 0 10
Adjustments to reconcile net loss to net cash used in operating activities:        
Change in allowance for credit losses (1) 1 (1) 34
Depreciation and amortization 17 135 155 127
Loss on impairment of long-lived assets 0 0 0 152
Gain on disposals (2) (1) (14) (47)
Amortization of debt issuance costs and discount on debt 7 0 2 84
Payment in kind interest 0 30 0 0
Share in results from associated companies (net of tax) 2 2 (37) (3)
Non-cash reorganization items, net (3,487) 0 0 176
Fresh Start valuation adjustments (266) 0 0 0
Deferred tax benefit (4) (3) (13) (3)
Other (7) (7) 9 2
Other cash movements in operating activities:        
Payments for long-term maintenance (2) (83) (108) (55)
Repayments made under lease arrangements (11) 0 0 (46)
Changes in operating assets and liabilities, net of effect of acquisitions and disposals:        
Trade accounts receivable (11) 32 (25) (41)
Trade accounts payable 0 23 (34) 15
Prepaid expenses/accrued revenue 0 9 (1) (4)
Deferred revenue (18) 44 1 7
Deferred mobilization costs (4) (111) 25 0
Related party receivables (13) (10) 19 (6)
Related party payables 0 0 0 (7)
Other assets (4) 49 (22) (21)
Other liabilities 4 16 31 59
Net cash provided by/(used in) operating activities (56) 65 287 (154)
Cash Flows from Investing Activities        
Additions to drilling units and equipment (18) (131) (101) (29)
Proceeds from sales of tender-assist units 0 0 84 0
Proceeds from disposal of assets 2 1 14 43
Net proceeds on disposal of business and cash impact from deconsolidation (94) 659 21 0
Acquisition of Subsidiary 0 0 24 0
Funds advanced to discontinued operations (20) (16) 0 0
Net cash (used in)/provided by investing activities - discontinued operations 0 (40) 0 23
Net cash provided by/(used in) investing activities (130) 473 42 37
Cash Flows from Financing Activities        
Proceeds from debt 175 0 576 0
Proceeds from convertible bond issuance 50 0 0 0
Repayments of secured credit facilities (160) (464) (478) 0
Share issuance costs 0 0 (4) 0
Debt issuance costs 0 0 (31) 0
Share repurchases 0 0 (263) 0
Net cash provided by financing activities - discontinued operations 20 16 0 0
Net cash (used in)/provided by financing activities 85 (448) (200) 0
Effect of exchange rate changes on cash and cash equivalents 6 (1) 1 (2)
Net increase/(decrease) in cash and cash equivalents, including restricted cash (95) 89 130 (119)
Cash and cash equivalents, including restricted cash 509 598 728 604
Cash and cash equivalents, including restricted cash, continuing operations [2] 490 598 728 516
Cash and cash equivalents, including restricted cash, discontinued operations 19 0 0 88
Supplementary disclosure of cash flow information        
Interest paid 0 (57) (36) 0
Net taxes paid (1) (5) (24) (3)
Reorganization items, net paid $ (56) $ (13) $ 0 $ (100)
[1] Relates to adjustments made to the net income/loss from discontinued operations to reconcile to net cash flows in operating activities from discontinued operations. The adjustments reconcile net income/(loss) from discontinued operations to net cash provided by/(used in) operating activities, other cash movements in operating activities, and changes in operating assets and liabilities, net of effect of acquisitions and disposals. The net cash provided by operating activities for the year ended December 31, 2023 was nil, for the successor period from February 23, 2022 through December 31, 2022 was $12 million and for the predecessor period from January 1, 2022 through February 22, 2022 was $5 million. (December 31, 2021: $5 million used in).
[2] Comprised of cash and cash equivalents as of December 31, 2023 (Successor) $697 million (2022: $480 million, 2021: $293 million), restricted cash $31 million (2022: $44 million, 2021: $160 million), and restricted cash included in non-current assets: nil (2022: $74 million, 2021: $63 million).
v3.24.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 23, 2022
Statement of Cash Flows [Abstract]          
Net cash used in operating activities related to Discontinued operations $ (5) $ (12) $ 0 $ 5  
Cash and cash equivalents   480 697 293 $ 336
Current restricted cash   44 31 160 85
Restricted cash   $ 74 $ 0 $ 63 $ 69
v3.24.1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Predecessor
Common shares
Common shares
Predecessor
Additional paid in capital
Additional paid in capital
Predecessor
Accumulated other comprehensive income/(loss)
Accumulated other comprehensive income/(loss)
Predecessor
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020     0 10,000,000          
Beginning balance at Dec. 31, 2020 $ (3,140,000)       $ 0 $ 3,504,000 $ (26,000)   $ (6,628,000)
Net income (587,000)                
Net loss from continuing operations (572,000)               (572,000)
Net income/(loss) after tax from discontinued operations (15,000)               (15,000)
Other comprehensive loss from discontinued operations $ 11,000           11,000    
Ending balance (in shares) at Dec. 31, 2021 100,384,435   0 10,000,000          
Ending balance at Dec. 31, 2021 $ (3,716,000)       0 3,504,000 (15,000)   (7,215,000)
Net income 3,706,000                
Other comprehensive loss from continuing operations 1,000           1,000    
Recycling of PES AOCI on deconsolidation 16,000           16,000    
Net loss from continuing operations 3,739,000               3,739,000
Net income/(loss) after tax from discontinued operations (33,000)               (33,000)
Other comprehensive loss from discontinued operations $ (3,000)           (3,000)    
Stock issued during period (in shares) 49,999,998                
Issuance of Successor common stock $ 1,495,000     $ 500 1,499,000       (4,000)
Cancellation of predecessor equity (in shares) (100,384,435)     (10,000,000)          
Cancellation of Predecessor equity $ 0     $ (10,038)   (3,504,000) 1,000   3,513,000
Ending balance (in shares) at Feb. 22, 2022 49,999,998   0 0          
Ending balance at Feb. 22, 2022 $ 1,499,000 $ (3,809,000)     1,499,000 0 0 $ (1,000) 0
Stock issued during period (in shares) 49,999,998                
Ending balance (in shares) at Feb. 23, 2022 49,999,998   0 0          
Ending balance at Feb. 23, 2022 $ 1,499,000       1,499,000 0 0   0
Beginning balance (in shares) at Feb. 22, 2022 49,999,998   0 0          
Beginning balance at Feb. 22, 2022 $ 1,499,000 $ (3,809,000)     1,499,000 0 0 $ (1,000) 0
Net income 201,000                
Other comprehensive loss from continuing operations 2,000           2,000    
Net loss from continuing operations (73,000)               (73,000)
Net income/(loss) after tax from discontinued operations $ 274,000               274,000
Ending balance (in shares) at Dec. 31, 2022 49,999,998   0 0          
Ending balance at Dec. 31, 2022 $ 1,702,000       1,499,000 0 2,000   201,000
Net income 300,000               300,000
Shares issued on closing of Aquadrill acquisition 1,244,000   $ 1,000   1,243,000        
Net loss from continuing operations 300,000                
Net income/(loss) after tax from discontinued operations 0                
Share issuance costs (4,000)       (4,000)        
Share repurchased and cancelled (267,000)   $ (58)   (267,000)        
Other comprehensive loss (1,000)           (1,000)    
Share-based compensation charge $ 9,000       9,000        
Ending balance (in shares) at Dec. 31, 2023 74,048,962   1,000,000 0          
Ending balance at Dec. 31, 2023 $ 2,983,000       $ 2,480,000 $ 0 $ 1,000   $ 501,000
v3.24.1
General information
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General information General information
Seadrill Limited is incorporated in Bermuda. We are an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry. Our primary business is the ownership and operation of drillships, semi-submersible rigs and jackup rigs for operations in shallow to ultra-deepwater in both benign and harsh environments. We contract our drilling units to drill wells for our customers on a dayrate basis. Our customers include oil super-majors, state-owned national oil companies and independent oil and gas companies. In addition, we provide management services to certain affiliated entities. As of December 31, 2023, we owned a total of 19 drilling rigs, of which three were leased to the Gulfdrill LLC ("Gulfdrill") joint venture, one was leased to the Sonadrill joint venture, three were cold stacked and one was warm stacked. In addition to our owned assets, as of December 31, 2023, we managed two rigs owned by Sonangol.
As used herein, the term "Predecessor" refers to the financial position and results of operations of Seadrill Limited prior to, and including, February 22, 2022. This is also applicable to terms "we", "our", "Group" or "Company" in the context of events on and prior to February 22, 2022. As used herein, the term "Successor" refers to the financial position and results of operations of Seadrill Limited (previously Seadrill 2021 Limited) after February 22, 2022 (the "Effective Date"). This is also applicable to terms "new Successor", "we", "our", "Group" or "Company" in the context of events after February 22, 2022 (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.
Basis of presentation
The Consolidated Financial Statements comply with generally accepted accounting principles in the United States of America ("US GAAP") and are presented in U.S. dollars ("US dollar", "$" or "US$") rounded to the nearest million, unless stated otherwise. They include the financial statements of Seadrill Limited and its consolidated subsidiaries.
In January 2022, we disposed of 65% of our equity interest in Paratus Energy Services Ltd ("PES") and in October 2022, we disposed of seven jackup units with contract in the Kingdom of Saudi Arabia (the "KSA Business"). Both transactions represented strategic shifts in Seadrill's operations which were deemed to have a major effect on its operations and financial results in 2022 and going forward and therefore both were reclassified as discontinued operations. As such, their results were reported separately in comparative periods.
Following the sale of the KSA Business, our organizational structure was simplified, consolidating our operations into a single segment. In light of this change, the information provided to the Chief Operating Decision Maker ("CODM") has been adapted to reflect the updated operational structure during the year ended December 31, 2023. As a result, we have updated the reportable segments disclosed externally from Harsh Environment Floaters, and Jackups to a single operating segment. This has been reflected for all periods covered by the report.
The financial information presented assumes we will continue as a going concern, able to realize our assets and discharge liabilities in the normal course of business as they come due.
Basis of consolidation
We consolidate companies where we control over 50% of voting rights, and entities where we hold a variable interest and are the primary beneficiary. A variable interest entity ("VIE") is a legal entity where equity at risk is not enough to finance its activities, or equity interest holders lack power to direct activities or receive expected returns. We are the primary beneficiary of a VIE when we have the power to direct activities that impact economic performance and the right to receive benefits or absorb losses. We exclude subsidiaries, even if fully owned, if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated.
Acquisition of Aquadrill LLC
On April 3, 2023 (the "Closing Date"), Seadrill completed the acquisition of Aquadrill LLC ("Aquadrill"), an offshore drilling rig owner. Pursuant to the Agreement and Plan of Merger (the "Merger Agreement") dated December 22, 2022, by and among Seadrill, Aquadrill (formerly Seadrill Partners LLC) and Seadrill Merger Sub, LLC, a Marshall Islands limited liability company ("Merger Sub"), Merger Sub merged with and into Aquadrill, with Aquadrill surviving the merger as a wholly owned subsidiary of Seadrill (the "Merger"). In connection with the Merger, and pursuant to the Merger Agreement, Seadrill exchanged consideration consisting of (i) 29.9 million Seadrill common shares, (ii) $30 million settled by tax withholding in lieu of common shares, and (iii) cash consideration of $1 million.
Through the acquisition of Aquadrill in April 2023, we added four drillships, one semi-submersible, and three tender-assist units to our fleet. Refer to Note 31 – "Business combinations" for further detail. The three tender-assist units were sold on July 28, 2023.
Emergence from Chapter 11 proceedings
On February 22, 2022, 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 4 – "Chapter 11" for further details.
Fresh start accounting
Seadrill qualified for fresh start accounting following its emergence from bankruptcy on the Effective Date, in accordance with the provisions set forth in ASC 852. This resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
Under fresh start accounting, Seadrill allocated the court approved reorganization value to its individual assets based on their estimated fair values on the Effective Date. Reorganization value represents the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Seadrill will continue to present financial information for any periods before the adoption of fresh start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as required by ASC Topic 205, Presentation of Financial Statements. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor Companies.
Refer to Note 5 – "Fresh Start Accounting" for further details.
v3.24.1
Accounting policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Accounting policies Accounting policies
The accounting policies set out below have been applied consistently to all periods in these Consolidated Financial Statements, unless otherwise noted.
Revenue from contracts with customers
The activities that primarily drive the revenue earned from our drilling contracts include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities or modifications required for the contract with a customer. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services as a single performance obligation that is (i) satisfied over time and (ii) comprised of a series of distinct time increments of service.
We recognize revenues for activities that correspond to a distinct time increment of service within the contract term in the period when the services are performed. We recognize consideration for activities that are (i) not distinct within the context of our contracts and (ii) do not correspond to a distinct time increment of service, ratably over the estimated contract term.
We determine the total transaction price for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. The amount estimated for variable consideration may be constrained and is only included in the transaction price to the extent that it is probable that a significant reversal of previously recognized revenue will not occur throughout the term of the contract. When determining if variable consideration should be constrained, we consider whether there are factors outside of our control that could result in a significant reversal of revenue as well as the likelihood and magnitude of a potential reversal of revenue. We re-assess these estimates each reporting period as required. For further information please refer to Note 8 – "Revenue from contracts with customers".
Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly incremental service it relates to. Revenue is recognized in line with the contractual rate billed for the services provided for any given hour.
We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization of our rigs. These activities are not considered to be distinct within the context of the contract. The associated revenue is allocated to the overall performance obligation and recognized ratably over the expected term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to contract drilling revenue as services are rendered over the initial term of the related drilling contract.
We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the demobilization of our rigs. Demobilization revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized over the term of the contract. In most of our contracts, there is uncertainty as to the likelihood and amount of expected demobilization revenue to be received. For example, the amount may vary dependent upon whether or not the rig has additional contracted work following the contract. Therefore, the estimate for such revenue may be constrained, as described above, depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on past experience and knowledge of the market conditions.
We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer, at a point in time, as "Reimbursable revenues" in our Consolidated Statements of Operations.
In some countries, the local government or taxing authority may assess taxes on our revenues. Such taxes may include sales taxes, use taxes, value-added taxes, gross receipts taxes and excise taxes. We generally record tax-assessed revenue transactions on a net basis.
Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of contracted rigs represent costs of fulfilling a contract as they relate directly to a contract, enhance resources that will be used in satisfying our performance obligations in the future and are expected to be recovered. Such costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract.
Any costs incurred for delays in commencement of drilling contracts are treated as variable consideration that is allocated to the firm term of the drilling contract.
Arrangements with MSA Managers
On completion of the Aquadrill acquisition on the Closing Date, Seadrill assumed arrangements related to the management of the former Aquadrill rigs. These existing arrangements were with offshore drilling contractors including affiliates of Diamond Offshore Drilling, Inc., Vantage Drilling International, and Energy Drilling Management Pte Ltd. (collectively, the "MSA Managers"), governed by master service or similar agreements ("MSAs").
Under the MSAs, certain former Aquadrill rigs are chartered to an MSA Manager who then contracts with a third-party customer to provide drilling services, providing all necessary crew and other required services and supplies needed to provide those services. The charter arrangements are structured such that all revenues from the end customer and all contract expenses are passed through to Seadrill. The MSA Manager also charges a fee for the services provided. While this fee is variable to align contract objectives between us and the Manager, the majority of economic risk and reward over the arrangement resides with Seadrill.
For accounting purposes, we consider each arrangement as a single unified contract between Seadrill and the end customer with the MSA Manager acting as both a lease broker and subcontractor in providing services to the end customer. Similar to arrangements where Seadrill provides drilling services directly to an end-customer using its owned rigs, the arrangement has both lease and non-lease components. We apply the practical expedient per ASC 842-10-15-42 which permits us to account for the arrangement based on the predominant component in the arrangement, which we consider to be the non-lease component.
Accordingly, we account for these arrangements under the guidance of ASC 606 – Revenue from Contracts with Customers. We recognize all revenues from the end-customers and all operating expenditures incurred by the MSA Manager and passed back to us, together with all MSA Manager fees, as operating expenses. In addition, where the MSA Manager incurs capital or long-term-maintenance expenditures on the units, these costs are also passed to us and accounted for as drilling unit additions. More generally, the accounting for revenue and expenses related to these arrangements follows our accounting policies.
Management contract revenues
Seadrill has provided management and operational support services to Sonadrill, SeaMex, and in the Predecessor period, Northern Ocean and Aquadrill. These services are typically charged on either a cost-plus or dayrate basis. In addition, Seadrill has recorded reimbursable revenues on certain project work conducted on behalf of such parties.
Other revenues
Other revenues comprise charter income from rigs leased to Gulfdrill and Sonadrill, revenue from the sale of inventories, and termination fees earned when drilling contracts are terminated before the contract end date. Termination fees are recognized daily as any contingencies or uncertainties are resolved.
Vessel and Rig Operating Expenses
Vessel and rig operating expenses are costs associated with operating a drilling unit that is either in operation or stacked and include the remuneration of offshore crews and related costs, rig supplies, insurance costs, expenses for repairs and maintenance and costs for onshore support personnel. We expense such costs as incurred.
Mobilization and demobilization expenses
We incur costs to prepare a drilling unit for a new customer contract and to move the rig to a new contract location. We capitalize the mobilization and preparation costs for a rig's first contract as a part of the rig value and recognize these costs as depreciation expense over the expected useful life of the rig (i.e. 30 years). For subsequent contracts, we defer these costs over the expected contract term (see deferred contract costs above), unless we do not expect the costs to be recoverable, in which case we expense them as incurred.
We incur costs to transfer a drilling unit to a safe harbor or different geographic area at the end of a contract. We expense such demobilization costs as incurred. We also expense any costs incurred to relocate drilling units that are not under contract. 
Repairs, maintenance and periodic surveys
Costs related to periodic overhauls of drilling units are capitalized and amortized over the anticipated period between overhauls, which is generally five years. Related costs are primarily shipyard costs and the cost of employees directly involved in the work. We include amortization costs for periodic overhauls in depreciation expense. Costs for other repair and maintenance activities are included in vessel and rig operating expenses and are expensed as incurred.
Income taxes
Seadrill is a Bermuda company that has subsidiaries and affiliates in various jurisdictions. As of December 31, 2023, Seadrill and our Bermudan subsidiaries and affiliates are not required to pay taxes in Bermuda on ordinary income or capital gains as they qualify as exempted companies. Certain subsidiaries operate in other jurisdictions where taxes are imposed. Consequently, income taxes have been recorded in these jurisdictions when appropriate. Our income tax expense is based on our income and statutory tax rates in the various jurisdictions in which we operate. We provide for income taxes based on the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Refer to Note 13 – "Taxation".
The determination and evaluation of our annual group income tax provision involves interpretation of tax laws in various jurisdictions in which we operate and requires significant judgment and use of estimates and assumptions regarding significant future events, such as amounts, timing and character of income, deductions and tax credits. There are certain transactions for which the ultimate tax determination is unclear due to uncertainty in relation to the interpretation of tax law that arises in the ordinary course of business.
We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit by relevant tax authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While we believe we have appropriate support for the positions taken on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes.
Income tax expense consists of taxes currently payable and changes in deferred tax assets and liabilities calculated according to local tax rules. We recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the Consolidated Statement of
Operations as income tax expense (or benefit) in the period of sale or transfer occurs.
Current income tax expense reflects an estimate of our income tax liability for the current year, withholding taxes, changes in prior year tax estimates as tax returns are filed, or from tax audit adjustments.
Deferred tax assets and liabilities are based on temporary differences that arise between carrying values used for financial reporting purposes and amounts used for taxation purposes of assets and liabilities and the future tax benefits of tax loss carry forwards.
Our deferred tax expense or benefit represents the change in the balance of deferred tax assets or liabilities as reflected on the balance sheet. Valuation allowances are determined to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To determine the amount of deferred tax assets and liabilities, as well as the valuation allowances, we must make estimates and certain assumptions regarding future taxable income, including where our drilling units are expected to be deployed, as well as other assumptions related to our future tax position. A change in such estimates and assumptions, along with any changes in tax laws, could require us to adjust the deferred tax assets, liabilities, or valuation allowances. The amount of deferred tax provided is based upon the expected manner of settlement of the carrying amount of assets and liabilities, using tax rates enacted at the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted.
Foreign currencies
The majority of our revenues and expenses are denominated in U.S. dollars and therefore the majority of our subsidiaries use U.S. dollars as their functional currency. Our reporting currency is also U.S. dollars. For subsidiaries with functional currencies other than U.S. dollars, we use the current method of translation whereby items of income and expense are translated using the average exchange rate for the period and the assets and liabilities are translated using the year-end exchange rate. Foreign currency translation gains or losses on consolidation are recorded as a separate component of other comprehensive income in shareholders' equity.
Transactions in foreign currencies are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency denominated monetary assets and liabilities are remeasured using rates of exchange at the balance sheet date. Gains and losses on foreign currency transactions are included within "Other financial and non-operating items" in the Consolidated Statements of Operations.
Earnings/(loss) per share
Basic earnings/(loss) per share ("EPS/LPS") is calculated based on the income or loss for the period available to common shareholders divided by the weighted average number of Shares outstanding. Diluted income or loss per share includes the effect of the assumed conversion of potentially dilutive instruments such as our restricted stock units, performance stock units and convertible bond. The determination of dilutive income or loss per share may require us to make adjustments to net income or loss and the weighted average Shares outstanding. Refer to Note 14 – "Earnings/(loss) per share".
Fair value measurements
We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Hierarchy Level 2 inputs are significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets. Hierarchy Level 3 inputs are significant unobservable inputs, including those that require considerable judgment for which there is little or no market data. When a valuation requires multiple input levels, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.
Current and non-current classification
Generally, assets and liabilities (excluding deferred taxes and liabilities subject to compromise) are classified as current assets and liabilities respectively if their maturity is within one year of the balance sheet date. In addition, we classify any derivative financial instruments as current. Current liabilities will include where amounts from lenders are payable on demand at their discretion due to event of default clauses being met.
Generally, assets and liabilities are classified as non-current assets and liabilities respectively if their maturity is beyond one year of the balance sheet date. In addition, we classify loan fees based on the classification of the associated debt principal.
Cash and cash equivalents and restricted cash
Cash and cash equivalents consist of cash, bank deposits and highly liquid financial instruments with maturities of three months or less. Amounts are presented net of allowances for credit losses.
Restricted cash consists of bank deposits which are subject to restrictions due to legislation, regulation or contractual arrangements. Restricted cash amounts that are expected to be used after one year from the balance sheet date are classified as non-current assets. Amounts are presented net of allowances for credit losses, which are assessed based on consideration of maturity date and the counterparty's credit rating. Refer to Note 15 – "Restricted cash".
Receivables
Receivables, including accounts receivable, are recorded in the balance sheet at their nominal amount net of expected credit losses and write-offs. Interest income on receivables is recognized as earned.
Allowance for credit losses
The current expected credit loss ("CECL") model requires recognition of expected credit losses over the life of a financial asset upon its
initial recognition. Periods prior to adoption are presented under the previous guidance with an allowance against a receivable balance recognized only if it was probable that we would not recover the full amount due to us. We determined doubtful accounts on a case-by-case basis and considered the financial condition of the customer as well as specific circumstances related to the receivable such as customer disputes.
The CECL model contemplates a broader range of information to estimate expected credit losses over the contractual lifetime of an asset. It also requires consideration of the risk of loss even if it is remote. We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts of events which may affect the collectability. We estimate the CECL allowance using a "probability-of-default" model, calculated by multiplying the exposure at default by the probability of default by the loss given default by a risk overlay multiplier over the life of the financial instrument (as defined by ASU 2016-13). Our critical judgements relate to internal credit ratings and maturities used to determine probability of default, the subordination of debt to determine loss given default and the performance status of the receivable that can impact any management overlay. We determine management risk overlay based on management assessment of defaults, overdue amounts and other observable events that provide information on collection. Our internal credit ratings are based on the Moody’s scorecard approach (based on several quantitative and qualitative factors) and our approach relies on statistical data from Moody’s ‘Default and Ratings Analytics’ to derive the expected credit loss. We monitor the credit quality of receivables by re-assessing credit ratings, assumed maturities and probability-of-default on a quarterly basis. Due to the inherent uncertainty around these judgmental areas, it is at least reasonably possible that a material change in the CECL allowance can occur in the near term. We grouped financial assets with similar risk characteristics based on their contractual terms, historical credit loss pattern, internal and external credit ratings, maturity, collateral type, past due status and other relevant factors.
The CECL model applies to external trade receivables, related party receivables and other financial assets measured at amortized cost as well as to off-balance sheet credit exposures not accounted for as insurance. We have elected to calculate expected credit losses on the combined balance of both the amortized cost and accrued interest from the unpaid principal balance.
The allowance for credit losses reflects the net amount expected to be collected on the financial asset. Any change in credit allowance is reflected in the Consolidated Statement of Operations based on the nature of the financial asset receivable.
Amounts are written off against the allowance in the period when efforts to collect a balance have been exhausted. Any write-offs in excess of credit allowance by category of financial asset reduces the asset's carrying amount and is reflected in the Consolidated Statement of Operations. Expected recoveries will not exceed the amounts previously written-off or current credit loss allowance by financial asset category and are recognized in the Consolidated Statement of Operations in the period of receipt.
Contract assets and liabilities
Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. If we recognize revenue ahead of this point, we also recognize a contract asset. Contract assets balances relate primarily to demobilization revenues recognized during the period associated with probable future demobilization activities.
Contract liabilities include payments received for mobilization, rig preparation and upgrade activities which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract.
Related parties
Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence. 10% shareholders that do not have significant influence are also considered to be related parties. Amounts receivable from related parties are presented net of allowances for expected credit losses and write-offs. Interest income on receivables is recognized as earned. Refer to Note 26 –"Related party transactions" for details of balances and material transactions with related parties.
Equity investments
Investments in common stock are accounted for using the equity method if we have the ability to significantly influence, but not control, the investee. Significant influence is presumed to exist if our ownership interest in the voting stock of the investee is between 20% and 50%. We also consider other factors such as representation on the investee’s board of directors and the nature of commercial arrangements, We classify our equity investees as "Investments in Associated Companies" on the Consolidated Balance Sheets. We recognize our share of earnings or losses from our equity method investments in the Consolidated Statements of Operations as "Share in results from associated companies". Refer to Note 17 – "Investment in associated companies".
We assess our equity method investments for impairment at each reporting period when events or circumstances suggest that the carrying amount of the investments may be impaired. We record an impairment charge for other-than-temporary declines in value when the value is not anticipated to recover above the cost within a reasonable period after the measurement date. We consider (1) the length of time and extent to which fair value is below carrying value, (2) the financial condition and near-term prospects of the investee, and (3) our intent and ability to hold the investment until any anticipated recovery. If an impairment loss is recognized, subsequent recoveries in value are not reflected in earnings until sale of the equity method investee occurs.
All other equity investments including investments that do not give us the ability to exercise significant influence and investments in equity instruments other than common stock, are accounted for at fair value, if readily determinable. We classify our other equity investments as "marketable securities" with gains or losses on remeasurement to fair value recognized within "Other financial and non-operating items" in the Consolidated Statements of Operations. If we cannot readily ascertain the fair value, we record the investment at cost less impairment. We perform a qualitative impairment analysis for our equity investments recorded at cost at each reporting period to evaluate whether an event or change in circumstances has occurred that indicates that the investment is impaired. We record an impairment loss to the extent that the carrying amount of the investment exceeds its estimated fair value.
Held For Sale and Discontinued Operations
Assets are classified as held for sale when all of the following criteria are met: management commits to a plan to sell the asset (disposal group), the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets, an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated, the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. The term probable refers to a future sale that is likely to occur, the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell.
Management assesses whether an operation should be reported as discontinued operations under the three criteria set out in ASC 205:1) a discontinued operation may include a component of the business or group of components of the business, 2) if the disposal represents a strategic shift that has (or will have) a major effect on an the business's operations and financial results, and 3) examples of a strategic shift that has (or will have) a major effect on an the business's operations and financial results could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of the business. When an operation meets these criteria, the results of that operation are reported as "discontinued operations" in the statement of operations and all comparative periods of the consolidated financial statements and associated notes are recast for this classification. Refer to Note 30 – "Discontinued Operations".
Drilling units
Rigs, vessels and related equipment are recorded at historical cost less accumulated depreciation. The cost of these assets, less estimated residual value is depreciated on a straight-line basis over their estimated remaining economic useful lives. Rig upgrade costs incurred that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rigs. The estimated economic useful life of our floaters and jackup rigs, when new, is 30 years.
Drilling units acquired in a business combination are measured at fair value at the date of acquisition. Cost of property and equipment sold or retired, with the related accumulated depreciation and impairment is removed from the Consolidated Balance Sheet, and resulting gains or losses are included in the Consolidated Statement of Operations.
We re-assess the remaining useful lives of our drilling units when events occur which may impact our assessment of their remaining useful lives. These include changes in the operating condition or functional capability of our rigs, technological advances, changes in market and economic conditions as well as changes in laws or regulations affecting the drilling industry.
Equipment
Equipment is recorded at historical cost less accumulated depreciation and impairment and is depreciated over its estimated remaining useful life. The estimated economic useful life of equipment, when new, is between three and five years depending on the type of asset. Refer to Note 19 – "Equipment".
Rig reactivation project costs
Most reactivation costs are capitalized. The incremental cost of equipment de-preservation 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 administrative and overhead costs related to reactivation projects are accounted for as operating expenses.
Rig upgrade costs incurred as part of reactivation projects that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rig. Costs incurred as part of reactivation projects 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 contract period.
The cost of reactivation project related long-term maintenance activities such as major classification surveys and other major certifications are capitalized and depreciated over a period of between two and five years (depending on the period covered by the re-certification).
Leases
Lessee - When we enter into a new contract, or modify an existing contract, we identify whether that contract has a finance or operating lease component. We do not have any leases classified as finance leases. We determine the lease commencement date by reference to the date the rig (or other leased asset) is available for use and transfer of control has occurred from the lessor. At the lease commencement date, we measure and recognize a lease liability and a right of use ("ROU") asset in the financial statements. The lease liability is measured at the present value of the lease payments not yet paid, discounted using the estimated incremental borrowing rate at lease commencement. The ROU asset is measured at the initial measurement of the lease liability, plus any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred by us.
After the commencement date, we adjust the carrying amount of the lease liability by the amount of payments made in the period as well as the unwinding of the discount over the lease term using the effective interest method. After commencement date, we amortize the ROU asset by the amount required to keep total lease expense including interest constant (straight-line over the lease term).
Seadrill assesses ROU assets for impairment and recognizes any impairment loss in accordance with the accounting policy on impairment of long-lived assets.
We applied the following significant assumptions and judgments in accounting for our leases.
•We apply judgment in determining whether a contract contains a lease or a lease component as defined by Topic 842.
•We have elected to combine leases and non-lease components. As a result, we do not allocate our consideration between leases and non-lease components.
•The discount rate applied to our operating leases is our incremental borrowing rate. We estimated our incremental borrowing rate based on the rate for our traded debt.
•Within the terms and conditions of some of our operating leases we have options to extend or terminate the lease. In instances where we are reasonably certain to exercise available options to extend or terminate, then the option is included in determining the appropriate lease term to apply.
•Where a leasing arrangement is a failed sale and leaseback transaction as no transfer of control has occurred as defined by Topic 606, any monies received will be treated as a financing transaction.
Lessor - When we enter into a new contract, or modify an existing contract, we identify whether that contract has a sales-type, direct financing or operating lease. We do not have any leases classified as sales-type or direct financing. For our operating leases, the underlying asset remains on the balance sheet and we record periodic depreciation expense and lease revenue.
Impairment of long-lived assets
We review the carrying value of our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be appropriate. We first assess recoverability of the carrying value of the asset by estimating the undiscounted future net cash flows expected to be generated from the asset, including eventual disposal. If the undiscounted future net cash flows are less than the carrying value of the asset, then we compare the carrying value of the asset with the discounted future net cash flows, using a relevant weighted-average cost of capital. The impairment loss to be recognized during the period, is the amount by which the carrying value of the asset exceeds the discounted future net cash flows.
Other intangible assets and liabilities
Intangible assets and liabilities were recorded at fair value on the date of Seadrill's emergence from Chapter 11 in February 2022 and on acquisition of Aquadrill in April 2023. The amounts of these assets and liabilities less any estimated residual value are amortized on a straight-line basis over the estimated remaining economic useful life or contractual period. We classify amortization of these intangible assets and liabilities within operating expenses. Our intangible assets include favorable and unfavorable drilling contracts, management services contracts and management incentive fees. In accordance with ASC 360, our intangible assets are reviewed for impairment when indicators of impairment are present, which include events or changes in circumstances that indicate that the carrying amount of an asset may not be recoverable. In the event an impairment loss is recognized, the adjusted carrying amount of the intangible asset is its new accounting basis. Refer to Note 16 – "Other current and non-current assets". Our intangible liabilities include unfavorable drilling contracts and unfavorable leasehold improvements. Refer to Note 21 – "Other current and non-current liabilities".
Debt
At the inception of a term debt arrangement, or whenever we make the initial drawdown on a revolving debt arrangement, we incur a liability for the principal to be repaid. Debt issuance costs and lender fees related to the term loan are netted against the liability and amortized over the term of the loan. Issuance costs and lender fees related to the revolving debt arrangement are amortized straight-line over the term of the revolver. Refer to Note 20 – "Debt" for more information on our debt instruments.
Pension benefits
We make contributions to personal defined contribution plans. These are charged as operational expenses as they become payable. Some of our Norwegian employees are covered by defined benefit plans. The ongoing liability for these schemes is not material and therefore disclosures related to these schemes have not been presented.
Loss contingencies
We recognize a loss contingency in the Consolidated Balance Sheets where we have a present obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount is reasonably estimable. Refer to Note 29 – "Commitments and contingencies".
Share repurchases
Repurchased Shares are recognized at cost as a component of shareholders' equity. If our Shares are acquired for purposes other than retirement, or if ultimate disposition has not yet been decided, the cost of the Shares is recognized as a direct reduction in shareholders' equity as treasury stock. At the point where it is deemed reasonably certain that the acquired Shares will be cancelled/retired, the nominal value of the Shares is recorded as a reduction in share capital with the excess paid over the nominal value recorded as a reduction in additional paid in capital ("APIC").
Share-based compensation
After emerging from Chapter 11 in February 2022, we made awards of restricted stock units ("RSUs") and performance stock units ("PSUs") under the Management Incentive Plan (as defined herein) (see Note 25 – "Share based compensation"). We account for our share based compensation in accordance with ASC 718, which utilizes a "modified grant-date" approach, where the fair value of an equity award is estimated on the grant date without regard to service or performance conditions. The subsequent accounting then depends on whether the award is classified as equity settled or liability settled, based on the conditions provided in ASC 718. If any of the conditions set out in ASC 718 are met, we classify the award as liability settled, otherwise the award is classified as equity settled. The fair value of equity settled awards is fixed on the grant date and not remeasured unless the award is modified. The fair value of liability settled awards is remeasured at the end of each reporting period until settlement. The fair value is recorded as operating expense over the service period for all awards that vest. No cost is recorded for awards that do not vest because service conditions are not satisfied. We account for forfeitures on an actual basis.
Guarantees
Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued and reported in "Other current liabilities" and "Other non-current liabilities". If it becomes probable that we will have to perform under a guarantee, we remeasure the liability if the amount of the loss can be reasonably estimated. Financial guarantees written are assessed for credit losses and any allowance is presented as a liability for off-balance sheet credit exposures where the balance exceeds the collateral provided over the remaining instrument life. The allowance is assessed at the individual guarantee level, calculated by multiplying the balance exposed on default by the probability of default and loss given default over the term of the guarantee. 
Business Combinations
We account for acquisitions in accordance with ASC 805 - Business Combinations. When a transaction qualifies as a business combination under ASC 805 because (i) the acquiree meets the definition of a business and (ii) Seadrill as the acquirer obtains control of an acquiree, the acquisition method is used and the identifiable assets acquired and liabilities assumed are recognized at fair value on the acquisition date. Under ASC 805, the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed is recognized as an asset referred to as goodwill. If the fair value of the net assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized in the Consolidated Statement of Operations at the acquisition date.
Sale of Subsidiaries or Groups of Assets
We account for the sale of a subsidiary or group of assets in accordance with ASC 810 - Consolidations. When we sell a subsidiary or group of assets, we recognize a gain or loss measured as the difference between 1) the aggregate of (i) the fair value of any consideration received, (ii) the fair value of any retained noncontrolling investment in the former subsidiary or group of assets & (iii) the carrying amount of any noncontrolling interest in the former subsidiary; and 2) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. Consideration transferred is the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred by the acquirer to Seadrill, and the equity interests issued by the acquirer to Seadrill, but is net of any liabilities incurred by Seadrill. The gain or loss on sale is net of any costs to sell the subsidiary or group of assets. Refer to Note 30 – "Discontinued Operations" for details of disposals during the comparative periods presented.
v3.24.1
Recent Accounting Standards
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Standards Recent Accounting Standards
1) Recently adopted accounting standards
ASU 2023-05 - Joint Venture Formations (Subtopic 805-60)
To reduce diversity in practice and provide decision-useful information to a joint venture’s investors, the Board decided to require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). This does not have a material impact on the financial statements.
2) Recently issued accounting standards
ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU No. 2023-07, Segment Disclosures (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Board is issuing this update to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. As a result of this update, Seadrill will need to consider adding other measures used by the CODM to assess performance to its segment note. The impacts are yet to be fully assessed.
ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation and information on income taxes paid. The new requirement is effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively, with early adoption permitted. Upon adoption, this standard will require additional disclosures to be included in our financial statements. The impacts are yet to be fully assessed.
SEC Rule - The Enhancement and Standardization of Climate-Related Disclosures for Investors (Release Nos. 33-11275; 34-99678; File No. S7-10-22)
On March 6, 2024, the SEC adopted final rules designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The new rules include disclosures relating to climate-related risks and risk management as well as the board and management’s governance of such risks. In addition, the rules include requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. Larger registrants will also be required to disclose information about greenhouse gas emissions, which will be subject to a phased-in assurance requirement. The final rules include a phased-in compliance period beginning with the 2025 fiscal year for large accelerated filers. The impacts are yet to be fully assessed.
v3.24.1
Chapter 11
 12 Months Ended
Dec. 31, 2023
Reorganizations [Abstract]  
Chapter 11 Chapter 11
Seadrill Chapter 11 Process
i. Chapter 11 filing
The Debtors filed voluntary petitions for reorganization under the Chapter 11 proceedings in the Bankruptcy Court on February 7, 2021 and February 10, 2021 (the "Petition Date"). These filings triggered a stay on enforcement of remedies with respect to our debt obligations.
These filings excluded the Seadrill New Finance Limited group ("NSNCo"), as Seadrill and the NSNCo noteholders negotiated a refinancing outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the "Plan Support Agreement") with certain holders of claims under the Company’s 12 prepetition credit facilities (the "Prepetition Credit Agreements"), and Hemen Holdings Ltd ("Hemen"). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the "Disclosure Statement") and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the "Plan") was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the "Second Lien Facility") and (b) were entitled to participate in a $300 million new-money raise under a first lien facility (the "First Lien Facility"), and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the "Rights Offering").
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the "Backstop Parties" and together, the "Rights Offering Participants"), received the right to lend up to $300 million under the First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted Shares as of the Effective Date. The First Lien Facility was structured as (i) a $175 million term loan (the "Term Loan Facility") and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted Shares as of the Effective Date (the "Equity Commitment Premium"); and (b) paid in cash a premium (the "Commitment Premium") equal to 7.50% of the $300 million in total commitments under the First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the "Convertible Bond") was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the "Conversion Shares") at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the convertible bond, the Company issued 83.00% of the Company’s equity to Credit Agreement claimants, 12.50% to the Rights Offering Participants, 4.25% to the Backstop Parties through the Equity Commitment Premium, and the remaining 0.25% to Class 9 Predecessor shareholders. The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% AllocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder— — %5.00 %
Total shares issued on emergence49,999,998 100.00 %100.00 %
NSNCo Restructuring
As part of Seadrill’s wider process, NSNCo, the holding company for investments in SeaMex, Seabras Sapura, and Archer, concluded a separate restructuring process on January 20, 2022.
The restructuring was achieved using a pre-packaged Chapter 11 process and had the following major impacts:
1.     Holders of the senior secured notes issued by NSNCo released Seadrill from all guarantees and securities previously provided by Seadrill in respect of the notes;
2.     Seadrill disposed of 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.
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd ("SFL"), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements. The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig would be redelivered to SFL upon assignment of the ConocoPhillips drilling contract to SFL. The interim transition bareboat agreement with SFL provided that Seadrill would continue to operate the West Linus until the rig was delivered back to SFL for a period of time that was estimated to last approximately 6 to 9 months from Seadrill’s emergence. The amended charter no longer contained a purchase obligation and resulted in the derecognition of the rig asset of $175 million and a liability of $161 million at emergence from Chapter 11 proceedings on February 22, 2022. Additionally, $7 million of cash held as collateral was returned to SFL. The interim transition bareboat agreement was accounted for as a short-term operating lease.
Other matters
i.Liabilities subject to compromise
Liabilities subject to compromise distinguish prepetition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise prior to the Company's emergence from Chapter 11 proceedings are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amount due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119 
Discontinued operations118 
ii. Interest expense
The Debtors discontinued recording interest on the under-secured debt facilities from the Petition Date, in line with the guidance of ASC 852-10. Contractual interest on liabilities subject to compromise not reflected in the Consolidated Statements of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor) and $298 million for the period from February 10, 2021 to December 31, 2021 (Predecessor).
iii. Reorganization items, net
Incremental costs incurred directly as a result of the bankruptcy filing and any gains or losses on adjustment to the expected allowed claim value under the plan of reorganization are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the year ended December 31, 2023, period from February 23, 2022 through December 31, 2022 (Successor) and period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on settlement of liabilities subject to compromise (a)
——3,581—
Fresh Start valuation adjustments (b)
——242—
Loss on deconsolidation of Paratus Energy Services (c)
——(112)—
Advisory and professional fees (d)
—(15)(44)(127)
Expense of predecessor Directors & Officers insurance policy——(17)—
Remeasurement of terminated lease to allowed claim
———(186)
Interest income on surplus cash
——13
Total reorganization items, net
—(15)3,651(310)
Attributable to:
Continuing operations—(15)3,683(296)
Discontinued operations——(32)(14)
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 Ltd. Refer to Note 5 – "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 December 31, 2023 and 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 5 – "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.
Fresh Start Accounting
Fresh Start accounting
Upon emergence from bankruptcy, Seadrill qualified for and adopted Fresh Start accounting in accordance with the provisions set forth in ASC 852, which resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
The criteria requiring Fresh Start accounting are: (i) the reorganization value of 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 US GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and
management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital ("WACC"), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares and Equipment
The valuation of our capital spares and equipment, including spare parts and capitalized IT software, was determined utilizing the cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and economic obsolescence.
iii. Drilling and management services contracts
We recognized both favorable and unfavorable contracts based on the income approach utilizing a discounted cash flow analysis, comparing the signed contractual dayrate against the global contract assumptions applied in our drilling unit fair value assessment. The cash flows were discounted at an adjusted market participant WACC.
The management services contracts were fair valued based on an excess earnings methodology, adjusted for the incremental cost of services, working capital, tax, and contributory asset charges, with future cash flows discounted at an adjusted market participant WACC.
For the management incentive fee payable to Seadrill as part of the management service agreement with PES, an option pricing model was used to estimate the fair value of the fee.
iv. Leases
The fair value of the West Linus and West Hercules leases were estimated by comparing against assumed global market contract assumptions over the same time period.
v. Investments in associated companies
The fair value of the equity investments in associated companies was based primarily on the income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate, and an estimated tax rate.
vi. Long-term debt
The fair values of the Term Loan Facility and Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible Bond was split in two components: (i) straight debt and (ii) conversion option. The straight debt component was derived through a discounted cash flow analysis. The conversion option component was based on an option pricing model, which forecasts equity volatility and compares the potential conversion redemption against equity movements in industry peers.
Consolidated Balance Sheet
The adjustments included in the following Consolidated Balance Sheet reflect the consummation of the transactions contemplated by the Plan and carried out by the Company ("Reorganization Adjustments") and the fair value adjustments as a result of the application of Fresh Start accounting ("Fresh Start Adjustments"). The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)—336
Restricted cash135(50)(b)—85
Accounts receivable, net169——169
Amount due from related parties, net42——42
Asset held for sale - current63—11(k)74
Other current assets194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81—(17)(l)64
Drilling units1,434(175)(d)316(m)1,575
Restricted cash69——69
Deferred tax assets8—1(n)9
Equipment11—(2)(o)9
Asset held for sale - non-current345—(34)(m,p)311
Other non-current assets13—26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND SHAREHOLDERS'S EQUITY
Current liabilities
Trade accounts payable53——53
Liabilities associated with asset held for sale - current64——64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)——
Liabilities subject to compromise associated with asset held for sale118(118)(f)——
Non-current liabilities
Long-term debt—951(g)—951
Deferred tax liabilities7—(1)(r)6
Liabilities associated with asset held for sale - non-current2——2
Other non-current liabilities108—63(s)171
Total non-current liabilities117951621,130
SHAREHOLDERS' EQUITY
Predecessor common shares of par value10(10)(h)——
Predecessor additional paid-in capital3,504(3,504)(h)——
Accumulated other comprehensive loss(1)1(h)——
Retained (deficit)/earnings(7,322)7,080(i)242(t)—
Successor common shares of par value————
Successor additional paid-in capital—1,499(j)—1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and shareholders' equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of Shares to the Rights Offering Participants(187)
Issuance of Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bond50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in PES of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.24.1
Fresh Start Accounting
 12 Months Ended
Dec. 31, 2023
Reorganizations [Abstract]  
Fresh start accounting Chapter 11
Seadrill Chapter 11 Process
i. Chapter 11 filing
The Debtors filed voluntary petitions for reorganization under the Chapter 11 proceedings in the Bankruptcy Court on February 7, 2021 and February 10, 2021 (the "Petition Date"). These filings triggered a stay on enforcement of remedies with respect to our debt obligations.
These filings excluded the Seadrill New Finance Limited group ("NSNCo"), as Seadrill and the NSNCo noteholders negotiated a refinancing outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the "Plan Support Agreement") with certain holders of claims under the Company’s 12 prepetition credit facilities (the "Prepetition Credit Agreements"), and Hemen Holdings Ltd ("Hemen"). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the "Disclosure Statement") and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the "Plan") was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the "Second Lien Facility") and (b) were entitled to participate in a $300 million new-money raise under a first lien facility (the "First Lien Facility"), and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the "Rights Offering").
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the "Backstop Parties" and together, the "Rights Offering Participants"), received the right to lend up to $300 million under the First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted Shares as of the Effective Date. The First Lien Facility was structured as (i) a $175 million term loan (the "Term Loan Facility") and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted Shares as of the Effective Date (the "Equity Commitment Premium"); and (b) paid in cash a premium (the "Commitment Premium") equal to 7.50% of the $300 million in total commitments under the First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the "Convertible Bond") was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the "Conversion Shares") at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the convertible bond, the Company issued 83.00% of the Company’s equity to Credit Agreement claimants, 12.50% to the Rights Offering Participants, 4.25% to the Backstop Parties through the Equity Commitment Premium, and the remaining 0.25% to Class 9 Predecessor shareholders. The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% AllocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder— — %5.00 %
Total shares issued on emergence49,999,998 100.00 %100.00 %
NSNCo Restructuring
As part of Seadrill’s wider process, NSNCo, the holding company for investments in SeaMex, Seabras Sapura, and Archer, concluded a separate restructuring process on January 20, 2022.
The restructuring was achieved using a pre-packaged Chapter 11 process and had the following major impacts:
1.     Holders of the senior secured notes issued by NSNCo released Seadrill from all guarantees and securities previously provided by Seadrill in respect of the notes;
2.     Seadrill disposed of 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.
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd ("SFL"), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements. The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig would be redelivered to SFL upon assignment of the ConocoPhillips drilling contract to SFL. The interim transition bareboat agreement with SFL provided that Seadrill would continue to operate the West Linus until the rig was delivered back to SFL for a period of time that was estimated to last approximately 6 to 9 months from Seadrill’s emergence. The amended charter no longer contained a purchase obligation and resulted in the derecognition of the rig asset of $175 million and a liability of $161 million at emergence from Chapter 11 proceedings on February 22, 2022. Additionally, $7 million of cash held as collateral was returned to SFL. The interim transition bareboat agreement was accounted for as a short-term operating lease.
Other matters
i.Liabilities subject to compromise
Liabilities subject to compromise distinguish prepetition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise prior to the Company's emergence from Chapter 11 proceedings are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amount due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119 
Discontinued operations118 
ii. Interest expense
The Debtors discontinued recording interest on the under-secured debt facilities from the Petition Date, in line with the guidance of ASC 852-10. Contractual interest on liabilities subject to compromise not reflected in the Consolidated Statements of Operations was $48 million for the period from January 1, 2022 through February 22, 2022 (Predecessor) and $298 million for the period from February 10, 2021 to December 31, 2021 (Predecessor).
iii. Reorganization items, net
Incremental costs incurred directly as a result of the bankruptcy filing and any gains or losses on adjustment to the expected allowed claim value under the plan of reorganization are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the year ended December 31, 2023, period from February 23, 2022 through December 31, 2022 (Successor) and period from January 1, 2022 through February 22, 2022 (Predecessor).
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on settlement of liabilities subject to compromise (a)
——3,581—
Fresh Start valuation adjustments (b)
——242—
Loss on deconsolidation of Paratus Energy Services (c)
——(112)—
Advisory and professional fees (d)
—(15)(44)(127)
Expense of predecessor Directors & Officers insurance policy——(17)—
Remeasurement of terminated lease to allowed claim
———(186)
Interest income on surplus cash
——13
Total reorganization items, net
—(15)3,651(310)
Attributable to:
Continuing operations—(15)3,683(296)
Discontinued operations——(32)(14)
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 Ltd. Refer to Note 5 – "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 December 31, 2023 and 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 5 – "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.
Fresh Start Accounting
Fresh Start accounting
Upon emergence from bankruptcy, Seadrill qualified for and adopted Fresh Start accounting in accordance with the provisions set forth in ASC 852, which resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
The criteria requiring Fresh Start accounting are: (i) the reorganization value of 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 US GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and
management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital ("WACC"), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares and Equipment
The valuation of our capital spares and equipment, including spare parts and capitalized IT software, was determined utilizing the cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and economic obsolescence.
iii. Drilling and management services contracts
We recognized both favorable and unfavorable contracts based on the income approach utilizing a discounted cash flow analysis, comparing the signed contractual dayrate against the global contract assumptions applied in our drilling unit fair value assessment. The cash flows were discounted at an adjusted market participant WACC.
The management services contracts were fair valued based on an excess earnings methodology, adjusted for the incremental cost of services, working capital, tax, and contributory asset charges, with future cash flows discounted at an adjusted market participant WACC.
For the management incentive fee payable to Seadrill as part of the management service agreement with PES, an option pricing model was used to estimate the fair value of the fee.
iv. Leases
The fair value of the West Linus and West Hercules leases were estimated by comparing against assumed global market contract assumptions over the same time period.
v. Investments in associated companies
The fair value of the equity investments in associated companies was based primarily on the income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate, and an estimated tax rate.
vi. Long-term debt
The fair values of the Term Loan Facility and Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible Bond was split in two components: (i) straight debt and (ii) conversion option. The straight debt component was derived through a discounted cash flow analysis. The conversion option component was based on an option pricing model, which forecasts equity volatility and compares the potential conversion redemption against equity movements in industry peers.
Consolidated Balance Sheet
The adjustments included in the following Consolidated Balance Sheet reflect the consummation of the transactions contemplated by the Plan and carried out by the Company ("Reorganization Adjustments") and the fair value adjustments as a result of the application of Fresh Start accounting ("Fresh Start Adjustments"). The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)—336
Restricted cash135(50)(b)—85
Accounts receivable, net169——169
Amount due from related parties, net42——42
Asset held for sale - current63—11(k)74
Other current assets194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81—(17)(l)64
Drilling units1,434(175)(d)316(m)1,575
Restricted cash69——69
Deferred tax assets8—1(n)9
Equipment11—(2)(o)9
Asset held for sale - non-current345—(34)(m,p)311
Other non-current assets13—26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND SHAREHOLDERS'S EQUITY
Current liabilities
Trade accounts payable53——53
Liabilities associated with asset held for sale - current64——64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)——
Liabilities subject to compromise associated with asset held for sale118(118)(f)——
Non-current liabilities
Long-term debt—951(g)—951
Deferred tax liabilities7—(1)(r)6
Liabilities associated with asset held for sale - non-current2——2
Other non-current liabilities108—63(s)171
Total non-current liabilities117951621,130
SHAREHOLDERS' EQUITY
Predecessor common shares of par value10(10)(h)——
Predecessor additional paid-in capital3,504(3,504)(h)——
Accumulated other comprehensive loss(1)1(h)——
Retained (deficit)/earnings(7,322)7,080(i)242(t)—
Successor common shares of par value————
Successor additional paid-in capital—1,499(j)—1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and shareholders' equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of Shares to the Rights Offering Participants(187)
Issuance of Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bond50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in PES of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.24.1
Current expected credit losses
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Current expected credit losses Current expected credit losses
The current expected credit loss model applies to our external trade receivables and related party receivables. Our external customers are international oil companies, national oil companies, and large independent oil companies. The expected credit loss allowance on related party balances as of December 31, 2023 was nil (December 31, 2022: $1 million).
The below table shows the classification of the credit loss expense within the Consolidated Statements of Operations.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Management contract credit/(expense)1 (1)1 (36)
Other financial items credit— — — 2 
Total1 (1)1 (34)
Changes in expected credit loss allowance for external and related party trade receivables are included in operating expenses, while changes in the allowances for related party loan receivables are included in other financial items.
v3.24.1
Segment information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment information Segment information
Operating segments
Following the sale of the KSA Business in October 2022, our organizational structure was simplified, consolidating our operations into a single organization. In light of these changes, the information provided to our CODM was adapted to reflect the updated operational structure during the year ended December 31, 2023. As a result, we have updated the reportable segments disclosed externally from Harsh Environment, Floaters, and Jackups to a single operating segment. This has been reflected for all periods covered by the report.
Geographic data
Revenues
Revenues are attributed to geographical areas based on the country where the revenues are generated. The following presents our revenues and fixed assets by geographic area:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
United States446 146 20 105 
Brazil343 95 19 121 
Angola271 220 43 125 
Norway213 231 78 486 
Canada— 98 — — 
Others (1)
229 53 9 70 
Total revenue1,502 843 169 907 
(1)Other countries represent countries each with less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (2)
Drilling unit fixed assets by geographic area based on location as of the end of the year are as follows:
(In $ millions)December 31, 2023December 31, 2022
United States959 275 
Brazil719 714 
Norway420 312 
Others (3)
760 367 
Total2,858 1,668 
(2)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.
(3)Other countries represent 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
During the year ended December 31, 2023 (Successor), periods from February 23, 2022 through December 31, 2022 (Successor) and January 1, 2022 through February 22, 2022 (Predecessor) and year ended December 31, 2021 (Predecessor) we had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorPredecessor
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Sonadrill17 %21 %9 %— %
Petrobras16 %— %— %— %
Var Energi9 %14 %11 %— %
Equinor6 %14 %10 %15 %
ConocoPhillips5 %13 %13 %18 %
Lundin— %1 %12 %13 %
Others47 %37 %45 %54 %
100 %100 %100 %100 %
v3.24.1
Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from contracts with customers Revenue from contracts with customers
The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers:
(In $ millions)December 31, 2023 December 31, 2022
Accounts receivable, net222 137 
Current contract liabilities (classified within other current liabilities)(31)(19)
Non-current contract liabilities (classified within other non-current liabilities)(33)(42)
Significant changes in the contract liabilities balances during the year ended December 31, 2023 were as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2023  (61)
Aquadrill Acquisition(1)
Amortization of revenue that was included in the beginning contract liability balance  19 
Cash received, excluding amounts recognized as revenue(21)
Net contract liability at December 31, 2023  (64)
Significant changes in the contract liabilities balances during the year ended December 31, 2022 are as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2022 (Predecessor)  (35)
Amortization of revenue that was included in the beginning contract liability balance16 
Net contract liability at February 22, 2022 (Predecessor)(19)
Net contract liability at February 23, 2022 (Successor)(19)
Amortization of revenue that was included in the beginning contract liability balance  9 
Cash received, excluding amounts recognized as revenue(51)
Net contract liability at December 31, 2022 (Successor)  (61)
The deferred revenue balance of $31 million reported in "Other current liabilities" as of December 31, 2023 is expected to be realized within the next 12 months and the $33 million reported in "Other non-current liabilities" is expected to be realized thereafter. The deferred revenue consists primarily of mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations.
v3.24.1
Other revenues
 12 Months Ended
Dec. 31, 2023
Revenues [Abstract]  
Other revenues Other revenues
Other revenues consist of the following:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Leasing revenues (i)
33 24 4 26 
Inventory sales (ii)
— 9 — — 
Early termination fees (iii)
— — — 6 
Other (iv)
12 6 1 — 
Total other revenues45 39 5 32 
i.Leasing revenues
Revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our joint ventures. Refer to Note 26 – "Related party transactions" – for further details.
ii. Inventory sales
Sales of spare parts in inventory from the West Tucana, West Castor and West Telesto were made to Gulf Drilling International.
iii. Early termination fees
Early termination fees were received in 2021 for the West Bollsta.
iv. Other
On July 1, 2022, Seadrill novated its drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term. This lease is considered to form part of Seadrill’s investment in the joint venture, Sonadrill. Accordingly, we recorded a $21 million increase to our investment in Sonadrill at the commencement of the West Gemini lease to Sonadrill on July 1, 2022.
v3.24.1
Other operating items
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other operating items Other operating items
Other operating items consist of the following:
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on disposals (i)
14 1 2 47 
Impairment of long-lived assets (ii)
— — — (152)
Other operating income (iii)
— — — 54 
Total other operating items14 1 2 (51)
i. Gain on disposals
The gain on disposal in 2023 is comprised of sales of capital spares relating to jackups, the West Hercules, and spare parts on previously recycled rigs.
The gain on disposal in 2022 Successor period relates to the sale of sundry assets of the West Tucana and West Carina and the sale of capital spares on the West Hercules and parts on the West Navigator. The gain on disposal in the Predecessor period relates to the sale of the West Venture on January 19, 2022.
Seadrill disposed of seven rigs in 2021, all of which had previously been impaired in full. The full consideration, less costs to sell, was recognized as a gain on disposal.
ii. Impairment of long lived assets
In June 2021, the West Hercules was impaired by $152 million. Refer to Note 12 – "Loss on Impairment of long lived assets".
iii. Other operating income
The gain in 2021 relates primarily to the write-off of pre-petition lease liabilities to Northern Ocean for the West Bollsta of $19 million and pre-petition liabilities to Aquadrill of $8 million following settlement agreements reached in 2021, as well as receipt of a $22 million
distribution from The Norwegian Shipowners' Mutual War Risks Insurance Association, representing a rebate of past premium paid.
v3.24.1
Interest expense
 12 Months Ended
Dec. 31, 2023
Interest Expense [Abstract]  
Interest expense Interest expense
Interest expense consists of the following:
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Cash and payment-in-kind interest on debt facilities (a)
(54)(95)— (25)
Interest on SFL leases (b)
— — (7)(84)
Other(5)(3)— — 
Interest expense(59)(98)(7)(109)
(a) 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. Please refer to Note 20 – "Debt" for more information on these debt facilities.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
$575 million secured bond in issue
(21)— — — 
Post-emergence first lien senior secured(12)(14)— — 
Post-emergence second lien senior secured(16)(78)— — 
Post-emergence unsecured senior convertible bond(5)(3)— — 
Pre-filing senior credit facilities — — — (25)
Cash and payment-in-kind interest(54)(95)— (25)
(b) 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 operating leases, resulting in no further expense being recorded through this line item for the Successor.
For information on our debt facilities please refer to Note 20 – "Debt".
v3.24.1
Loss on impairment of long-lived assets
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Loss on impairment of long-lived assets Loss on impairment of long-lived assets
We review the carrying value of our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be appropriate.
During 2021, the undiscounted future net cash flows to be generated for Seadrill by the West Hercules and West Linus were revised due to anticipated changes in leasing arrangements that would result in the rigs being handed back to SFL before the end of their estimated useful lives. The revised undiscounted future net cash flows for the West Hercules were less than the rig's carrying value meaning that the "step one" or "asset recoverability" test was failed for that rig. Following this assessment, we recorded an impairment charge of $152 million to reduce the rigs book value to its estimated fair value, which we estimated using a discounted cash flow model. There was no impairment charge for the West Linus as it passed the asset recoverability test.
The impairment of $152 million for the year ended December 31, 2021 was classified within "Impairment of long-lived assets" on our Consolidated Statement of Operations.
We derived the fair value of the West Hercules using an income approach based on updated projections of future dayrates, contract probabilities, economic utilization, capital and operating expenditures, applicable tax rates and asset lives. The cash flows were estimated over the remaining useful economic life of the West Hercules and discounted using an estimated market participant WACC of 11.8%. To estimate the fair value, we were required to use various unobservable inputs including assumptions related to the future performance of the West Hercules as explained above. We based all estimates on information available at the time of performing the impairment test.
There were no further indicators of impairment in 2022 or 2023.
v3.24.1
Taxation
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Taxation Taxation
 Income taxes consist of the following:
 SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Current tax expense:   
Bermuda— — — — 
Foreign30 15 3 2 
Deferred tax benefit:
Bermuda— — — — 
Foreign(13)(5)(1)(2)
Total tax expense17 10 2 — 
Effective tax rate5.4 %16.0 %— %— %
The effective tax rate for the year ended December 31, 2023 (Successor), the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor) was 5.4%, 16.0%, 0% and 0% respectively.
Due to the CARES Act in the US, we recognized a tax benefit in 2021 (Predecessor) of $2 million which included the release of valuation allowances previously recorded and carrying back net operating losses to previous years. No tax benefit was recognized for the years ended December 31, 2023 and 2022.
The income taxes for the year ended December 31, 2023 (Successor), the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor) differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows:
 SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Effect of change on unrecognized tax benefits 4 (5)— 2 
Effect of unremitted earnings of subsidiaries1 1 (1)— 
Effect of taxable income in various countries12 14 3 (2)
Total tax expense17 10 2 — 
Deferred income taxes
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The net deferred tax assets are comprised of the following:
Deferred tax assets:
(In $ millions)December 31, 2023 December 31, 2022
Net operating losses carried forward1,097 296 
Property, plant and equipment210 92 
Provisions37 27 
Intangibles5 — 
Pensions and stock options3 1 
Other11 12 
Gross deferred tax assets1,363 428 
Valuation allowance(1,317)(413)
Deferred tax assets, net of valuation allowance46 15 
Deferred tax liabilities:
(In $ millions)December 31, 2023 December 31, 2022
Unremitted earnings of subsidiaries9 8 
Intangibles— 1 
Gross deferred tax liabilities9 9 
Net deferred tax assets37 6
In December 2023, the legislation implementing a corporate income tax in Bermuda received governor's assent. The Bermuda income tax is effective beginning on January 1, 2025 with a statutory income tax rate of 15%. The new law allows corporations to carry forward tax losses incurred in the five fiscal years preceding the effective date and allows for an increase in the tax basis of assets and liabilities. The increases in our gross deferred tax asset and valuation allowance are primarily due to Bermuda's newly enacted corporate tax law.
As of December 31, 2023, deferred tax assets related to net operating loss ("NOL") carryforward was $1,097 million (December 31, 2022: $296 million), which can be used to offset future taxable income. NOL carryforwards which were generated in various jurisdictions, include $675 million (December 31, 2022: $235 million) that will not expire and $422 million (December 31, 2022: $61 million) that will expire between 2024 and 2044 if not utilized.
We establish a valuation allowance for deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized. The amount of deferred tax assets considered realizable could increase or decrease in the near term if our estimates of future taxable income change. Our valuation allowance consists primarily of $1,051 million on NOL carryforwards as of December 31, 2023 (December 31, 2022: $285 million).
Uncertain tax positions
As of December 31, 2023, we had a total amount of unrecognized tax benefits of $150 million excluding interest and penalties. The changes to our balance related to unrecognized tax benefits were as follows:
SuccessorPredecessor
 (In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Balance at the beginning of the period82 84 83 82 
Increases as a result of acquisition of Aquadrill71— — — 
Increases as a result of positions taken in prior periods5 1 1 2 
Increases as a result of positions taken during the current period1 — — 2 
Decreases as a result of positions taken in prior periods(8)— — (1)
Decreases due to settlements— (1)— (1)
Decreases as a result of a lapse of the applicable statute of limitations(1)(2)— (1)
Balance at the end of the period150 82 84 83 
The uncertain tax positions were included in "Other non-current liabilities" on our Consolidated Balance Sheets and are comprised as follows:
(In $ millions)December 31, 2023December 31, 2022
Gross unrecognized tax benefits excluding interest and penalties150 82 
Aquadrill interest and penalties acquired11 — 
Interest and penalties27 21 
Offset against deferred tax assets(18)(18)
Total unrecognized tax benefits included as "Other non-current liabilities"170 85
Accrued interest and penalties totaled $38 million at December 31, 2023 (December 31, 2022: $21 million) and were included in "Other non-current liabilities" on our Consolidated Balance Sheets. We recognized expense of $6 million and $2 million during the years ended December 31, 2023 and 2022, respectively, related to interest and penalties for unrecognized tax benefits on the income tax expense line in the Consolidated Statement of Operations.
As of December 31, 2023, $170 million of our unrecognized tax benefits, including penalties and interest, would have a favorable impact on the Company’s effective tax rate if recognized.
Tax returns and open years
We are subject to taxation in various jurisdictions. 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 $161 million including interest and penalties. The assessment for the 2009 and 2010 years is being litigated through the Brazilian courts. Please refer to Note 29 - "Commitments and contingencies" for further details.
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 2019 for an aggregate amount equivalent to $171 million. We are robustly contesting these assessments including filing relevant appeals in Nigeria.
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 $110 million. We are robustly contesting these assessments including filing relevant appeals. 
An adverse outcome on these proposed assessments could result in a material adverse impact on our Consolidated Balance Sheets, Statements of Operations or Cash Flows.
The following table summarizes the earliest tax years that remain subject to examination by major taxable jurisdictions in which we operate. 
JurisdictionEarliest open year
Brazil2008
Norway2015
Switzerland2019
United States2020
v3.24.1
Earnings/(loss) per share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings/(loss) per share Earnings/(loss) per share
The computation of 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 and share based compensation are dilutive as the Company was in a profit-making position. Refer to Note 20 – "Debt", for details.
The components of the numerator for the calculation of basic and diluted EPS are as follows:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Net income/(loss) from continuing operations 300 (73)3,739 (572)
Income/(loss) after tax from discontinued operations — 274 (33)(15)
Net income/(loss) available to stockholders300 201 3,706 (587)
Effect of dilution - interest on unsecured senior convertible bond (Note 11)5 3 — — 
Diluted net income/(loss) available to stockholders305 204 3,706 (587)
The components of the denominator for the calculation of basic and diluted EPS/LPS are as follows:
SuccessorPredecessor
(In millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Basic earnings per share:
Weighted average number of common shares outstanding(1)
71 50 100 100 
Diluted earnings per share:
Effect of dilution3 3 — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution74 53 100 100 
(1) Weighted average number of common shares outstanding in the year 2023 excludes Treasury shares repurchased and shares retired during the period. Please refer to Note 23 – "Common Shares" for details on Shares repurchased.
The basic and diluted EPS/LPS are as follows:     
SuccessorPredecessor
(In $)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Basic EPS/(LPS): continuing operations4.23 (1.46)37.25 (5.70)
Diluted EPS/(LPS): continuing operations4.12 (1.46)37.25 (5.70)
Basic EPS/(LPS)4.23 4.02 36.92 (5.85)
Diluted EPS/(LPS)4.12 3.88 36.92 (5.85)
ASC 260 ‘Earnings per Share’ requires the presentation of diluted earnings per share where a company could be called upon to issue shares that would decrease net earnings per share. In periods where losses are reported, the effect of including potentially dilutive instruments in the calculation would result in a reduction in loss per share, which is anti-dilutive. Under these circumstances, these instruments are not included in the calculation due to their anti-dilutive effect and as a result the basic and diluted loss per share are equal.
v3.24.1
Restricted cash
 12 Months Ended
Dec. 31, 2023
Restricted Cash and Investments [Abstract]  
Restricted cash Restricted cash
Restricted cash consists of the following:
(In $ millions)December 31, 2023December 31, 2022
Cash held in escrow23 23 
Demand deposit pledged as collateral for tax related guarantee (1)
— 74 
Accounts pledged as collateral for performance bonds and similar guarantees— 10 
Other8 11 
Total restricted cash31 118 
(1) The guarantee was replaced during the year with a new guarantee not requiring cash collateral. Please refer to Note 29 – "Commitments and contingencies" for further details.
Restricted cash is presented in our Consolidated Balance Sheets as follows:
(In $ millions)December 31, 2023December 31, 2022
Current restricted cash31 44 
Non-current restricted cash— 74 
Total restricted cash31 118 
v3.24.1
Other current and non-current assets
 12 Months Ended
Dec. 31, 2023
Other Assets [Abstract]  
Other current and non-current assets Other current and non-current assets
Other current assets
As of December 31, 2023 and 2022, other current assets included the following: 
(In $ millions)December 31, 2023December 31, 2022
Taxes receivable67 42 
Prepaid expenses54 37 
Deferred contract costs41 34 
Pre-funding of MSA manager arrangements23 — 
Favorable drilling and management services contracts1 30 
Other13 26 
Total other current assets199 169 
Other non-current assets
As of December 31, 2023 and 2022, other non-current assets included the following: 
(In $ millions)December 31, 2023December 31, 2022
Deferred contract costs44 77 
Favorable drilling and management services contracts— 12 
Other12 4 
Total other non-current assets56 93 
Favorable drilling contracts and management services contracts
The following tables summarize the movement in favorable drilling contracts and management services contracts for the year ended December 31, 2023 and the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
Gross carrying amountAccumulated amortizationNet carrying amount
As at January 1, 202396 (54)42 
PES disposal(13)— (13)
Aquadrill acquisition 7 — 7 
Amortization— (35)(35)
As at December 31, 202390 (89)1 
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)266 (257)9 
Balance before reorganization and fresh start adjustments266 (257)9 
Fresh Start accounting(170)257 87 
As at February 22, 2022 (Predecessor)96 — 96 
As at February 23, 2022 (Successor)96 — 96 
Amortization— (54)(54)
As at December 31, 2022 (Successor)96 (54)42 
In 2023, on acquiring Aquadrill, and in 2022, 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 31 – "Business combinations" and Note 5 – "Fresh Start Accounting" respectively. The amortization is recognized in the Consolidated Statements of Operations as "Depreciation and amortization". The remaining favorable drilling contracts and management services contracts will be fully amortized in 2024.
v3.24.1
Investment in associated companies
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investment in associated companies Investment in associated companies  
We had the following investments in associated companies as of December 31, 2023 and December 31, 2022:
Ownership percentageDecember 31, 2023December 31, 2022
Sonadrill (i)
50 %50 %
Gulfdrill (ii)
50 %50 %
Paratus Energy Services Ltd (iii)
— %35 %
We account for our investments in associates under the equity method. For transactions with related parties refer to Note 26 – "Related party transactions".
i. Sonadrill
Sonadrill is a joint venture that presently operates three drillships focusing on opportunities in Angolan waters. Seadrill owns a 50% stake in Sonadrill, with the remaining 50% interest owned by Sonangol EP ("Sonangol"). Both companies initially committed to charter two units each into the joint venture. As of December 31, 2023, Sonadrill leased three drillships, including the Libongos and Quenguela from Sonangol, and the West Gemini from Seadrill. Seadrill manages all three units for the joint venture.
The Libongos has been operating within the joint venture since 2019, and the Quenguela commenced operations on its maiden contract in March 2022. On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract. The West Gemini is leased to Sonadrill at a nominal charter rate based on a commitment made under the terms of the joint venture agreement.
Seadrill's investment in the Sonadrill joint venture includes initial equity capital and certain other contingent commitments, including the commitment to charter up to two drillships to the joint venture at a nominal charter rate, contingent on Sonadrill obtaining drilling contracts for the units. The lease of the West Gemini to Sonadrill for the duration of the contracts for a nominal charter rate is considered part of Seadrill’s investment in the joint venture. As such, the company recorded a liability equal to the fair value of the lease at the commencement of the West Gemini lease to Sonadrill, with the offsetting entry being a basis difference against the investment in Sonadrill.
The remaining committed Seadrill rig will be leased to the joint venture once Sonadrill secures a drilling contract.
ii. Gulfdrill
Seadrill owns a 50% stake in Gulfdrill, a joint venture that operates five premium jackups in Qatar with Qatargas. The remaining 50% interest is owned by Gulf Drilling International ("GDI"), which manages all five rigs. Three of Seadrill's jackup rigs are leased to the joint venture, namely the West Castor, West Telesto, and West Tucana. The two additional units are leased from a third-party shipyard, and all costs associated with these units are borne by Gulfdrill.
iii. Paratus Energy Services Ltd
PES, formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 4 – "Chapter 11".
On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023 for total consideration of $44 million. As the total consideration received approximated the book value disposed, a minor gain has been recognized in the Consolidated Statement of Operations. In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings Ltd ("SeaMex Holdings") with a termination notice regarding (i) the Master Services Agreement by and between PES and Seadrill Management Ltd, dated January 20, 2022 (the "Paratus MSA"), and (ii) the Master Services Agreement by and among SeaMex Holdings, certain operating companies party thereto and SML, dated January 20, 2022 (the "SeaMex MSA"), respectively. The Paratus MSA terminated on November 30, 2023; and the SeaMex MSA terminated on November 17, 2023. The termination of the Paratus MSA and SeaMex MSA did not have a material effect on the Company's financial results.
For further information on Seadrill's comprehensive restructuring, including the disposal of the 65% interest in Paratus Energy Services Ltd, please refer to Note 4 – "Chapter 11".
Share in results from associated companies
Our share in results of our associated companies were as follows:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Sonadrill31 2 1 5 
Gulfdrill6 4 — (2)
PES— (8)(3)— 
Total share in results from associated companies (net of tax)37 (2)(2)3 
Seadrill recorded $8 million of losses from its share of the post-emergence results of PES until September 30, 2022, when it entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The deal was closed on February 24, 2023, and the carrying values of the equity method investment in PES, together with certain other related balances, approximately equal the agreed sales price. There was no material gain or loss on the sale, and there has been no further recognition of PES results after the agreement date. Accordingly, we have not presented a summary of the results of PES in the section below.
Summary of Consolidated Statements of Operations for our investments in associated companies
The results of Sonadrill and our share in those results is summarized below:
SonadrillSuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues357 200 14 94 
Net operating income101 21 2 18 
Net income79 10 2 11 
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Sonadrill (net of tax)39 5 1 5 
Basis difference amortization(8)(3)— — 
Net share in results from Sonadrill31 2 1 5 
The results of Gulfdrill and our share in those results is summarized below:
GulfdrillSuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues199 167 28 142 
Net operating income/(loss)16 14 2 (4)
Net income/(loss)12 9 1 (4)
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Gulfdrill (net of tax)6 4 — (2)
Book value of our investments in associated companies
At the year end, the book values of our investments in our associated companies were as follows:
(In $ millions)December 31, 2023December 31, 2022
Sonadrill80 49 
Gulfdrill10 4 
PES
— 31 
Total90 84 
Summarized Consolidated Balance sheets for our investments in associated companies
The summarized balance sheets of the Sonadrill companies and our share of recorded equity in those companies was as follows:
(In $ millions)December 31, 2023December 31, 2022
Current assets169 105 
Non-current assets— 1 
Current liabilities(25)(40)
Non-current liabilities— (1)
Net assets144 65 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment72 33 
Basis difference net of amortization (i)
8 16 
Net book value of Seadrill investment80 49 
(i) On July 1, 2022, Seadrill recorded a liability of $21 million reflecting the fair value of the lease of the West Gemini to the Sonadrill joint venture at a nominal charter rate, with the offsetting entry being a basis difference in the joint venture. This basis difference is amortized over the lease term.
The summarized balance sheets of the Gulfdrill companies and our share of recorded equity in those companies was as follows:
(In $ millions)December 31, 2023December 31, 2022
Current assets118 110 
Non-current assets114 80 
Current liabilities(78)(129)
Non-current liabilities(134)(54)
Net assets20 7 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment10 4 
v3.24.1
Drilling units
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Drilling units Drilling units
The following table summarizes the movement for the year ended December 31, 2023:
(In $ millions)CostAccumulated depreciationNet book value
As at January 1, 20231,761 (93)1,668 
Aquadrill acquisition1,252 — 1,252 
Additions206 — 206 
Depreciation — (183)(183)
Disposals (1)
(86)1 (85)
As at December 31, 20233,133 (275)2,858 
(1) Primarily relates to the disposal of the tender-assist units acquired under the Aquadrill acquisition.
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)2,241(810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23— 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (1)
(211)36(175)
Fresh Start accounting (2)
(452)768316
As at February 22, 2022 (Predecessor)1,575 — 1,575 
As at February 23, 2022 (Successor)1,575 — 1,575 
Additions210 — 210 
Disposal of Sevan Brasil and Sevan Driller
(24)— (24)
Depreciation — (93)(93)
As at December 31, 2022 (Successor)1,761 (93)1,668 
(1) The lease agreements with SFL for the West Hercules and West Linus were amended such that the rigs were derecognized from drilling units in August 2021 and February 2022, respectively, and replaced with right of use assets within other assets. The West Linus and West Hercules were returned to SFL in September 2022 and December 2022, respectively.
(2) On emergence from Chapter 11 proceedings, the carrying values of our drilling units were adjusted to fair value as a result of the implementation of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. Refer to Note 5 – "Fresh Start Accounting" for further information.
v3.24.1
Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Equipment Equipment
Equipment consists of office equipment, software, furniture and fittings. The following table summarizes the movement for the year ended December 31, 2023:
 (In $ millions)
Cost Accumulated Depreciation Net Book Value
As at January 1, 202313(3)10
Additions3— 3
Aquadrill acquisition 1— 1
Depreciation — (4)(4)
As at December 31, 202317 (7)10 
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 December 31, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)39 (28)11 
Balance before reorganization and fresh start adjustments39 (28)11 
Fresh start adjustments(30)28(2)
As at February 22, 2022 (Predecessor)9— 9
As at February 23, 2022 (Successor)9— 9
Additions4 — 4 
Depreciation— (3)(3)
As at December 31, 2022 (Successor)13 (3)10 
v3.24.1
Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
The table below sets our external debt agreements as of December 31, 2023 and 2022:
(In $ millions)December 31, 2023December 31, 2022
Secured debt:
$575 million secured bond in issue
575 — 
Term loan facility— 175 
Second lien facility— 271 
Total secured debt 575 446 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 625 496 
Debt premium and exit fees:
Premium on bond issuance1— 
Term loan facility exit fee— 9 
Second lien facility exit fee— 13 
Total debt premium and exit fees1 22 
Less: bond issuance costs(18)— 
Total debt608 518 
Debt is presented in our Consolidated Balance Sheets as:
(In $ millions)December 31, 2023December 31, 2022
Debt due within one year— 22 
Long-term debt608 496 
Total debt 608 518 
$575 million secured bond in issue
In July 2023 Seadrill issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the "Initial Notes") in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. Subsequently, in August 2023, Seadrill offered (together with the offering of the Initial Notes, the "Offering") and issued an additional $75 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the "Incremental Notes"), maturing on August 1, 2030 (together, the "Notes"). The Incremental Notes were issued at 100.75% of par.
The net proceeds from the issuance of the Notes were used to: (i) prepay in full the outstanding amounts under our then-existing secured debt facilities and (ii) pay fees associated with exiting such secured debt facilities. A total of $187 million was paid to satisfy the First Lien Facility, including principal, interest, and exit fees, along with an additional make-whole payment of $10 million. The Second Lien Facility was completely repaid with a total payment of $123 million, which covered principal, interest, and exit fees. The remainder of the net proceeds will be used for general corporate purposes.
New revolving credit facility
Also in July 2023, the Company entered into a new $225 million, 5-year first lien revolving credit facility (the "RCF"). The facility includes an ‘accordion feature’ allowing Seadrill to increase this limit by up to an additional $100 million, subject to agreement from the lenders. It also includes a provision for issuing letters of credit up to $50 million. The RCF is subject to an interest rate per annum equal to (a) the Secured Overnight Financing Rate ("SOFR") plus (b) a margin based on credit ratings. This facility has not been drawn to date. In addition, Seadrill is required to pay a quarterly commitment fee on any unused portion of the RCF.
Term loan and revolving credit facility
On emergence from Chapter 11 on February 22, 2022, we entered into the $300 million First Lien Facility with a syndicate of lenders secured on a first lien basis. The facility had a maturity of December 15, 2026 and consisted of a $175 million Term Loan Facility and a $125 million revolving credit facility, which was never drawn down. The Term Loan Facility and revolving credit facility, if drawn, incurred interest at a margin of 7% per annum plus the SOFR (and any applicable credit adjustment spread). A commitment fee of 2.8% per annum was payable in respect of any undrawn portion of the revolving credit facility commitment. The facility included an undrawn, uncommitted basket in amount of $50 million for incremental facilities pari passu with the facility for specified purposes. There was a 3% exit fee payable on principal repayments under the First Lien Facility; in addition, there was a make-whole premium payable if the facility was repaid within the first three years. On July 27, 2023, we repaid this facility in full with a portion of the net proceeds from the Offering. Payment of the make-whole premium resulted in a $10 million loss on debt extinguishment recorded in the Consolidated Statement of Operations.
Second lien facility
On emergence from Chapter 11 on February 22, 2022, we entered into the Second Lien 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 incurred interest at a total margin of 12.5% per annum plus the SOFR (and any applicable credit adjustment spread), and had a maturity of June 15, 2027. The above-mentioned margin was comprised of 5% cash interest; and 7.5% pay-if-you-can ("PIYC") interest, whereby, under certain liquidity conditions set out in the facility agreement, Seadrill was either required to pay the interest in cash or capitalize the interest to the principal outstanding. The PIYC interest compounded to the loan quarterly. There was a 5% exit fee required on this facility. Voluntary prepayments of debt principal of $150 million and exit fee of $8 million were made during the year ended December 31, 2023, alongside scheduled amortization payments. On July 27, 2023, we repaid this facility in full with a portion of the net proceeds from the Offering.
Unsecured senior convertible bond
On emergence from Chapter 11 on February 22, 2022, as part of the Reorganization, we issued a $50 million unsecured senior convertible bond to Hemen Holdings Ltd. Our unsecured senior convertible bond has a maturity of August 2028 and bears interest, payable quarterly in cash, at the Term SOFR (as defined in the Note Purchase Agreement dated as of February 22, 2022, as amended (the "Note Purchase Agreement") plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the convertible bond. If not converted, a bullet repayment will become due on the maturity date.
v3.24.1
Other current and non-current liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Other current and non-current liabilities Other current and non-current liabilities
Other current liabilities
As of December 31, 2023 and 2022, other current liabilities included the following:  
(In $ millions)December 31, 2023December 31, 2022
Accrued expenses117 124 
Employee withheld taxes, social security and vacation payments54 47 
Taxes payable33 29 
Contract liabilities31 19 
Unfavorable drilling contracts30 24 
Accrued interest expense21 4 
Other liabilities50 59 
Total other current liabilities336 306 
Other non-current liabilities
As of December 31, 2023 and 2022, other non-current liabilities included the following:  
(In $ millions)December 31, 2023December 31, 2022
Uncertain tax positions170 85 
Contract liabilities33 42 
Unfavorable drilling contracts22 46 
Other liabilities4 17 
Total other non-current liabilities229 190 
Unfavorable drilling contracts and management services contracts
The following tables summarize the movement in unfavorable drilling contracts and management services contracts for the year ended December 31, 2023, the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 202385 (15)70 
Aquadrill acquisition49 — 49 
Amortization— (67)(67)
As at December 31, 2023134 (82)52 

 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)66 (60)6 
Balance before reorganization and fresh start adjustments66 (60)6 
Fresh Start accounting19 60 79 
As at February 22, 2022 (Predecessor)85 — 85 
As at February 23, 2022 (Successor)85 — 85 
Amortization— (15)(15)
As at December 31, 2022 (Successor)85 (15)70 
In 2023, on acquiring Aquadrill, and in 2022, 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 31 – "Business combinations" and Note 5 – "Fresh Start Accounting" respectively. The amortization is recognized in the Consolidated Statements of Operations as "Depreciation and amortization". The weighted average remaining amortization period for unfavorable contracts is 22 months.
The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31
(In $ millions)202420252026Total
Amortization of unfavorable contracts30 19 3 52 
v3.24.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
Current leasing arrangements
We have operating leases relating to our premises, for which we are the lessee. The most significant leases are for our offices in Houston, Liverpool, Stavanger, Rio de Janeiro, Luanda and, up until the reduction in the lease term as a result of the planned 2024 office close, London. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We also continue to lease three of our benign environment jackup rigs, namely West Castor, West Telesto, and West Tucana, to Gulfdrill, a joint venture, for a contract with GDI in Qatar. On July 1, 2022 we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Lease fair value and Chapter 11
In accordance with bankruptcy guidance, Seadrill follows specific guidance for assumed leases under ASC 842 and ASC 805. Liabilities and assets associated with assumed leases are recognized as of the date of emergence in accordance with the provisions of ASC 805. Leases are one of the limited exceptions to the fair value recognition and measurement principles under ASC 805. At emergence, assumed leases are remeasured using the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise), the remaining lease payments, and the updated discount rate for the successor entity reflective of the new lease term. Additionally, under this guidance, the successor entity is required to retain the predecessor’s previous lease classification, unless the lease is modified.
Further, in accordance with ASC 805, Seadrill adjusted its acquired operating lease right-of-use ("ROU") assets to the amount of the corresponding lease liabilities, taking into account any favorable or unfavorable terms of the lease compared to market terms. To determine any favorable or unfavorable terms, Seadrill considered all the terms of the lease, including rent payments, options for renewal or termination, purchase options, and lease incentives. As part of its fresh-start valuation, Seadrill decreased the ROU asset by $9 million for the West Hercules and $13 million for the West Linus SFL bareboat charters due to off-market rental payments. These leases expired in November 2022 and January 2023, respectively. Refer to Note 5 – "Fresh Start Accounting" for further details of the adjustments recorded on fresh start accounting.
Lease liabilities (Short-term and Long-term)
In accordance with ASC 805, acquired operating lease liabilities should be measured as if they were new leases following the guidance under ASC 842 (e.g., reassessment of the lease term, incremental borrowing rate ("IBR"), lease payments, purchase options). Therefore, all assumed lease liabilities were measured at the present value of remaining lease payments discounted at the IBR of the successor on the date of remeasurement (i.e., the Effective Date).
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as of December 31, 2023, were as follows:
(In $ millions)Year ended December 31, 2023
20242 
20251 
20261 
2027 and thereafter2 
Total6 
Reconciliation between undiscounted cashflows and operating lease liability
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheet as of December 31, 2023:
(In $ millions)December 31, 2023December 31, 2022
Total undiscounted cash flows6 11 
Less discount(2)(2)
Operating lease liability4 9 
Of which:
Current2 3 
Non-current2 6 
Total 4 9 
Other supplementary information
The following table gives supplementary information regarding our lease accounting at December 31, 2023:
SuccessorPredecessor
(In $ million)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating lease cost:
Operating lease cost4 36 4 42 
Short-term lease cost— 3 1 1 
Total lease cost4 39 5 43 
Other information:
Cash paid for lease liabilities- operating cash flows4 39 5 41 
ROU assets obtained in exchange for lease liabilities — — 24 24 
Weighted-average remaining lease term in months47522219
Weighted-average discount rate10%10%9%10%
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of December 31, 2023, were as follows. These estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31, 2023
202453 
202547 
20266 
Total106 
Refer to Note 9 – "Other revenue" for details of the revenues recorded in respect of the above leases.
Lessor Leases
Current leasing arrangements
We have operating leases relating to our premises, for which we are the lessee. The most significant leases are for our offices in Houston, Liverpool, Stavanger, Rio de Janeiro, Luanda and, up until the reduction in the lease term as a result of the planned 2024 office close, London. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We also continue to lease three of our benign environment jackup rigs, namely West Castor, West Telesto, and West Tucana, to Gulfdrill, a joint venture, for a contract with GDI in Qatar. On July 1, 2022 we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Lease fair value and Chapter 11
In accordance with bankruptcy guidance, Seadrill follows specific guidance for assumed leases under ASC 842 and ASC 805. Liabilities and assets associated with assumed leases are recognized as of the date of emergence in accordance with the provisions of ASC 805. Leases are one of the limited exceptions to the fair value recognition and measurement principles under ASC 805. At emergence, assumed leases are remeasured using the remaining lease term (including consideration for any lessee options that are reasonably certain of exercise), the remaining lease payments, and the updated discount rate for the successor entity reflective of the new lease term. Additionally, under this guidance, the successor entity is required to retain the predecessor’s previous lease classification, unless the lease is modified.
Further, in accordance with ASC 805, Seadrill adjusted its acquired operating lease right-of-use ("ROU") assets to the amount of the corresponding lease liabilities, taking into account any favorable or unfavorable terms of the lease compared to market terms. To determine any favorable or unfavorable terms, Seadrill considered all the terms of the lease, including rent payments, options for renewal or termination, purchase options, and lease incentives. As part of its fresh-start valuation, Seadrill decreased the ROU asset by $9 million for the West Hercules and $13 million for the West Linus SFL bareboat charters due to off-market rental payments. These leases expired in November 2022 and January 2023, respectively. Refer to Note 5 – "Fresh Start Accounting" for further details of the adjustments recorded on fresh start accounting.
Lease liabilities (Short-term and Long-term)
In accordance with ASC 805, acquired operating lease liabilities should be measured as if they were new leases following the guidance under ASC 842 (e.g., reassessment of the lease term, incremental borrowing rate ("IBR"), lease payments, purchase options). Therefore, all assumed lease liabilities were measured at the present value of remaining lease payments discounted at the IBR of the successor on the date of remeasurement (i.e., the Effective Date).
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as of December 31, 2023, were as follows:
(In $ millions)Year ended December 31, 2023
20242 
20251 
20261 
2027 and thereafter2 
Total6 
Reconciliation between undiscounted cashflows and operating lease liability
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheet as of December 31, 2023:
(In $ millions)December 31, 2023December 31, 2022
Total undiscounted cash flows6 11 
Less discount(2)(2)
Operating lease liability4 9 
Of which:
Current2 3 
Non-current2 6 
Total 4 9 
Other supplementary information
The following table gives supplementary information regarding our lease accounting at December 31, 2023:
SuccessorPredecessor
(In $ million)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating lease cost:
Operating lease cost4 36 4 42 
Short-term lease cost— 3 1 1 
Total lease cost4 39 5 43 
Other information:
Cash paid for lease liabilities- operating cash flows4 39 5 41 
ROU assets obtained in exchange for lease liabilities — — 24 24 
Weighted-average remaining lease term in months47522219
Weighted-average discount rate10%10%9%10%
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of December 31, 2023, were as follows. These estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31, 2023
202453 
202547 
20266 
Total106 
Refer to Note 9 – "Other revenue" for details of the revenues recorded in respect of the above leases.
v3.24.1
Common shares
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Common shares Common shares
Share capital as of December 31, 2023 and December 31, 2022 was as follows:
 Issued and fully paid share capital
SharesPar value each$ thousands
As at January 1, 2022 and balance before reorganization and fresh start adjustments100,384,435 $0.10 10,038 
Cancellation of Predecessor equity(100,384,435)$0.10 (10,038)
Issuance of Successor common stock49,999,998 $0.01 500 
As at February 22, 2022 (Predecessor)49,999,998 $0.01 500 
As at February 23, 2022, and December 31, 2022 (Successor)49,999,998 $0.01 500 
Share issued to Aquadrill unitholders and equity award holders29,866,543 $0.01 299 
Share repurchased and cancelled(5,817,579)$0.01 (58)
As at December 31, 2023 (1)
74,048,962 $0.01 741 
(1) Total Shares in issue of 74,048,962 includes 343,619 Shares repurchased in December 2023 and pending cancellation. These Shares are considered retired for accounting purposes.
Common share transactions for periods presented
On February 22, 2022, Seadrill concluded its comprehensive restructuring process and emerged from Chapter 11 bankruptcy protection. The Predecessor equity of 100,384,435 common shares were cancelled and replaced with issuance of Successor common stock. Please refer to Note 4- "Chapter 11" for further details on the changes to share capital in 2022.
In connection with the Aquadrill acquisition, Seadrill issued approximately 29.9 million shares to Aquadrill unitholders and equity award holders, representing approximately 37% of the post-Merger issued and outstanding Shares. Please refer to Note 31 – "Business combinations" for further details.
On August 14, 2023, the Board of Directors authorized a share repurchase program under which the Company could purchase up to $250 million of its outstanding common shares. Seadrill fully completed the share repurchases under this program and cancelled the associated Shares by December 20, 2023, resulting in 5,817,579 Shares with a weighted average share price of $42.97, being returned to authorized but unissued status.
Furthermore, on November 27, 2023, the Board of Directors authorized an increase in the Company’s aggregate share repurchase authorization, allowing the Company to repurchase up to an additional $250 million of its outstanding common shares, taking the aggregate authorization to $500 million. Under the additional authorization, during December 2023, Seadrill repurchased 343,619 Shares on the NYSE and the OSE, with a weighted average share price of $45.68.
Key terms of shares issued and outstanding shares
All our issued and outstanding Shares are and will be fully paid. Subject to the Bye-Laws, the Board of Directors is authorized to issue any of the authorized but unissued Shares. There are no limitations on the right of non-Bermudians or non-residents of Bermuda to hold or vote in the Shares.
Holders of Shares have no pre-emptive, redemption, conversion or sinking fund rights. Holders of Shares are entitled to one vote per Share on all matters submitted to a vote of holders of Shares. Unless a different majority is required by law or the Bye-Laws, resolutions to be approved by holders of Shares require the approval by an ordinary resolution (being a resolution approved by a simple majority of votes cast at a general meeting at which a quorum is present). Under the Bye-Laws, each Share is entitled to dividends if, as and when dividends are declared by the Board of Directors, subject to any preferred dividend right of the holders of any preference shares.
In the event of liquidation, dissolution or winding up of the Company, the holders of Shares are entitled to share equally and ratably in the Company's assets, if any, remaining after the payment of all its debts and liabilities, subject to any liquidation preference on any issued and outstanding preference Shares
v3.24.1
Accumulated other comprehensive income/(loss)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive income/(loss) Accumulated other comprehensive income/(loss)
Changes in accumulated other comprehensive income/(loss) for the periods presented in this report were as follows:
(In $ millions)Actuarial gain/(loss) relating to pensionShare in unrealized losses from associated companiesChange in debt component on Archer facilityTotal
As at January 1, 2022 (Predecessor)(2)(19)6 (15)
Other comprehensive income from continuing operations1 — — 1 
Other comprehensive loss from discontinued operations— (2)(1)(3)
Recycling of accumulated other comprehensive loss on sale of PES— 21 (5)16 
Balance before reorganization and fresh start adjustments(1)— — (1)
Reset accumulated other comprehensive loss1 — — 1 
As at February 22, 2022 (Predecessor)— — — — 
As at February 23, 2022 (Successor) — — — — 
Other comprehensive income2 — — 2 
As at December 31, 2022 (Successor)2 — — 2 
Other comprehensive loss(1)— — (1)
As at December 31, 2023 (Successor)1 — — 1 
v3.24.1
Share based compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share based compensation Share based compensation
On August 6, 2022, the Board of Directors adopted the Seadrill Limited 2022 Management Incentive Plan, which was amended and restated on September 25, 2023 and approved by the shareholders at Seadrill's annual general meeting held on November 17, 2023 (the "Management Incentive Plan") and reserved 2,910,053 common shares of the Company for issuance thereunder. As of the date of this filing, 2,892,987 Shares remain available for issuance with respect to awards that have been or may be granted from time to time under the Management Incentive Plan.
In accordance with the Chapter 11 Plan, the number of Shares reserved constituted 5.5% of the company's share capital on a fully diluted and fully distributed basis on the date the Management Incentive Plan was adopted. During the year ended December 31, 2022, members of Senior Management were granted 125,553 time-based restricted stock units ("MIP 2022 RSUs") and 292,955 performance-based restricted stock units ("MIP 2022 PSUs") under this Management Incentive Plan. During the year ended December 31, 2023, the Company granted an additional 6,412 MIP 2022 RSUs and 14,960 MIP 2022 PSUs.
On February 1, 2023, the Company granted a further 65,492 restricted stock units ("LTIP 2023 RSUs") and 58,481 performance stock units ("LTIP 2023 PSUs") with similar terms to the 2022 grants. On September 25, 2023, under the same Management Incentive Plan, the Company granted 125,841 time-based restricted stock units ("MIP 2023 TRSUs") and 293,629 performance-based restricted stock units ("MIP 2023 PRSUs") to certain employees, 60% of which are subject to the achievement of a total shareholder return ("TSR") market condition and 40% of which are subject to the achievement of a performance condition based on free cash flow metrics ("FCF").The time-based restricted stock units generally vest in three equal installments over a period of three years. The performance-based restricted stock units generally cliff vest over an explicit service period of two to three years.
These awards were to be settled only in cash until November 17, 2023 (the "Modification Date") when a shareholder approval of the Management Incentive Plan was obtained. From and after the Modification Date, these awards may be settled in cash or common shares of the Company at the election of the Joint Nomination and Remuneration Committee (the "Committee").
Since the liability-classified awards were modified to equity-classified awards without changing any other terms of the awards, the fair value of the units at the Modification Date became the measurement basis from that point forward. For the MIP 2022 RSU, LTIP 2023 RSU, MIP 2023 TRSU and MIP 2023 PRSU – FCF, the Company utilized $41.83, the market price of the underlying share listed on the NYSE at the Modification Date. For the MIP 2022 PSU, LTIP 2023 PSU and MIP 2023 PRSU – TSR the Modification Date fair values were determined using Monte Carlo pricing models, which yielded fair values of $32.48, $16.96 and $51.24 respectively.
A summary of the time-based restricted stock unit activities and performance-based restricted stock unit activities for the year ended December 31, 2023 and the period from February 23, 2022 through December 31, 2022 (Successor) is presented below. There were no unvested restricted stock units for the period from January 1 through February 22, 2022 (Predecessor).
Awards subject to service or external market conditionsAwards subject to internal performance conditions
SharesWeighted average Modification Date fair valueWeighted average remaining contractual termSharesWeighted average Modification Date fair valueWeighted average remaining contractual term
Non-vested restricted share units at February 23, 2022 (Successor)— — 0— — 0
Granted during the period418,508 — 0— — 0
Vested during the period— — 0— — 0
Forfeited during the period— — 0— — 0
Non-vested restricted share units at December 31, 2022 (Successor)418,508 — 2.60— — 0
Granted during the year447,363 38.74 0117,452 41.83 0
Vested during the year (1)
(135,225)— 0— — 0
Forfeited during the year(70,210)40.11 0(16,958)41.83 0
Non-vested restricted share units at December 31, 2023 (Successor)660,436 38.98 1.78100,494 41.83 2.00
(1) 43,988 awards vested prior to the Modification Date and were cash-settled at the settlement date fair value.
The Company accounts for forfeitures as they occur. Using the straight-line method of expensing the restricted stock grants, the weighted average estimated value of the Shares calculated at the Modification Date is recognized as compensation cost in the Consolidated Statements of Operations over the period (ranging from two to three years) to the vesting date.
For the year ended December 31, 2023, the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the Company recognized share-based compensation expense of $12 million, nil, and nil, respectively. As of December 31, 2023, there was $25 million of total unrecognized share based compensation expense which will be recognized through January 2026.
v3.24.1
Related party transactions
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
As of December 31, 2023, our major related parties were affiliated companies over which we held significant influence. They included the Sonadrill and Gulfdrill joint ventures and, until February 24, 2023, when we disposed of our remaining 35% interest in PES, PES and SeaMex. PES owns 100% of SeaMex, which was also a related party until February 24, 2023, and a 50% interest in Seabras Sapura, which was a related party for periods prior to January 2022. Aquadrill (formerly Seadrill Partners) was an affiliated company until May 2021, and revenues from services provided to Aquadrill before that time are included in the Predecessor period of this note.
Prior to emerging from Chapter 11 proceedings on February 22, 2022, our related parties also included companies who were either controlled by or whose operating policies were significantly influenced by Hemen, who was a major shareholder of the Predecessor Company. On emergence, Hemen's equity interest in Seadrill substantially decreased, and as a result, companies who were either controlled by or whose policies were significantly influenced by Hemen are no longer related parties. These include SFL, Northern Ocean, Northern Drilling, Archer, Frontline, and Seatankers.
In the following sections we provide an analysis of transactions with related parties and balances outstanding with related parties.
Related party revenue
The below table provides an analysis of related party revenues for periods presented in this report.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Management fee revenues (a)
225 174 12 98 
Reimbursable revenues (b)
28 12 3 65 
Leasing revenues (c)
33 24 4 26 
Other (d)
12 6 — — 
Total related party operating revenues 298 216 19 189 
(a) Seadrill has provided management and administrative services to Sonadrill, SeaMex, and PES, and operational and technical support services to SeaMex and Sonadrill. These services were charged to our affiliates on a cost-plus mark-up or dayrate basis. Following the
disposal of our remaining 35% equity interest in PES on February 24, 2023, PES and SeaMex are no longer related parties of Seadrill and any revenue subsequent to that date has been excluded from the above results. Additionally, in the Predecessor period, we provided similar services to Aquadrill and Northern Ocean.
(b) Seadrill recognized reimbursable revenues from Sonadrill for project work on Libongos, Quenguela, and West Gemini rigs. Additionally, in the Predecessor period, Seadrill recognized reimbursable revenues from Northern Ocean for work performed to mobilize the West Mira and West Bollsta.
(c) Lease revenues earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill.
(d) On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term.
Related party operating expenses
The below table provides an analysis of related party operating expenses for periods presented in this report.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
West Bollsta lease (e)
— — — (57)
West Hercules lease (f)
— — (3)(10)
Other related party operating expenses— — — (3)
Total related party operating expenses— — (3)(70)
(e) 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.
(f) Seadrill incurred operating lease expenses 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 22 – "Leases" for details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
Related party financial items
In 2021, Seadrill recognized $1 million of interest income on an $8 million "Minimum Liquidity Shortfall" loan issued to SeaMex which was subsequently repaid. In both 2023 and 2022, there were no related party financial items.
Related party receivable balances
The below table provides an analysis of related party receivable balances for periods presented in this report.
(In $ millions)December 31, 2023December 31, 2022
Trading balances (g)
9 28 
Allowance for expected credit loss (h)
— (1)
Total related party receivables9 27 
Of which:
Amounts due from related parties - current9 27 
Amounts due from related parties - non-current— — 
Total amounts due from related parties 9 27 
(g) Trading balances as of December 31, 2023, are comprised of receivables from Sonadrill and, as of December 31, 2022, from Gulfdrill, SeaMex and PES for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(h) 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 6 – "Current expected credit losses" for details.
v3.24.1
Financial instruments and risk management
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial instruments and risk management Financial instruments and risk management
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 our management team. This may include the use of derivative instruments.
Credit risk
We have financial assets, including cash and cash equivalents, trade receivables, related party receivables, and other receivables. These assets expose us to credit risk arising from possible default by the counterparty. Most of the counterparties are creditworthy financial institutions or large oil and gas companies. We do not expect any significant loss to result from non-performance by such counterparties. We do not typically demand collateral in the normal course of business.
Credit risk is also considered as part of our expected credit loss provision. For details on how we estimate expected credit losses refer to Note 6 – "Current expected credit losses".
Concentration of risk
There is a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, DNB, and JP Morgan. We consider these risks to be remote, but, from time to time, we utilize instruments such as money market deposits to manage concentration of risk with respect to cash and cash equivalents. We also have a concentration of risk with respect to customers, including affiliated companies. For details on the customers with greater than 10% of contract revenues, refer to Note 7 – "Segment information". For details on amounts due from affiliated companies, refer to Note 26 – "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.
In July and August 2023, Seadrill issued $575 million in aggregate principal amount of the Notes, the net proceeds from which were used to prepay in full the outstanding amounts under our then-existing secured debt facilities, significantly reducing our exposure to future interest rate increases, as the majority of our debt portfolio is on a fixed interest rate. Please refer to Note 20 – "Debt" for further details on this refinancing.
v3.24.1
Fair values of financial instruments
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair values of financial instruments Fair values 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 of December 31, 2023 and December 31, 2022 are as follows:
December 31, 2023December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Liabilities
$575 million secured bond in issue (Level 1)
597 558 — — 
First Lien Senior Secured (Level 3)
— — 195 184 
Second Lien Senior Secured (Level 3)
— — 284 284 
Unsecured Convertible Bond - debt component (Level 3)
49 50 46 50 
Financial instruments categorized as level 1
Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level 3 of the hierarchy).
The fair value of the $575 million bond is based on market traded value. We have categorized this at level 1 on the fair value measurement hierarchy.
Financial instruments categorized as level 3
Upon emergence from Chapter 11 proceedings, our secured credit facilities were settled and replaced with the First Lien Facility and the
Second Lien Facility, as well as an unsecured convertible bond. The fair values attributed to the first and second lien debt were derived by discounting the future cash flows associated with each facility.
The fair value attributed to the unsecured convertible bond is bifurcated into two elements: the straight debt component is derived through a discounted cash flow approach, similar to the one applied for the first and second lien debt, and the conversion option, which is derived through an option pricing model which forecasts equity volatility and compares the potential conversion redemption against historical and implied equity movements in comparable companies in our industry. The conversion option was recorded in equity at the point the bond was issued and, therefore, has not been included in the table above.
Our cash and cash equivalents, and 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 and have not been included in the above table.
Financial instruments measured at fair value on a recurring basis
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis at December 31, 2023 and December 31, 2022 are as follows: 
As at December 31, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
697 697 480 480 
Restricted cash (Level 1)
31 31 118 118 
Interest rate cap (Level 2)
— — 5 5 
Level 1 fair value measurements
The carrying value of cash and cash equivalents and restricted cash, which are highly liquid, is a reasonable estimate of fair value and are categorized at level 1 of the fair value hierarchy.
Level 2 fair value measurements
The fair value of the interest rate cap, which matured in June 2023, was calculated using well-established independent valuation techniques and counterparty non-performance credit risk assumptions. The calculation of the credit risk with regard to the interest rate cap is subject to a number of assumptions including an assumed credit default swap rate based on our traded debt, and recovery rate, which assumes the proportion of value recovered, given an event of default. We have categorized these as level 2 of the fair value hierarchy.
v3.24.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Legal Proceedings
From time to time we are a party, as plaintiff or defendant, to lawsuits in various jurisdictions for demurrage, damages, off-hire and other claims and commercial disputes arising from the construction or operation of our drilling units, in the ordinary course of business or in connection with our acquisition or disposal activities. We recognize loss contingencies in the Consolidated Financial Statements where it is probable that an outflow of economic benefits will be required to settle an obligation, and the amount is reasonably estimable.
SFL Hercules Ltd
On March 5, 2023, Seadrill was served with a claim from SFL Hercules Ltd., filed in the Oslo District Court in Norway, relating to our redelivery of the rig West Hercules to SFL in December 2022. In its petition, SFL claims that the rig was not redelivered in the condition required under our contract with SFL. SFL, in its initial and supplemental pleadings, seeks damages in the amount of approximately NOK555 million (approximately $55 million). The court hearing is scheduled to begin in August 2024 and is expected to last for eight weeks. We continue to assess the claim and intend to vigorously defend our position.
Sonadrill fees claim
In March 2023, Seadrill was served with a claim from an individual (the "Claimant") filed in the High Court of Justice, Business and Property Courts of England and Wales, King’s Bench Division, Commercial Court. The Claimant alleges breach of contract and unjust enrichment damages of approximately $72 million related to an alleged failure by the Company to pay the Claimant a fee for services in arranging the Sonadrill joint venture. The trial is currently scheduled for the first quarter of 2025 and we intend to vigorously defend our position.
Nigerian Cabotage Act litigation
In November 2015, the Nigerian Maritime Administration and Safety Agency ("NMASA") issued a detention in respect of the rig West Capella for failure to comply with requirements of the Coastal and Inland Shipping (Cabotage) Act 2003 (the "Cabotage Act"), specifically, failure to pay a Cabotage fee of 2% on contract revenue. While the named party is Seadrill Mobile Units Nigeria Ltd (previously an Aquadrill entity, acquired by Seadrill upon the merger of Seadrill and Aquadrill) ("SMUNL"), the matter relates to three rigs: the West Capella, West Saturn and West Jupiter. SMUNL commenced proceedings in May 2016 against the Honourable Minister for Transportation, the Attorney General of the Federation and NMASA with respect to interpretation of the Cabotage Act. On June 14, 2019, the Federal High Court of Nigeria delivered a judgement finding that: (1) Drilling operations fall within the definition of "Coastal Trade" or "Cabotage" under the Cabotage 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%, or approximately $69 million, of their contract value and remit the same to NMASA. On June 24, 2019, the Court of Appeals sitting in Lagos ("COA") issued a conflicting judgment in Transocean Support Services Nigeria & Ors v NIMASA &
Anor, finding drilling rigs cannot be deemed vessels under the Cabotage Act pending appeal. Due to the volume of cases currently being handled by the COA, the Registry of the COA is yet to schedule the hearing date for the appeal. We anticipate a decision in 2024. Although we intend to strongly pursue this appeal, we cannot predict the outcome of this case.
Brazil tax audit
Seadrill Serviços de Petróleo Ltda ("Seadrill Brazil") has a long-standing tax audit relating to years 2009 and 2010, which is being litigated through the Brazilian courts. The initial court ruled in favor of Seadrill Brazil, but the appellate court reversed the lower court decision in September 2023 and ruled in favor of the tax authorities, assessing a tax and interest thereon of approximately $65 million and $10 million, respectively. We will vigorously defend our position and, in December 2023, filed an appeal to this most recent decision to higher courts, but the ultimate timing and outcome of this litigation cannot be determined. There are additional open cases relating to 2008, 2012, 2016, and 2017, where a similar principle is being contested but they are not as far advanced through the courts, for an aggregate assessed amount, including tax and interest, of approximately $86 million.
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 performance guarantees for potential liabilities that may result from drilling activities under current or previous managed rig arrangements with Sonadrill and Northern Ocean. As of December 31, 2023, we had not recognized any liabilities for these guarantees as we do not consider it probable that the guarantees will be called. The guarantees provided on behalf of Sonadrill have been capped at $1.1 billion (December 31, 2022: $1.1 billion), in the aggregate, across the three rigs operating in the joint venture on three active, and one future, contract. The guarantees provided on behalf of Northern Ocean have been capped at $100 million (December 31, 2022 : $100 million).
v3.24.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
The table below shows net income/(loss) from discontinued operations:
SuccessorPredecessor
(In $ millions, except per share data)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Net (loss)/income of Paratus Energy Services Ltd——(4)5
Net income/(loss) of KSA Business—8(29)(20)
Gain on disposal of KSA Business—276——
Exit cost associated with disposal of KSA Business—(10)——
Net income/(loss) from discontinued operations—274(33)(15)
Basic EPS: discontinued operations ($)—5.48(0.33)(0.15)
Diluted EPS: discontinued operations ($)—5.21(0.33)(0.15)
The table below analyses the cash flows from discontinued operations between our two discontinued operations:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Paratus Energy Services Ltd——(69)(18)
KSA Business—5(20)13
Net cash provided by/(used in) operating activities—5(89)(5)
Paratus Energy Services Ltd———23
KSA Business—(40)——
Net cash (used in)/provided by investing activities—(40)—23
Paratus Energy Services Ltd————
KSA Business—1620—
Net cash provided by financing activities—1620—
Disposal of interest in Paratus Energy Services Ltd
PES, formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 4 – "Chapter 11".
The sale represented a strategic shift in Seadrill's operations which had a major effect on its operations and financial results going forward and therefore we reclassified PES as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations in the comparative periods.
On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023.The net gain on disposal, which is reported within Other financial items in our Consolidated Statement of Operations, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Year ended December 31, 2023
Initial purchase price 43 
Lender incentive fee1 
Total consideration44 
Less: Book value of PES investment(31)
Less: Management incentive fee intangible(13)
Gain on disposal— 
In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings with a termination notice regarding (i) the Paratus MSA and (ii) the SeaMex MSA, respectively. The Paratus MSA terminated on November 30, 2023, and the SeaMex MSA terminated on November 17, 2023. The terminations of the Paratus MSA and SeaMex MSA did not have a material impact on the Company's financial results.
For further information on Seadrill's comprehensive restructuring, including the sale of the 65% interest in Paratus Energy Services Ltd, please refer to Note 4 – "Chapter 11".
Sale of jackup units in the Kingdom of Saudi Arabia
On September 1, 2022, Seadrill entered into a share purchase agreement with subsidiaries of ADES Arabia Holding Ltd (together, "ADES") for the sale of the entities that own and operate seven jackup units (the "Jackup Sale") in the Kingdom of Saudi Arabia (the "KSA Business"). The Jackup Sale closed on October 18, 2022, with ADES now owning the rigs AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida, and West Leda, as well as the drilling contracts related to the rigs. ADES also now employs the crews operating the rigs in Saudi Arabia.
The gain on sale, which is reported within discontinued operations in our Consolidated Statement of Operations, and the sale proceeds, which is reported in our Consolidated Statement of Cash Flows, are summarized further in the table below:
Gain on saleReceived/(paid) to date
(In $ millions)202220222023
Initial Purchase Price 628 628 — 
Adjustment for working capital, cash, and reimbursement of reactivation costs53 50 3 
Less: Deal costs(11)(11)— 
Less: Fair value of indemnities and warranties(36)(8)(25)
Net sales price634 659 (22)
Less: Book value of KSA Business(358)— — 
Total276 659 (22)
The sale represented a strategic shift in Seadrill's operations which will have a major effect on its operations and financial results going forward and therefore we reclassified the KSA Business, previously included within our Jackup segment, as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations in all periods. In addition, the assets and liabilities of the KSA Business were reclassified as held for sale as of September 1, 2022, at which point, we ceased all depreciation and amortization.
The sale completed on October 18, 2022. As such there are no assets held for sale, or liabilities associated with assets held for sale, on the Consolidated Balance Sheets for the years ended December 31, 2023 and December 31, 2022.
Major classes of line items constituting profit/(loss) of discontinued operations:
The table below summarizes the profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by the KSA Business during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues
Contract revenues— 86 18 101 
Total operating revenues— 86 18 101 
Operating expenses
Vessel and rig operating expenses— (45)(10)(64)
Depreciation and amortization— (22)(4)(28)
Selling, general and administrative expenses— (8)(1)(10)
Total operating expenses— (75)(15)(102)
Operating profit/(loss)— 11 3 (1)
Financial and other non-operating items
Reorganization items, net — — (32)(14)
Other financial items— (1)— — 
Profit/(loss) before income taxes— 10 (29)(15)
Income tax expense— (2)— (5)
Net income/(loss)— 8 (29)(20)
The table below summarizes the profit and loss statement for the PES during periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by PES during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues
Contract revenues— — 1236 
Total operating revenues— — 1236 
Operating expenses
Operating expenses— — (8)(27)
Total operating expenses— — (8)(27)
Operating profit— — 49 
Financial and other non-operating items
Interest income— — — 18
Interest expense— — (4)(77)
Share in results from associated companies (net of tax)— — (1)14
Other financial items— — (2)39
Total financial items— — (7)(6)
Profit/(loss) before income taxes— — (3)3
Income tax (expense)/benefit— — (1)2
Net (loss)/income— — (4)5 
v3.24.1
Business combination
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Business combination – Business combinations
Aquadrill acquisition
On the Closing Date, Seadrill completed the acquisition of Aquadrill, an offshore drilling rig owner. Pursuant to the Merger Agreement, Merger Sub merged with and into Aquadrill, with Aquadrill surviving the Merger as a wholly owned subsidiary of Seadrill. In connection with the Merger, and pursuant to the Merger Agreement, Seadrill exchanged consideration consisting of (i) 29.9 million Seadrill common shares, (ii) $30 million settled by tax withholding in lieu of common shares, and (iii) cash consideration of $1 million. At the Closing Date, Aquadrill unitholders represented approximately 37% of Seadrill's post-Merger issued and outstanding Shares.
As previously disclosed, the Board of Directors viewed the following factors, among others, as generally favorable in its determination and approval of the Merger: (A) the combined company is expected to (i) be in a position to serve a broader range of customers, (ii) have a more substantial presence in the offshore drilling market, (iii) take on Aquadrill drilling units without taking on a substantial cost structure, (iv) have a diversified portfolio of contract coverage and (v) given the extensive history between Aquadrill and Seadrill, be positioned to rapidly integrate the two businesses, and (B) the Seadrill management team’s familiarity with the business, assets and competitive position of Aquadrill.
As a result of the Merger, Seadrill acquired Aquadrill’s four drillships, one semi-submersible and three tender-assist units. On May 19, 2023, Seadrill entered into definitive sale and purchase agreements to sell the three tender-assist units (T-15, T-16, and West Vencedor), acquired in the Merger, with an agreed aggregate sale price of approximately $84 million. The sale completed on July 28, 2023.
In connection with this acquisition, the Company incurred $24 million and $3 million of acquisition and integration related expenses during the year ended December 31, 2023 and for the period from February 23, 2022 through December 31, 2022, respectively. These expenses are included in "Merger and integration related expenses" on the consolidated statements of operations. In addition, the Company incurred $4 million of issuance costs which have been reflected against the fair value of the Shares as a reduction to Additional paid-in capital in the consolidated statements of changes in shareholders' equity.
We used a convenience date of April 1, 2023 (the "Convenience Date") to account for this acquisition and have recorded activity from the Convenience Date in Seadrill's results for the year ended December 31, 2023.
Purchase price allocation
The Merger was accounted for as a business combination under the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") Topic 805, Business Combinations, with Seadrill being treated as the accounting acquirer. Under this method, the purchase consideration in the Merger reflects (i) the Shares issued in connection with the Merger, (ii) tax withholding liability, and (iii) cash consideration, as described above. The issued Shares were recorded at $41.62 per share, the fair value on the Closing Date. Concurrently, the assets acquired and liabilities assumed were recorded on Seadrill’s Consolidated Balance Sheets at their respective fair values. As of the date of this filing, we had completed the preliminary analysis to assign fair value to all tangible and intangible assets acquired and liabilities assumed followed by minor measurement period adjustments as a result of subsequent review. The purchase price allocation ("PPA") will be subject to further refinement and may change. The primary area of preliminary purchase price allocation subject to change relates to the valuation of accounts receivable, accounts payable, accrued expenses and other current liabilities. We expect to finalize the fair value measurements during the first quarter of 2024. Our management estimate as of the date of this filing is that the fair value of the net assets and liabilities acquired is equal to the purchase price. Thus, no goodwill or bargain purchase gain has been recognized in the financial statements during 2023.
Determining the fair values of the assets and liabilities of Aquadrill requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of Aquadrill’s drilling units and other related tangible assets. Further details regarding the valuation process are described below.
i. Drilling units
To estimate the fair value of the drilling units, management primarily relied upon the income approach. The market approach was considered to substantiate a floor value for rigs where the income approach indicated a value lower than a value in-exchange. In the application of the income approach, we utilized the discounted cash flow ("DCF") method. The DCF method involves estimating the future free cash flows of an asset and discounting these cash flows to present value. Free cash flows are generally defined as debt-free operating cash flows adjusted to reflect capital expenditure requirements.
Assumptions used in our assessment included, but were not limited to, future marketability of each drilling unit in light of the current market conditions and its current technical specifications, timing of existing and future contract awards and expected operating dayrates, operating costs, utilization rates, tax rates, discount rates, capital expenditures, market values, reactivation costs, and estimated economic useful lives. We included an allocation for corporate overhead when calculating the discounted cash flows expected to be generated from our drilling units over their remaining useful lives. The cash flows were discounted at a market participant WACC, which was derived from a blend of market participant after-tax costs of debt and market participant costs of equity, weighted by the respective percentage of debt and equity to total capital, and computed using public share price information for similar publicly traded guideline companies, certain U.S. Treasury rates, and certain risk premiums specific to the Company. The inputs and assumptions related to these assets are categorized as Level 3 in the fair value hierarchy.
ii. Drilling and management services contracts
The Company recognized intangible assets and liabilities related to drilling and management service contracts that had favorable and unfavorable terms compared to the current market at the Closing Date. The Company recorded the fair value adjustment for the off-market contract liabilities and assets to "Other current liabilities", "Other current assets", and "Other non-current assets" in the amounts of $49 million, $6 million, and $1 million respectively.
The table below summarizes the total consideration transferred at the Closing Date:
(In $ millions, except share data)Aquadrill Shares
Final Exchange Ratio (4)
As at Acquisition
Aquadrill outstanding shares as of April 3, 202320,000,000 1.4128,258,965 
Aquadrill restricted stock units122,104 1.41172,527 
Aquadrill phantom award units105,700 1.41149,349 
Aquadrill phantom appreciation rights570,000 0.70399,576 
Total Aquadrill shares converted to Seadrill shares20,797,804 28,980,417 
Company Sale Bonus (1)
1,664,743 
Total Seadrill shares eligible for purchase of Aquadrill30,645,160 
Less: Tax withholding in lieu of common shares (2)
(744,150)
Less: Seadrill shares settled in cash (3)
(34,505)
Seadrill shares issued for purchase of Aquadrill29,866,505 
Seadrill share price at April 3, 2023 market close41.62 
Consideration issued in Seadrill shares1,243 
Consideration settled by tax withholding (2)
30 
Consideration settled in cash (3)
1 
Total consideration transferred1,274 
(1) Immediately prior to the Closing Date, the Sale Bonus Award Agreement, dated as of May 24, 2021, by and between Aquadrill and Steven Newman, the Chief Executive Officer and a director of Aquadrill, was terminated and in connection with such termination at the Effective Time and in accordance with the Merger Agreement, Mr. Newman received 1,013,405 Seadrill common shares and $26 million tax withholding, paid on his behalf, in lieu of Seadrill common shares.
(2) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, the Company elected to pay $30 million of tax withholding. These Shares were settled at a per share value agreed upon between the Company and the Aquadrill board of directors.
(3) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, certain non-employee board members elected to receive $1 million cash in lieu of Seadrill common shares. These Shares were settled at a per share value agreed upon between the Company and the Aquadrill board of directors.
(4) Final exchange ratios calculated pursuant to the Merger Agreement.
The table below represents the preliminary PPA to the identifiable assets acquired and liabilities assumed at the Closing Date and subsequent adjustments made during the measurement period:
(In $ millions)As at AcquisitionMeasurement Period AdjustmentsUpdated As at Acquisition
Assets acquired:
Cash and cash equivalents51—51
Restricted cash5—5
Accounts receivable60—60
Other current assets36743
Total current assets1527159
Drilling units1,255(3)1,252
Deferred tax assets19—19
Equipment1—1
Other non-current assets5—5
Total non-current assets1,280(3)1,277
Total assets acquired1,43241,436
Liabilities assumed:
Trade accounts payable11—11
Other current liabilities69473
Total current liabilities80484
Other non-current liabilities78—78
Total non-current liabilities78—78
Total liabilities assumed1584162
Net asset acquired1,274—1,274
Post-merger operating results
The following table reflects Aquadrill's operating revenue and net income from continuing operations included in Seadrill's consolidated statement of operations subsequent to the Convenience Date.
(In $ millions)Year ended December 31, 2023
Operating revenue 383
Net income from continuing operations145
Pro forma financial information
The following unaudited pro forma summary presents the results of operations as if the Merger had occurred on February 23, 2022, the date of emergence from Chapter 11 for the Successor company. The pro forma summary uses estimates and assumptions based on information available at the time. We believe the estimates and assumptions are reasonable, however, actual results may have differed significantly from this pro forma financial information. The pro forma information does not purport to be indicative of results of operations that would have occurred had the Merger occurred on the basis assumed above, nor is such information indicative of our expected future results. The pro forma results of operations do not reflect any cost savings or other synergies that might have been achieved from combining the operations or any estimated costs that have not yet been incurred to integrate Aquadrill assets.
(In $ millions, except per share data)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022
Operating revenue1,580 1,009 
Net income/(loss) from continuing operations262(111)
Basic EPS: continuing operations ($)3.34(1.39)
Diluted EPS: continuing operations ($)3.29(1.39)
These pro forma amounts have been calculated after adjusting the results to reflect (i) the additional depreciation and amortization that would have been charged assuming the fair value adjustments to drilling units and off-market contract liabilities had been applied from February 23, 2022, (ii) certain acquisition related expenses incurred directly in connection with the Merger as if it had occurred on February 23, 2022, and (iii) removal of any pre-acquisition revenues and expenses between Seadrill and Aquadrill.
Seadrill and Aquadrill incurred total acquisition related expenses of $11 million and $5 million, respectively, of which $3 million and $2 million, respectively, were incurred during the fourth quarter of 2022. Seadrill's acquisition related expenses are included in "Merger and integration related expenses" on the consolidated statements of operations. These expenses are reflected in pro forma earnings for the period from February 23, 2022 through December 31, 2022.
On July 28, 2023, the Company completed the sale of the tender-assist units. The table below summarizes the results of operations related to the tender-assist units included in the pro forma results of operations:
(in $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022
Tender-assist units
Operating revenue1310
Loss from continuing operations(8)(3)
v3.24.1
Subsequent Events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent events Subsequent events
Share repurchase program
On November 27, 2023, Seadrill’s Board of Directors increased the Company’s aggregate share repurchase authorization, allowing the Company to repurchase up to an additional $250 million of its outstanding common shares, taking the aggregate authorization to $500 million. For the period from January 1, 2024 through March 22, 2024, Seadrill repurchased approximately 2.5 million Shares on the NYSE and the OSE, with a weighted average share price of $44.94.
v3.24.1
Accounting policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
The Consolidated Financial Statements comply with generally accepted accounting principles in the United States of America ("US GAAP") and are presented in U.S. dollars ("US dollar", "$" or "US$") rounded to the nearest million, unless stated otherwise. They include the financial statements of Seadrill Limited and its consolidated subsidiaries.
In January 2022, we disposed of 65% of our equity interest in Paratus Energy Services Ltd ("PES") and in October 2022, we disposed of seven jackup units with contract in the Kingdom of Saudi Arabia (the "KSA Business"). Both transactions represented strategic shifts in Seadrill's operations which were deemed to have a major effect on its operations and financial results in 2022 and going forward and therefore both were reclassified as discontinued operations. As such, their results were reported separately in comparative periods.
Following the sale of the KSA Business, our organizational structure was simplified, consolidating our operations into a single segment. In light of this change, the information provided to the Chief Operating Decision Maker ("CODM") has been adapted to reflect the updated operational structure during the year ended December 31, 2023. As a result, we have updated the reportable segments disclosed externally from Harsh Environment Floaters, and Jackups to a single operating segment. This has been reflected for all periods covered by the report.
The financial information presented assumes we will continue as a going concern, able to realize our assets and discharge liabilities in the normal course of business as they come due.
Basis of consolidation
Basis of consolidation
We consolidate companies where we control over 50% of voting rights, and entities where we hold a variable interest and are the primary beneficiary. A variable interest entity ("VIE") is a legal entity where equity at risk is not enough to finance its activities, or equity interest holders lack power to direct activities or receive expected returns. We are the primary beneficiary of a VIE when we have the power to direct activities that impact economic performance and the right to receive benefits or absorb losses. We exclude subsidiaries, even if fully owned, if we are not the primary beneficiary under the variable interest model. All intercompany balances and transactions have been eliminated.
Fresh start accounting
Fresh start accounting
Seadrill qualified for fresh start accounting following its emergence from bankruptcy on the Effective Date, in accordance with the provisions set forth in ASC 852. This resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or loss as of the Effective Date.
Under fresh start accounting, Seadrill allocated the court approved reorganization value to its individual assets based on their estimated fair values on the Effective Date. Reorganization value represents the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Seadrill will continue to present financial information for any periods before the adoption of fresh start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as required by ASC Topic 205, Presentation of Financial Statements. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor Companies.
Revenue from contracts with customers, and contract assets and liabilities
Revenue from contracts with customers
The activities that primarily drive the revenue earned from our drilling contracts include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities or modifications required for the contract with a customer. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services as a single performance obligation that is (i) satisfied over time and (ii) comprised of a series of distinct time increments of service.
We recognize revenues for activities that correspond to a distinct time increment of service within the contract term in the period when the services are performed. We recognize consideration for activities that are (i) not distinct within the context of our contracts and (ii) do not correspond to a distinct time increment of service, ratably over the estimated contract term.
We determine the total transaction price for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. The amount estimated for variable consideration may be constrained and is only included in the transaction price to the extent that it is probable that a significant reversal of previously recognized revenue will not occur throughout the term of the contract. When determining if variable consideration should be constrained, we consider whether there are factors outside of our control that could result in a significant reversal of revenue as well as the likelihood and magnitude of a potential reversal of revenue. We re-assess these estimates each reporting period as required. For further information please refer to Note 8 – "Revenue from contracts with customers".
Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly incremental service it relates to. Revenue is recognized in line with the contractual rate billed for the services provided for any given hour.
We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization of our rigs. These activities are not considered to be distinct within the context of the contract. The associated revenue is allocated to the overall performance obligation and recognized ratably over the expected term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to contract drilling revenue as services are rendered over the initial term of the related drilling contract.
We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the demobilization of our rigs. Demobilization revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized over the term of the contract. In most of our contracts, there is uncertainty as to the likelihood and amount of expected demobilization revenue to be received. For example, the amount may vary dependent upon whether or not the rig has additional contracted work following the contract. Therefore, the estimate for such revenue may be constrained, as described above, depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on past experience and knowledge of the market conditions.
We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer, at a point in time, as "Reimbursable revenues" in our Consolidated Statements of Operations.
In some countries, the local government or taxing authority may assess taxes on our revenues. Such taxes may include sales taxes, use taxes, value-added taxes, gross receipts taxes and excise taxes. We generally record tax-assessed revenue transactions on a net basis.
Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of contracted rigs represent costs of fulfilling a contract as they relate directly to a contract, enhance resources that will be used in satisfying our performance obligations in the future and are expected to be recovered. Such costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract.
Any costs incurred for delays in commencement of drilling contracts are treated as variable consideration that is allocated to the firm term of the drilling contract.
Contract assets and liabilities
Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. If we recognize revenue ahead of this point, we also recognize a contract asset. Contract assets balances relate primarily to demobilization revenues recognized during the period associated with probable future demobilization activities.
Contract liabilities include payments received for mobilization, rig preparation and upgrade activities which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract.
Arrangements with MSA Managers
Arrangements with MSA Managers
On completion of the Aquadrill acquisition on the Closing Date, Seadrill assumed arrangements related to the management of the former Aquadrill rigs. These existing arrangements were with offshore drilling contractors including affiliates of Diamond Offshore Drilling, Inc., Vantage Drilling International, and Energy Drilling Management Pte Ltd. (collectively, the "MSA Managers"), governed by master service or similar agreements ("MSAs").
Under the MSAs, certain former Aquadrill rigs are chartered to an MSA Manager who then contracts with a third-party customer to provide drilling services, providing all necessary crew and other required services and supplies needed to provide those services. The charter arrangements are structured such that all revenues from the end customer and all contract expenses are passed through to Seadrill. The MSA Manager also charges a fee for the services provided. While this fee is variable to align contract objectives between us and the Manager, the majority of economic risk and reward over the arrangement resides with Seadrill.
For accounting purposes, we consider each arrangement as a single unified contract between Seadrill and the end customer with the MSA Manager acting as both a lease broker and subcontractor in providing services to the end customer. Similar to arrangements where Seadrill provides drilling services directly to an end-customer using its owned rigs, the arrangement has both lease and non-lease components. We apply the practical expedient per ASC 842-10-15-42 which permits us to account for the arrangement based on the predominant component in the arrangement, which we consider to be the non-lease component.
Accordingly, we account for these arrangements under the guidance of ASC 606 – Revenue from Contracts with Customers. We recognize all revenues from the end-customers and all operating expenditures incurred by the MSA Manager and passed back to us, together with all MSA Manager fees, as operating expenses. In addition, where the MSA Manager incurs capital or long-term-maintenance expenditures on the units, these costs are also passed to us and accounted for as drilling unit additions. More generally, the accounting for revenue and expenses related to these arrangements follows our accounting policies.
Management contract revenues and other revenues
Management contract revenues
Seadrill has provided management and operational support services to Sonadrill, SeaMex, and in the Predecessor period, Northern Ocean and Aquadrill. These services are typically charged on either a cost-plus or dayrate basis. In addition, Seadrill has recorded reimbursable revenues on certain project work conducted on behalf of such parties.
Other revenues
Other revenues comprise charter income from rigs leased to Gulfdrill and Sonadrill, revenue from the sale of inventories, and termination fees earned when drilling contracts are terminated before the contract end date. Termination fees are recognized daily as any contingencies or uncertainties are resolved.
Vessel and Rig Operating Expenses
Vessel and Rig Operating Expenses
Vessel and rig operating expenses are costs associated with operating a drilling unit that is either in operation or stacked and include the remuneration of offshore crews and related costs, rig supplies, insurance costs, expenses for repairs and maintenance and costs for onshore support personnel. We expense such costs as incurred.
Mobilization and demobilization expenses
Mobilization and demobilization expenses
We incur costs to prepare a drilling unit for a new customer contract and to move the rig to a new contract location. We capitalize the mobilization and preparation costs for a rig's first contract as a part of the rig value and recognize these costs as depreciation expense over the expected useful life of the rig (i.e. 30 years). For subsequent contracts, we defer these costs over the expected contract term (see deferred contract costs above), unless we do not expect the costs to be recoverable, in which case we expense them as incurred.
We incur costs to transfer a drilling unit to a safe harbor or different geographic area at the end of a contract. We expense such demobilization costs as incurred. We also expense any costs incurred to relocate drilling units that are not under contract.
Repairs, maintenance and periodic surveys
Repairs, maintenance and periodic surveys
Costs related to periodic overhauls of drilling units are capitalized and amortized over the anticipated period between overhauls, which is generally five years. Related costs are primarily shipyard costs and the cost of employees directly involved in the work. We include amortization costs for periodic overhauls in depreciation expense. Costs for other repair and maintenance activities are included in vessel and rig operating expenses and are expensed as incurred.
Income taxes
Income taxes
Seadrill is a Bermuda company that has subsidiaries and affiliates in various jurisdictions. As of December 31, 2023, Seadrill and our Bermudan subsidiaries and affiliates are not required to pay taxes in Bermuda on ordinary income or capital gains as they qualify as exempted companies. Certain subsidiaries operate in other jurisdictions where taxes are imposed. Consequently, income taxes have been recorded in these jurisdictions when appropriate. Our income tax expense is based on our income and statutory tax rates in the various jurisdictions in which we operate. We provide for income taxes based on the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Refer to Note 13 – "Taxation".
The determination and evaluation of our annual group income tax provision involves interpretation of tax laws in various jurisdictions in which we operate and requires significant judgment and use of estimates and assumptions regarding significant future events, such as amounts, timing and character of income, deductions and tax credits. There are certain transactions for which the ultimate tax determination is unclear due to uncertainty in relation to the interpretation of tax law that arises in the ordinary course of business.
We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit by relevant tax authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While we believe we have appropriate support for the positions taken on our tax returns, we regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes.
Income tax expense consists of taxes currently payable and changes in deferred tax assets and liabilities calculated according to local tax rules. We recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the Consolidated Statement of
Operations as income tax expense (or benefit) in the period of sale or transfer occurs.
Current income tax expense reflects an estimate of our income tax liability for the current year, withholding taxes, changes in prior year tax estimates as tax returns are filed, or from tax audit adjustments.
Deferred tax assets and liabilities are based on temporary differences that arise between carrying values used for financial reporting purposes and amounts used for taxation purposes of assets and liabilities and the future tax benefits of tax loss carry forwards.
Our deferred tax expense or benefit represents the change in the balance of deferred tax assets or liabilities as reflected on the balance sheet. Valuation allowances are determined to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To determine the amount of deferred tax assets and liabilities, as well as the valuation allowances, we must make estimates and certain assumptions regarding future taxable income, including where our drilling units are expected to be deployed, as well as other assumptions related to our future tax position. A change in such estimates and assumptions, along with any changes in tax laws, could require us to adjust the deferred tax assets, liabilities, or valuation allowances. The amount of deferred tax provided is based upon the expected manner of settlement of the carrying amount of assets and liabilities, using tax rates enacted at the balance sheet date. The impact of tax law changes is recognized in periods when the change is enacted.
Foreign currencies
Foreign currencies
The majority of our revenues and expenses are denominated in U.S. dollars and therefore the majority of our subsidiaries use U.S. dollars as their functional currency. Our reporting currency is also U.S. dollars. For subsidiaries with functional currencies other than U.S. dollars, we use the current method of translation whereby items of income and expense are translated using the average exchange rate for the period and the assets and liabilities are translated using the year-end exchange rate. Foreign currency translation gains or losses on consolidation are recorded as a separate component of other comprehensive income in shareholders' equity.
Transactions in foreign currencies are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency denominated monetary assets and liabilities are remeasured using rates of exchange at the balance sheet date. Gains and losses on foreign currency transactions are included within "Other financial and non-operating items" in the Consolidated Statements of Operations.
Earnings/(loss) per share
Earnings/(loss) per share
Basic earnings/(loss) per share ("EPS/LPS") is calculated based on the income or loss for the period available to common shareholders divided by the weighted average number of Shares outstanding. Diluted income or loss per share includes the effect of the assumed conversion of potentially dilutive instruments such as our restricted stock units, performance stock units and convertible bond. The determination of dilutive income or loss per share may require us to make adjustments to net income or loss and the weighted average Shares outstanding.
Fair value measurements
Fair value measurements
We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Hierarchy Level 2 inputs are significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets. Hierarchy Level 3 inputs are significant unobservable inputs, including those that require considerable judgment for which there is little or no market data. When a valuation requires multiple input levels, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.
Current and non-current classification
Current and non-current classification
Generally, assets and liabilities (excluding deferred taxes and liabilities subject to compromise) are classified as current assets and liabilities respectively if their maturity is within one year of the balance sheet date. In addition, we classify any derivative financial instruments as current. Current liabilities will include where amounts from lenders are payable on demand at their discretion due to event of default clauses being met.
Generally, assets and liabilities are classified as non-current assets and liabilities respectively if their maturity is beyond one year of the balance sheet date. In addition, we classify loan fees based on the classification of the associated debt principal.
Cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash
Cash and cash equivalents consist of cash, bank deposits and highly liquid financial instruments with maturities of three months or less. Amounts are presented net of allowances for credit losses.
Restricted cash Restricted cash consists of bank deposits which are subject to restrictions due to legislation, regulation or contractual arrangements. Restricted cash amounts that are expected to be used after one year from the balance sheet date are classified as non-current assets. Amounts are presented net of allowances for credit losses, which are assessed based on consideration of maturity date and the counterparty's credit rating.
Receivables and allowance for credit losses
Receivables
Receivables, including accounts receivable, are recorded in the balance sheet at their nominal amount net of expected credit losses and write-offs. Interest income on receivables is recognized as earned.
Allowance for credit losses
The current expected credit loss ("CECL") model requires recognition of expected credit losses over the life of a financial asset upon its
initial recognition. Periods prior to adoption are presented under the previous guidance with an allowance against a receivable balance recognized only if it was probable that we would not recover the full amount due to us. We determined doubtful accounts on a case-by-case basis and considered the financial condition of the customer as well as specific circumstances related to the receivable such as customer disputes.
The CECL model contemplates a broader range of information to estimate expected credit losses over the contractual lifetime of an asset. It also requires consideration of the risk of loss even if it is remote. We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts of events which may affect the collectability. We estimate the CECL allowance using a "probability-of-default" model, calculated by multiplying the exposure at default by the probability of default by the loss given default by a risk overlay multiplier over the life of the financial instrument (as defined by ASU 2016-13). Our critical judgements relate to internal credit ratings and maturities used to determine probability of default, the subordination of debt to determine loss given default and the performance status of the receivable that can impact any management overlay. We determine management risk overlay based on management assessment of defaults, overdue amounts and other observable events that provide information on collection. Our internal credit ratings are based on the Moody’s scorecard approach (based on several quantitative and qualitative factors) and our approach relies on statistical data from Moody’s ‘Default and Ratings Analytics’ to derive the expected credit loss. We monitor the credit quality of receivables by re-assessing credit ratings, assumed maturities and probability-of-default on a quarterly basis. Due to the inherent uncertainty around these judgmental areas, it is at least reasonably possible that a material change in the CECL allowance can occur in the near term. We grouped financial assets with similar risk characteristics based on their contractual terms, historical credit loss pattern, internal and external credit ratings, maturity, collateral type, past due status and other relevant factors.
The CECL model applies to external trade receivables, related party receivables and other financial assets measured at amortized cost as well as to off-balance sheet credit exposures not accounted for as insurance. We have elected to calculate expected credit losses on the combined balance of both the amortized cost and accrued interest from the unpaid principal balance.
The allowance for credit losses reflects the net amount expected to be collected on the financial asset. Any change in credit allowance is reflected in the Consolidated Statement of Operations based on the nature of the financial asset receivable.
Amounts are written off against the allowance in the period when efforts to collect a balance have been exhausted. Any write-offs in excess of credit allowance by category of financial asset reduces the asset's carrying amount and is reflected in the Consolidated Statement of Operations. Expected recoveries will not exceed the amounts previously written-off or current credit loss allowance by financial asset category and are recognized in the Consolidated Statement of Operations in the period of receipt.
Related parties
Related parties
Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence. 10% shareholders that do not have significant influence are also considered to be related parties. Amounts receivable from related parties are presented net of allowances for expected credit losses and write-offs. Interest income on receivables is recognized as earned.
Equity investments
Equity investments
Investments in common stock are accounted for using the equity method if we have the ability to significantly influence, but not control, the investee. Significant influence is presumed to exist if our ownership interest in the voting stock of the investee is between 20% and 50%. We also consider other factors such as representation on the investee’s board of directors and the nature of commercial arrangements, We classify our equity investees as "Investments in Associated Companies" on the Consolidated Balance Sheets. We recognize our share of earnings or losses from our equity method investments in the Consolidated Statements of Operations as "Share in results from associated companies". Refer to Note 17 – "Investment in associated companies".
We assess our equity method investments for impairment at each reporting period when events or circumstances suggest that the carrying amount of the investments may be impaired. We record an impairment charge for other-than-temporary declines in value when the value is not anticipated to recover above the cost within a reasonable period after the measurement date. We consider (1) the length of time and extent to which fair value is below carrying value, (2) the financial condition and near-term prospects of the investee, and (3) our intent and ability to hold the investment until any anticipated recovery. If an impairment loss is recognized, subsequent recoveries in value are not reflected in earnings until sale of the equity method investee occurs.
All other equity investments including investments that do not give us the ability to exercise significant influence and investments in equity instruments other than common stock, are accounted for at fair value, if readily determinable. We classify our other equity investments as "marketable securities" with gains or losses on remeasurement to fair value recognized within "Other financial and non-operating items" in the Consolidated Statements of Operations. If we cannot readily ascertain the fair value, we record the investment at cost less impairment. We perform a qualitative impairment analysis for our equity investments recorded at cost at each reporting period to evaluate whether an event or change in circumstances has occurred that indicates that the investment is impaired. We record an impairment loss to the extent that the carrying amount of the investment exceeds its estimated fair value
Held For Sale and Discontinued Operations
Held For Sale and Discontinued Operations
Assets are classified as held for sale when all of the following criteria are met: management commits to a plan to sell the asset (disposal group), the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets, an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated, the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. The term probable refers to a future sale that is likely to occur, the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell.
Management assesses whether an operation should be reported as discontinued operations under the three criteria set out in ASC 205:1) a discontinued operation may include a component of the business or group of components of the business, 2) if the disposal represents a strategic shift that has (or will have) a major effect on an the business's operations and financial results, and 3) examples of a strategic shift that has (or will have) a major effect on an the business's operations and financial results could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of the business. When an operation meets these criteria, the results of that operation are reported as "discontinued operations" in the statement of operations and all comparative periods of the consolidated financial statements and associated notes are recast for this classification.
Drilling units and equipment
Drilling units
Rigs, vessels and related equipment are recorded at historical cost less accumulated depreciation. The cost of these assets, less estimated residual value is depreciated on a straight-line basis over their estimated remaining economic useful lives. Rig upgrade costs incurred that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rigs. The estimated economic useful life of our floaters and jackup rigs, when new, is 30 years.
Drilling units acquired in a business combination are measured at fair value at the date of acquisition. Cost of property and equipment sold or retired, with the related accumulated depreciation and impairment is removed from the Consolidated Balance Sheet, and resulting gains or losses are included in the Consolidated Statement of Operations.
We re-assess the remaining useful lives of our drilling units when events occur which may impact our assessment of their remaining useful lives. These include changes in the operating condition or functional capability of our rigs, technological advances, changes in market and economic conditions as well as changes in laws or regulations affecting the drilling industry.
Equipment
Equipment is recorded at historical cost less accumulated depreciation and impairment and is depreciated over its estimated remaining useful life. The estimated economic useful life of equipment, when new, is between three and five years depending on the type of asset.
Rig activation project costs
Rig reactivation project costs
Most reactivation costs are capitalized. The incremental cost of equipment de-preservation 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 administrative and overhead costs related to reactivation projects are accounted for as operating expenses.
Rig upgrade costs incurred as part of reactivation projects that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rig. Costs incurred as part of reactivation projects 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 contract period.
The cost of reactivation project related long-term maintenance activities such as major classification surveys and other major certifications are capitalized and depreciated over a period of between two and five years (depending on the period covered by the re-certification).
Leases, Lessee
Lessee - When we enter into a new contract, or modify an existing contract, we identify whether that contract has a finance or operating lease component. We do not have any leases classified as finance leases. We determine the lease commencement date by reference to the date the rig (or other leased asset) is available for use and transfer of control has occurred from the lessor. At the lease commencement date, we measure and recognize a lease liability and a right of use ("ROU") asset in the financial statements. The lease liability is measured at the present value of the lease payments not yet paid, discounted using the estimated incremental borrowing rate at lease commencement. The ROU asset is measured at the initial measurement of the lease liability, plus any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred by us.
After the commencement date, we adjust the carrying amount of the lease liability by the amount of payments made in the period as well as the unwinding of the discount over the lease term using the effective interest method. After commencement date, we amortize the ROU asset by the amount required to keep total lease expense including interest constant (straight-line over the lease term).
Seadrill assesses ROU assets for impairment and recognizes any impairment loss in accordance with the accounting policy on impairment of long-lived assets.
We applied the following significant assumptions and judgments in accounting for our leases.
•We apply judgment in determining whether a contract contains a lease or a lease component as defined by Topic 842.
•We have elected to combine leases and non-lease components. As a result, we do not allocate our consideration between leases and non-lease components.
•The discount rate applied to our operating leases is our incremental borrowing rate. We estimated our incremental borrowing rate based on the rate for our traded debt.
•Within the terms and conditions of some of our operating leases we have options to extend or terminate the lease. In instances where we are reasonably certain to exercise available options to extend or terminate, then the option is included in determining the appropriate lease term to apply.
•Where a leasing arrangement is a failed sale and leaseback transaction as no transfer of control has occurred as defined by Topic 606, any monies received will be treated as a financing transaction.
Leases, Lessor Lessor - When we enter into a new contract, or modify an existing contract, we identify whether that contract has a sales-type, direct financing or operating lease. We do not have any leases classified as sales-type or direct financing. For our operating leases, the underlying asset remains on the balance sheet and we record periodic depreciation expense and lease revenue.
Impairment of long-lived assets
Impairment of long-lived assets
We review the carrying value of our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be appropriate. We first assess recoverability of the carrying value of the asset by estimating the undiscounted future net cash flows expected to be generated from the asset, including eventual disposal. If the undiscounted future net cash flows are less than the carrying value of the asset, then we compare the carrying value of the asset with the discounted future net cash flows, using a relevant weighted-average cost of capital. The impairment loss to be recognized during the period, is the amount by which the carrying value of the asset exceeds the discounted future net cash flows.
Other intangible assets and liabilities
Other intangible assets and liabilities
Intangible assets and liabilities were recorded at fair value on the date of Seadrill's emergence from Chapter 11 in February 2022 and on acquisition of Aquadrill in April 2023. The amounts of these assets and liabilities less any estimated residual value are amortized on a straight-line basis over the estimated remaining economic useful life or contractual period. We classify amortization of these intangible assets and liabilities within operating expenses. Our intangible assets include favorable and unfavorable drilling contracts, management services contracts and management incentive fees. In accordance with ASC 360, our intangible assets are reviewed for impairment when indicators of impairment are present, which include events or changes in circumstances that indicate that the carrying amount of an asset may not be recoverable. In the event an impairment loss is recognized, the adjusted carrying amount of the intangible asset is its new accounting basis. Refer to Note 16 – "Other current and non-current assets". Our intangible liabilities include unfavorable drilling contracts and unfavorable leasehold improvements.
Debt
Debt
At the inception of a term debt arrangement, or whenever we make the initial drawdown on a revolving debt arrangement, we incur a liability for the principal to be repaid. Debt issuance costs and lender fees related to the term loan are netted against the liability and amortized over the term of the loan. Issuance costs and lender fees related to the revolving debt arrangement are amortized straight-line over the term of the revolver.
Pension benefits
Pension benefits
We make contributions to personal defined contribution plans. These are charged as operational expenses as they become payable. Some of our Norwegian employees are covered by defined benefit plans. The ongoing liability for these schemes is not material and therefore disclosures related to these schemes have not been presented.
Loss contingencies
Loss contingencies
We recognize a loss contingency in the Consolidated Balance Sheets where we have a present obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount is reasonably estimable.
Share repurchases
Share repurchases
Repurchased Shares are recognized at cost as a component of shareholders' equity. If our Shares are acquired for purposes other than retirement, or if ultimate disposition has not yet been decided, the cost of the Shares is recognized as a direct reduction in shareholders' equity as treasury stock. At the point where it is deemed reasonably certain that the acquired Shares will be cancelled/retired, the nominal value of the Shares is recorded as a reduction in share capital with the excess paid over the nominal value recorded as a reduction in additional paid in capital ("APIC").
Share-based compensation
Share-based compensation
After emerging from Chapter 11 in February 2022, we made awards of restricted stock units ("RSUs") and performance stock units ("PSUs") under the Management Incentive Plan (as defined herein) (see Note 25 – "Share based compensation"). We account for our share based compensation in accordance with ASC 718, which utilizes a "modified grant-date" approach, where the fair value of an equity award is estimated on the grant date without regard to service or performance conditions. The subsequent accounting then depends on whether the award is classified as equity settled or liability settled, based on the conditions provided in ASC 718. If any of the conditions set out in ASC 718 are met, we classify the award as liability settled, otherwise the award is classified as equity settled. The fair value of equity settled awards is fixed on the grant date and not remeasured unless the award is modified. The fair value of liability settled awards is remeasured at the end of each reporting period until settlement. The fair value is recorded as operating expense over the service period for all awards that vest. No cost is recorded for awards that do not vest because service conditions are not satisfied. We account for forfeitures on an actual basis.
Guarantees
Guarantees
Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued and reported in "Other current liabilities" and "Other non-current liabilities". If it becomes probable that we will have to perform under a guarantee, we remeasure the liability if the amount of the loss can be reasonably estimated. Financial guarantees written are assessed for credit losses and any allowance is presented as a liability for off-balance sheet credit exposures where the balance exceeds the collateral provided over the remaining instrument life. The allowance is assessed at the individual guarantee level, calculated by multiplying the balance exposed on default by the probability of default and loss given default over the term of the guarantee.
Business combinations
Business Combinations
We account for acquisitions in accordance with ASC 805 - Business Combinations. When a transaction qualifies as a business combination under ASC 805 because (i) the acquiree meets the definition of a business and (ii) Seadrill as the acquirer obtains control of an acquiree, the acquisition method is used and the identifiable assets acquired and liabilities assumed are recognized at fair value on the acquisition date. Under ASC 805, the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed is recognized as an asset referred to as goodwill. If the fair value of the net assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized in the Consolidated Statement of Operations at the acquisition date.
Sale of Subsidiaries or Group of Assets
Sale of Subsidiaries or Groups of Assets
We account for the sale of a subsidiary or group of assets in accordance with ASC 810 - Consolidations. When we sell a subsidiary or group of assets, we recognize a gain or loss measured as the difference between 1) the aggregate of (i) the fair value of any consideration received, (ii) the fair value of any retained noncontrolling investment in the former subsidiary or group of assets & (iii) the carrying amount of any noncontrolling interest in the former subsidiary; and 2) the carrying amount of the former subsidiary’s assets and liabilities or the carrying amount of the group of assets. Consideration transferred is the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred by the acquirer to Seadrill, and the equity interests issued by the acquirer to Seadrill, but is net of any liabilities incurred by Seadrill. The gain or loss on sale is net of any costs to sell the subsidiary or group of assets.
Recently adopted and issued accounting standards
1) Recently adopted accounting standards
ASU 2023-05 - Joint Venture Formations (Subtopic 805-60)
To reduce diversity in practice and provide decision-useful information to a joint venture’s investors, the Board decided to require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). This does not have a material impact on the financial statements.
2) Recently issued accounting standards
ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU No. 2023-07, Segment Disclosures (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Board is issuing this update to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. As a result of this update, Seadrill will need to consider adding other measures used by the CODM to assess performance to its segment note. The impacts are yet to be fully assessed.
ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation and information on income taxes paid. The new requirement is effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively, with early adoption permitted. Upon adoption, this standard will require additional disclosures to be included in our financial statements. The impacts are yet to be fully assessed.
SEC Rule - The Enhancement and Standardization of Climate-Related Disclosures for Investors (Release Nos. 33-11275; 34-99678; File No. S7-10-22)
On March 6, 2024, the SEC adopted final rules designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The new rules include disclosures relating to climate-related risks and risk management as well as the board and management’s governance of such risks. In addition, the rules include requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. Larger registrants will also be required to disclose information about greenhouse gas emissions, which will be subject to a phased-in assurance requirement. The final rules include a phased-in compliance period beginning with the 2025 fiscal year for large accelerated filers. The impacts are yet to be fully assessed.
v3.24.1
Chapter 11 (Tables)
 12 Months Ended
Dec. 31, 2023
Reorganizations [Abstract]  
Schedule of allocation of shares The breakout shown below shows the equity allocation before and after the conversion of the Convertible Bond.
Recipient of SharesNumber of shares% AllocationEquity dilution on conversion of convertible bond
Allocation to predecessor senior secured lenders41,499,99983.00 %78.85 %
Allocation to new money lenders - holders of subscription rights6,250,00112.50 %11.87 %
Allocation to new money lenders - backstop parties2,125,0004.25 %4.04 %
Allocation to predecessor shareholders124,9980.25 %0.24 %
Allocation to convertible bondholder— — %5.00 %
Total shares issued on emergence49,999,998 100.00 %100.00 %
Liabilities subject to compromise
Liabilities subject to compromise prior to emergence from Chapter 11 proceedings, as presented on the consolidated balance sheet at February 22, 2022 immediately prior to emergence, included the following:
(In $ millions)February 22, 2022 (Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amount due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119 
Discontinued operations118 
Schedule of reorganization items
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on settlement of liabilities subject to compromise (a)
——3,581—
Fresh Start valuation adjustments (b)
——242—
Loss on deconsolidation of Paratus Energy Services (c)
——(112)—
Advisory and professional fees (d)
—(15)(44)(127)
Expense of predecessor Directors & Officers insurance policy——(17)—
Remeasurement of terminated lease to allowed claim
———(186)
Interest income on surplus cash
——13
Total reorganization items, net
—(15)3,651(310)
Attributable to:
Continuing operations—(15)3,683(296)
Discontinued operations——(32)(14)
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 Ltd. Refer to Note 5 – "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 December 31, 2023 and 2022 (Successor) and the related adjustments were recorded in the Consolidated Statements of Operations in the Predecessor. Refer to Note 5 – "Fresh Start accounting" for further information.
c.     Loss on deconsolidation of Paratus Energy Services Ltd
The loss on deconsolidation reflects the impact of the sale of 65% of Seadrill's interest in Paratus Energy Services Ltd (formerly NSNCo), as we deconsolidated the carrying value of the net assets of Paratus and recorded the 35% retained interest at fair value. The difference between the net assets deconsolidated and retained 35% interest represents a loss on deconsolidation.
(In $ millions)January 20, 2022
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022(152)
Fair value of retained 35% interest in Paratus Energy Services Ltd
56
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal(16)
Loss on deconsolidation of Paratus Energy Services Ltd(112)
d.     Advisory and professional fees
Professional and advisory fees incurred for post-petition Chapter 11 expenses. Professional and advisory expenses have been incurred post-emergence but relate to our Chapter 11 proceedings.
v3.24.1
Fresh Start Accounting (Tables)
 12 Months Ended
Dec. 31, 2023
Reorganizations [Abstract]  
Reconciliation of enterprise value and reorganization value
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
Fresh-start adjustments The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair value and significant assumptions or inputs.
February 22, 2022
February 23, 2022
(In $ millions)
PredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
ASSETS
Current assets
Cash and cash equivalents26274(a)—336
Restricted cash135(50)(b)—85
Accounts receivable, net169——169
Amount due from related parties, net42——42
Asset held for sale - current63—11(k)74
Other current assets194(17)(c)20(k)197
Total current assets865731903
Non-current assets
Investment in associated companies81—(17)(l)64
Drilling units1,434(175)(d)316(m)1,575
Restricted cash69——69
Deferred tax assets8—1(n)9
Equipment11—(2)(o)9
Asset held for sale - non-current345—(34)(m,p)311
Other non-current assets13—26(p)39
Total non-current assets1,961(175)2902,076
Total assets2,826(168)3212,979
LIABILITIES AND SHAREHOLDERS'S EQUITY
Current liabilities
Trade accounts payable53——53
Liabilities associated with asset held for sale - current64——64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)——
Liabilities subject to compromise associated with asset held for sale118(118)(f)——
Non-current liabilities
Long-term debt—951(g)—951
Deferred tax liabilities7—(1)(r)6
Liabilities associated with asset held for sale - non-current2——2
Other non-current liabilities108—63(s)171
Total non-current liabilities117951621,130
SHAREHOLDERS' EQUITY
Predecessor common shares of par value10(10)(h)——
Predecessor additional paid-in capital3,504(3,504)(h)——
Accumulated other comprehensive loss(1)1(h)——
Retained (deficit)/earnings(7,322)7,080(i)242(t)—
Successor common shares of par value————
Successor additional paid-in capital—1,499(j)—1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and shareholders' equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation Ltd under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise6,237
Attributable to:
Continuing operations6,119
Discontinued operations118
Payment of the AOD cash out option(116)
Issuance of the Second Lien Facility(717)
Premium associated with the Term Loan Facility(9)
Debt issuance costs(30)
Payment of the rig sale proceeds(45)
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid(27)
Issuance of Shares to holders of Prepetition Credit Agreement claims(1,244)
Issuance of Shares to the Rights Offering Participants(187)
Issuance of Shares associated with the Equity Commitment Premium(64)
Derecognition of West Linus rig and return of cash collateral
(182)
Reversal of the release of certain general unsecured operating accruals(35)
Pre-tax gain on settlement of liabilities subject to compromise3,581
(g)Reflects the changes in long-term debt for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Issuance of the Term Loan Facility175
Issuance of the Second Lien Facility683
Issuance of the Convertible Bond50
Record the premium on the Term Loan Facility and Second Lien Facility43
Change in long-term debt
951
(h)Reflects the cancellation of the Predecessor’s common shares, additional paid in capital, and accumulated other comprehensive income.
(i)Reflects the cumulative net impact on retained loss as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Pre-tax gain on settlement of liabilities subject to compromise3,581
Release of general unsecured operating accruals35
Payment of success fees recognized on the Effective Date(28)
Expense of Predecessor Directors & Officers insurance policy(17)
Impact to net income3,571
Cancellation of Predecessor common shares and additional paid in capital3,513
Issuance of Shares to Predecessor equity holders(4)
Net impact to retained loss7,080
(j)Reflects the reorganization adjustments made to the Successor additional paid-in capital:
(In $ millions)
February 22, 2022
(Predecessor)
Fair value of Shares issued to holders of Prepetition Credit Agreement claims1,456
Fair value of Shares issued to Predecessor equity holders4
Fair value of the conversion option on the Convertible Bond39
Successor additional paid-in capital
1,499
Fresh Start Adjustments
(k)Reflects the fair value adjustment to other current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts68
Write-off of current portion of deferred mobilization costs held at amortized cost(15)
Off-market right-of-use asset adjustment for the West Hercules and West Linus
(22)
Change in other current assets31
Attributable to:
Continuing operations20
Discontinued operations11
(l)Reflects the fair value adjustment to the investments in PES of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.24.1
Current expected credit losses (Tables)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Movement in allowance for credit losses and credit loss expense
The below table shows the classification of the credit loss expense within the Consolidated Statements of Operations.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Management contract credit/(expense)1 (1)1 (36)
Other financial items credit— — — 2 
Total1 (1)1 (34)
v3.24.1
Segment information (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of revenues and fixed assets by geographic area
Revenues are attributed to geographical areas based on the country where the revenues are generated. The following presents our revenues and fixed assets by geographic area:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
United States446 146 20 105 
Brazil343 95 19 121 
Angola271 220 43 125 
Norway213 231 78 486 
Canada— 98 — — 
Others (1)
229 53 9 70 
Total revenue1,502 843 169 907 
(1)Other countries represent countries each with less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (2)
Drilling unit fixed assets by geographic area based on location as of the end of the year are as follows:
(In $ millions)December 31, 2023December 31, 2022
United States959 275 
Brazil719 714 
Norway420 312 
Others (3)
760 367 
Total2,858 1,668 
(2)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.
(3)Other countries represent countries in which we operate that individually had fixed assets representing less than 10% of total fixed assets for any of the periods presented.
Schedule of customer with contract revenues by major customers
During the year ended December 31, 2023 (Successor), periods from February 23, 2022 through December 31, 2022 (Successor) and January 1, 2022 through February 22, 2022 (Predecessor) and year ended December 31, 2021 (Predecessor) we had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorPredecessor
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Sonadrill17 %21 %9 %— %
Petrobras16 %— %— %— %
Var Energi9 %14 %11 %— %
Equinor6 %14 %10 %15 %
ConocoPhillips5 %13 %13 %18 %
Lundin— %1 %12 %13 %
Others47 %37 %45 %54 %
100 %100 %100 %100 %
v3.24.1
Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of contract assets and contract liabilities from contracts with customers The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers:
(In $ millions)December 31, 2023 December 31, 2022
Accounts receivable, net222 137 
Current contract liabilities (classified within other current liabilities)(31)(19)
Non-current contract liabilities (classified within other non-current liabilities)(33)(42)
Significant changes in the contract liabilities balances during the year ended December 31, 2023 were as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2023  (61)
Aquadrill Acquisition(1)
Amortization of revenue that was included in the beginning contract liability balance  19 
Cash received, excluding amounts recognized as revenue(21)
Net contract liability at December 31, 2023  (64)
Significant changes in the contract liabilities balances during the year ended December 31, 2022 are as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2022 (Predecessor)  (35)
Amortization of revenue that was included in the beginning contract liability balance16 
Net contract liability at February 22, 2022 (Predecessor)(19)
Net contract liability at February 23, 2022 (Successor)(19)
Amortization of revenue that was included in the beginning contract liability balance  9 
Cash received, excluding amounts recognized as revenue(51)
Net contract liability at December 31, 2022 (Successor)  (61)
v3.24.1
Other revenues (Tables)
 12 Months Ended
Dec. 31, 2023
Revenues [Abstract]  
Other revenues
Other revenues consist of the following:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Leasing revenues (i)
33 24 4 26 
Inventory sales (ii)
— 9 — — 
Early termination fees (iii)
— — — 6 
Other (iv)
12 6 1 — 
Total other revenues45 39 5 32 
i.Leasing revenues
Revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our joint ventures. Refer to Note 26 – "Related party transactions" – for further details.
ii. Inventory sales
Sales of spare parts in inventory from the West Tucana, West Castor and West Telesto were made to Gulf Drilling International.
iii. Early termination fees
Early termination fees were received in 2021 for the West Bollsta.
iv. Other
On July 1, 2022, Seadrill novated its drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term. This lease is considered to form part of Seadrill’s investment in the joint venture, Sonadrill. Accordingly, we recorded a $21 million increase to our investment in Sonadrill at the commencement of the West Gemini lease to Sonadrill on July 1, 2022.
v3.24.1
Other operating items (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other operating items
Other operating items consist of the following:
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on disposals (i)
14 1 2 47 
Impairment of long-lived assets (ii)
— — — (152)
Other operating income (iii)
— — — 54 
Total other operating items14 1 2 (51)
i. Gain on disposals
The gain on disposal in 2023 is comprised of sales of capital spares relating to jackups, the West Hercules, and spare parts on previously recycled rigs.
The gain on disposal in 2022 Successor period relates to the sale of sundry assets of the West Tucana and West Carina and the sale of capital spares on the West Hercules and parts on the West Navigator. The gain on disposal in the Predecessor period relates to the sale of the West Venture on January 19, 2022.
Seadrill disposed of seven rigs in 2021, all of which had previously been impaired in full. The full consideration, less costs to sell, was recognized as a gain on disposal.
ii. Impairment of long lived assets
In June 2021, the West Hercules was impaired by $152 million. Refer to Note 12 – "Loss on Impairment of long lived assets".
iii. Other operating income
The gain in 2021 relates primarily to the write-off of pre-petition lease liabilities to Northern Ocean for the West Bollsta of $19 million and pre-petition liabilities to Aquadrill of $8 million following settlement agreements reached in 2021, as well as receipt of a $22 million
distribution from The Norwegian Shipowners' Mutual War Risks Insurance Association, representing a rebate of past premium paid.
Other operating income
Other operating items consist of the following:
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Gain on disposals (i)
14 1 2 47 
Impairment of long-lived assets (ii)
— — — (152)
Other operating income (iii)
— — — 54 
Total other operating items14 1 2 (51)
i. Gain on disposals
The gain on disposal in 2023 is comprised of sales of capital spares relating to jackups, the West Hercules, and spare parts on previously recycled rigs.
The gain on disposal in 2022 Successor period relates to the sale of sundry assets of the West Tucana and West Carina and the sale of capital spares on the West Hercules and parts on the West Navigator. The gain on disposal in the Predecessor period relates to the sale of the West Venture on January 19, 2022.
Seadrill disposed of seven rigs in 2021, all of which had previously been impaired in full. The full consideration, less costs to sell, was recognized as a gain on disposal.
ii. Impairment of long lived assets
In June 2021, the West Hercules was impaired by $152 million. Refer to Note 12 – "Loss on Impairment of long lived assets".
iii. Other operating income
The gain in 2021 relates primarily to the write-off of pre-petition lease liabilities to Northern Ocean for the West Bollsta of $19 million and pre-petition liabilities to Aquadrill of $8 million following settlement agreements reached in 2021, as well as receipt of a $22 million
distribution from The Norwegian Shipowners' Mutual War Risks Insurance Association, representing a rebate of past premium paid.
v3.24.1
Interest expense (Tables)
 12 Months Ended
Dec. 31, 2023
Interest Expense [Abstract]  
Summary of interest expense
Interest expense consists of the following:
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Cash and payment-in-kind interest on debt facilities (a)
(54)(95)— (25)
Interest on SFL leases (b)
— — (7)(84)
Other(5)(3)— — 
Interest expense(59)(98)(7)(109)
(a) 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. Please refer to Note 20 – "Debt" for more information on these debt facilities.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
$575 million secured bond in issue
(21)— — — 
Post-emergence first lien senior secured(12)(14)— — 
Post-emergence second lien senior secured(16)(78)— — 
Post-emergence unsecured senior convertible bond(5)(3)— — 
Pre-filing senior credit facilities — — — (25)
Cash and payment-in-kind interest(54)(95)— (25)
v3.24.1
Taxation (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of income taxes Income taxes consist of the following:
 SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Current tax expense:   
Bermuda— — — — 
Foreign30 15 3 2 
Deferred tax benefit:
Bermuda— — — — 
Foreign(13)(5)(1)(2)
Total tax expense17 10 2 — 
Effective tax rate5.4 %16.0 %— %— %
Schedule of income tax reconciliation
The income taxes for the year ended December 31, 2023 (Successor), the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), and the year ended December 31, 2021 (Predecessor) differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows:
 SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Effect of change on unrecognized tax benefits 4 (5)— 2 
Effect of unremitted earnings of subsidiaries1 1 (1)— 
Effect of taxable income in various countries12 14 3 (2)
Total tax expense17 10 2 — 
Schedule of deferred income taxes
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The net deferred tax assets are comprised of the following:
Deferred tax assets:
(In $ millions)December 31, 2023 December 31, 2022
Net operating losses carried forward1,097 296 
Property, plant and equipment210 92 
Provisions37 27 
Intangibles5 — 
Pensions and stock options3 1 
Other11 12 
Gross deferred tax assets1,363 428 
Valuation allowance(1,317)(413)
Deferred tax assets, net of valuation allowance46 15 
Deferred tax liabilities:
(In $ millions)December 31, 2023 December 31, 2022
Unremitted earnings of subsidiaries9 8 
Intangibles— 1 
Gross deferred tax liabilities9 9 
Net deferred tax assets37 6
Schedule of changes in uncertain tax positions The changes to our balance related to unrecognized tax benefits were as follows:
SuccessorPredecessor
 (In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Balance at the beginning of the period82 84 83 82 
Increases as a result of acquisition of Aquadrill71— — — 
Increases as a result of positions taken in prior periods5 1 1 2 
Increases as a result of positions taken during the current period1 — — 2 
Decreases as a result of positions taken in prior periods(8)— — (1)
Decreases due to settlements— (1)— (1)
Decreases as a result of a lapse of the applicable statute of limitations(1)(2)— (1)
Balance at the end of the period150 82 84 83 
Summary of tax years that remain subject to examination
The uncertain tax positions were included in "Other non-current liabilities" on our Consolidated Balance Sheets and are comprised as follows:
(In $ millions)December 31, 2023December 31, 2022
Gross unrecognized tax benefits excluding interest and penalties150 82 
Aquadrill interest and penalties acquired11 — 
Interest and penalties27 21 
Offset against deferred tax assets(18)(18)
Total unrecognized tax benefits included as "Other non-current liabilities"170 85
The following table summarizes the earliest tax years that remain subject to examination by major taxable jurisdictions in which we operate. 
JurisdictionEarliest open year
Brazil2008
Norway2015
Switzerland2019
United States2020
v3.24.1
Earnings/(loss) per share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of calculation of basic and diluted EPS
The components of the numerator for the calculation of basic and diluted EPS are as follows:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Net income/(loss) from continuing operations 300 (73)3,739 (572)
Income/(loss) after tax from discontinued operations — 274 (33)(15)
Net income/(loss) available to stockholders300 201 3,706 (587)
Effect of dilution - interest on unsecured senior convertible bond (Note 11)5 3 — — 
Diluted net income/(loss) available to stockholders305 204 3,706 (587)
The components of the denominator for the calculation of basic and diluted EPS/LPS are as follows:
SuccessorPredecessor
(In millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Basic earnings per share:
Weighted average number of common shares outstanding(1)
71 50 100 100 
Diluted earnings per share:
Effect of dilution3 3 — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution74 53 100 100 
(1) Weighted average number of common shares outstanding in the year 2023 excludes Treasury shares repurchased and shares retired during the period. Please refer to Note 23 – "Common Shares" for details on Shares repurchased.
The basic and diluted EPS/LPS are as follows:     
SuccessorPredecessor
(In $)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Basic EPS/(LPS): continuing operations4.23 (1.46)37.25 (5.70)
Diluted EPS/(LPS): continuing operations4.12 (1.46)37.25 (5.70)
Basic EPS/(LPS)4.23 4.02 36.92 (5.85)
Diluted EPS/(LPS)4.12 3.88 36.92 (5.85)
v3.24.1
Restricted cash (Tables)
 12 Months Ended
Dec. 31, 2023
Restricted Cash and Investments [Abstract]  
Schedule of restricted cash
Restricted cash consists of the following:
(In $ millions)December 31, 2023December 31, 2022
Cash held in escrow23 23 
Demand deposit pledged as collateral for tax related guarantee (1)
— 74 
Accounts pledged as collateral for performance bonds and similar guarantees— 10 
Other8 11 
Total restricted cash31 118 
(1) The guarantee was replaced during the year with a new guarantee not requiring cash collateral. Please refer to Note 29 – "Commitments and contingencies" for further details.
Restricted cash is presented in our Consolidated Balance Sheets as follows:
(In $ millions)December 31, 2023December 31, 2022
Current restricted cash31 44 
Non-current restricted cash— 74 
Total restricted cash31 118 
v3.24.1
Other current and non-current assets (Tables)
 12 Months Ended
Dec. 31, 2023
Other Assets [Abstract]  
Schedule of Other Current Assets
As of December 31, 2023 and 2022, other current assets included the following: 
(In $ millions)December 31, 2023December 31, 2022
Taxes receivable67 42 
Prepaid expenses54 37 
Deferred contract costs41 34 
Pre-funding of MSA manager arrangements23 — 
Favorable drilling and management services contracts1 30 
Other13 26 
Total other current assets199 169 
Other Non-current Assets
As of December 31, 2023 and 2022, other non-current assets included the following: 
(In $ millions)December 31, 2023December 31, 2022
Deferred contract costs44 77 
Favorable drilling and management services contracts— 12 
Other12 4 
Total other non-current assets56 93 
Schedule of other assets
The following tables summarize the movement in favorable drilling contracts and management services contracts for the year ended December 31, 2023 and the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
Gross carrying amountAccumulated amortizationNet carrying amount
As at January 1, 202396 (54)42 
PES disposal(13)— (13)
Aquadrill acquisition 7 — 7 
Amortization— (35)(35)
As at December 31, 202390 (89)1 
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)266 (257)9 
Balance before reorganization and fresh start adjustments266 (257)9 
Fresh Start accounting(170)257 87 
As at February 22, 2022 (Predecessor)96 — 96 
As at February 23, 2022 (Successor)96 — 96 
Amortization— (54)(54)
As at December 31, 2022 (Successor)96 (54)42 
v3.24.1
Investment in associated companies (Tables)
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of ownership percentages and book values in associated companies
We had the following investments in associated companies as of December 31, 2023 and December 31, 2022:
Ownership percentageDecember 31, 2023December 31, 2022
Sonadrill (i)
50 %50 %
Gulfdrill (ii)
50 %50 %
Paratus Energy Services Ltd (iii)
— %35 %
We account for our investments in associates under the equity method. For transactions with related parties refer to Note 26 – "Related party transactions".
i. Sonadrill
Sonadrill is a joint venture that presently operates three drillships focusing on opportunities in Angolan waters. Seadrill owns a 50% stake in Sonadrill, with the remaining 50% interest owned by Sonangol EP ("Sonangol"). Both companies initially committed to charter two units each into the joint venture. As of December 31, 2023, Sonadrill leased three drillships, including the Libongos and Quenguela from Sonangol, and the West Gemini from Seadrill. Seadrill manages all three units for the joint venture.
The Libongos has been operating within the joint venture since 2019, and the Quenguela commenced operations on its maiden contract in March 2022. On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract. The West Gemini is leased to Sonadrill at a nominal charter rate based on a commitment made under the terms of the joint venture agreement.
Seadrill's investment in the Sonadrill joint venture includes initial equity capital and certain other contingent commitments, including the commitment to charter up to two drillships to the joint venture at a nominal charter rate, contingent on Sonadrill obtaining drilling contracts for the units. The lease of the West Gemini to Sonadrill for the duration of the contracts for a nominal charter rate is considered part of Seadrill’s investment in the joint venture. As such, the company recorded a liability equal to the fair value of the lease at the commencement of the West Gemini lease to Sonadrill, with the offsetting entry being a basis difference against the investment in Sonadrill.
The remaining committed Seadrill rig will be leased to the joint venture once Sonadrill secures a drilling contract.
ii. Gulfdrill
Seadrill owns a 50% stake in Gulfdrill, a joint venture that operates five premium jackups in Qatar with Qatargas. The remaining 50% interest is owned by Gulf Drilling International ("GDI"), which manages all five rigs. Three of Seadrill's jackup rigs are leased to the joint venture, namely the West Castor, West Telesto, and West Tucana. The two additional units are leased from a third-party shipyard, and all costs associated with these units are borne by Gulfdrill.
iii. Paratus Energy Services Ltd
PES, formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 4 – "Chapter 11".
On September 30, 2022, Seadrill entered into share purchase agreements with certain other existing shareholders of PES to dispose of the remaining 35% shareholding in PES. The sale closed on February 24, 2023 for total consideration of $44 million. As the total consideration received approximated the book value disposed, a minor gain has been recognized in the Consolidated Statement of Operations. In connection with the sale, on March 14, 2023, we provided each of PES and SeaMex Holdings Ltd ("SeaMex Holdings") with a termination notice regarding (i) the Master Services Agreement by and between PES and Seadrill Management Ltd, dated January 20, 2022 (the "Paratus MSA"), and (ii) the Master Services Agreement by and among SeaMex Holdings, certain operating companies party thereto and SML, dated January 20, 2022 (the "SeaMex MSA"), respectively. The Paratus MSA terminated on November 30, 2023; and the SeaMex MSA terminated on November 17, 2023. The termination of the Paratus MSA and SeaMex MSA did not have a material effect on the Company's financial results.
For further information on Seadrill's comprehensive restructuring, including the disposal of the 65% interest in Paratus Energy Services Ltd, please refer to Note 4 – "Chapter 11".
At the year end, the book values of our investments in our associated companies were as follows:
(In $ millions)December 31, 2023December 31, 2022
Sonadrill80 49 
Gulfdrill10 4 
PES
— 31 
Total90 84 
Share in results from associated companies
Our share in results of our associated companies were as follows:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Sonadrill31 2 1 5 
Gulfdrill6 4 — (2)
PES— (8)(3)— 
Total share in results from associated companies (net of tax)37 (2)(2)3 
Summary of consolidated statements of operations for our equity method investees
The results of Sonadrill and our share in those results is summarized below:
SonadrillSuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues357 200 14 94 
Net operating income101 21 2 18 
Net income79 10 2 11 
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Sonadrill (net of tax)39 5 1 5 
Basis difference amortization(8)(3)— — 
Net share in results from Sonadrill31 2 1 5 
The results of Gulfdrill and our share in those results is summarized below:
GulfdrillSuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues199 167 28 142 
Net operating income/(loss)16 14 2 (4)
Net income/(loss)12 9 1 (4)
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Gulfdrill (net of tax)6 4 — (2)
Summarized consolidated balance sheets for our equity method investees
The summarized balance sheets of the Sonadrill companies and our share of recorded equity in those companies was as follows:
(In $ millions)December 31, 2023December 31, 2022
Current assets169 105 
Non-current assets— 1 
Current liabilities(25)(40)
Non-current liabilities— (1)
Net assets144 65 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment72 33 
Basis difference net of amortization (i)
8 16 
Net book value of Seadrill investment80 49 
(i) On July 1, 2022, Seadrill recorded a liability of $21 million reflecting the fair value of the lease of the West Gemini to the Sonadrill joint venture at a nominal charter rate, with the offsetting entry being a basis difference in the joint venture. This basis difference is amortized over the lease term.
The summarized balance sheets of the Gulfdrill companies and our share of recorded equity in those companies was as follows:
(In $ millions)December 31, 2023December 31, 2022
Current assets118 110 
Non-current assets114 80 
Current liabilities(78)(129)
Non-current liabilities(134)(54)
Net assets20 7 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment10 4 
v3.24.1
Drilling units (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of drilling units
The following table summarizes the movement for the year ended December 31, 2023:
(In $ millions)CostAccumulated depreciationNet book value
As at January 1, 20231,761 (93)1,668 
Aquadrill acquisition1,252 — 1,252 
Additions206 — 206 
Depreciation — (183)(183)
Disposals (1)
(86)1 (85)
As at December 31, 20233,133 (275)2,858 
(1) Primarily relates to the disposal of the tender-assist units acquired under the Aquadrill acquisition.
The following table summarizes the movement for the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)2,241(810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23— 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (1)
(211)36(175)
Fresh Start accounting (2)
(452)768316
As at February 22, 2022 (Predecessor)1,575 — 1,575 
As at February 23, 2022 (Successor)1,575 — 1,575 
Additions210 — 210 
Disposal of Sevan Brasil and Sevan Driller
(24)— (24)
Depreciation — (93)(93)
As at December 31, 2022 (Successor)1,761 (93)1,668 
(1) The lease agreements with SFL for the West Hercules and West Linus were amended such that the rigs were derecognized from drilling units in August 2021 and February 2022, respectively, and replaced with right of use assets within other assets. The West Linus and West Hercules were returned to SFL in September 2022 and December 2022, respectively.
(2) On emergence from Chapter 11 proceedings, the carrying values of our drilling units were adjusted to fair value as a result of the implementation of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. Refer to Note 5 – "Fresh Start Accounting" for further information.
v3.24.1
Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Equipment
Equipment consists of office equipment, software, furniture and fittings. The following table summarizes the movement for the year ended December 31, 2023:
 (In $ millions)
Cost Accumulated Depreciation Net Book Value
As at January 1, 202313(3)10
Additions3— 3
Aquadrill acquisition 1— 1
Depreciation — (4)(4)
As at December 31, 202317 (7)10 
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 December 31, 2022 (Successor):
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2022 (Predecessor)39 (28)11 
Balance before reorganization and fresh start adjustments39 (28)11 
Fresh start adjustments(30)28(2)
As at February 22, 2022 (Predecessor)9— 9
As at February 23, 2022 (Successor)9— 9
Additions4 — 4 
Depreciation— (3)(3)
As at December 31, 2022 (Successor)13 (3)10 
v3.24.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of debt
The table below sets our external debt agreements as of December 31, 2023 and 2022:
(In $ millions)December 31, 2023December 31, 2022
Secured debt:
$575 million secured bond in issue
575 — 
Term loan facility— 175 
Second lien facility— 271 
Total secured debt 575 446 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 625 496 
Debt premium and exit fees:
Premium on bond issuance1— 
Term loan facility exit fee— 9 
Second lien facility exit fee— 13 
Total debt premium and exit fees1 22 
Less: bond issuance costs(18)— 
Total debt608 518 
Debt is presented in our Consolidated Balance Sheets as:
(In $ millions)December 31, 2023December 31, 2022
Debt due within one year— 22 
Long-term debt608 496 
Total debt 608 518 
v3.24.1
Other current and non-current liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Other Current Liabilities
As of December 31, 2023 and 2022, other current liabilities included the following:  
(In $ millions)December 31, 2023December 31, 2022
Accrued expenses117 124 
Employee withheld taxes, social security and vacation payments54 47 
Taxes payable33 29 
Contract liabilities31 19 
Unfavorable drilling contracts30 24 
Accrued interest expense21 4 
Other liabilities50 59 
Total other current liabilities336 306 
Other non-current liabilities
As of December 31, 2023 and 2022, other non-current liabilities included the following:  
(In $ millions)December 31, 2023December 31, 2022
Uncertain tax positions170 85 
Contract liabilities33 42 
Unfavorable drilling contracts22 46 
Other liabilities4 17 
Total other non-current liabilities229 190 
Movement in unfavorable drilling contracts
The following tables summarize the movement in unfavorable drilling contracts and management services contracts for the year ended December 31, 2023, the period from January 1, 2022 through February 22, 2022 (Predecessor) and from February 23, 2022 through December 31, 2022 (Successor):
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 202385 (15)70 
Aquadrill acquisition49 — 49 
Amortization— (67)(67)
As at December 31, 2023134 (82)52 

 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2022 (Predecessor)66 (60)6 
Balance before reorganization and fresh start adjustments66 (60)6 
Fresh Start accounting19 60 79 
As at February 22, 2022 (Predecessor)85 — 85 
As at February 23, 2022 (Successor)85 — 85 
Amortization— (15)(15)
As at December 31, 2022 (Successor)85 (15)70 
Amounts relating to unfavorable contracts that is expected to be amortized
The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31
(In $ millions)202420252026Total
Amortization of unfavorable contracts30 19 3 52 
v3.24.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Future undiscounted cash flows for operating leases and reconciliation to operating lease liability
For operating leases where we are the lessee, our future undiscounted cash flows as of December 31, 2023, were as follows:
(In $ millions)Year ended December 31, 2023
20242 
20251 
20261 
2027 and thereafter2 
Total6 
Reconciliation between undiscounted cashflows and operating lease liability
The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheet as of December 31, 2023:
(In $ millions)December 31, 2023December 31, 2022
Total undiscounted cash flows6 11 
Less discount(2)(2)
Operating lease liability4 9 
Of which:
Current2 3 
Non-current2 6 
Total 4 9 
Supplementary information regarding lease accounting
The following table gives supplementary information regarding our lease accounting at December 31, 2023:
SuccessorPredecessor
(In $ million)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating lease cost:
Operating lease cost4 36 4 42 
Short-term lease cost— 3 1 1 
Total lease cost4 39 5 43 
Other information:
Cash paid for lease liabilities- operating cash flows4 39 5 41 
ROU assets obtained in exchange for lease liabilities — — 24 24 
Weighted-average remaining lease term in months47522219
Weighted-average discount rate10%10%9%10%
Operating subleases and leases, lessor, future undiscounted cash flows, and income
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of December 31, 2023, were as follows. These estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31, 2023
202453 
202547 
20266 
Total106 
Refer to Note 9 – "Other revenue" for details of the revenues recorded in respect of the above leases.
v3.24.1
Common shares (Tables)
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Change in common shares
Share capital as of December 31, 2023 and December 31, 2022 was as follows:
 Issued and fully paid share capital
SharesPar value each$ thousands
As at January 1, 2022 and balance before reorganization and fresh start adjustments100,384,435 $0.10 10,038 
Cancellation of Predecessor equity(100,384,435)$0.10 (10,038)
Issuance of Successor common stock49,999,998 $0.01 500 
As at February 22, 2022 (Predecessor)49,999,998 $0.01 500 
As at February 23, 2022, and December 31, 2022 (Successor)49,999,998 $0.01 500 
Share issued to Aquadrill unitholders and equity award holders29,866,543 $0.01 299 
Share repurchased and cancelled(5,817,579)$0.01 (58)
As at December 31, 2023 (1)
74,048,962 $0.01 741 
(1) Total Shares in issue of 74,048,962 includes 343,619 Shares repurchased in December 2023 and pending cancellation. These Shares are considered retired for accounting purposes.
v3.24.1
Accumulated other comprehensive income/(loss) (Tables)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of accumulated other comprehensive income/(loss)
Changes in accumulated other comprehensive income/(loss) for the periods presented in this report were as follows:
(In $ millions)Actuarial gain/(loss) relating to pensionShare in unrealized losses from associated companiesChange in debt component on Archer facilityTotal
As at January 1, 2022 (Predecessor)(2)(19)6 (15)
Other comprehensive income from continuing operations1 — — 1 
Other comprehensive loss from discontinued operations— (2)(1)(3)
Recycling of accumulated other comprehensive loss on sale of PES— 21 (5)16 
Balance before reorganization and fresh start adjustments(1)— — (1)
Reset accumulated other comprehensive loss1 — — 1 
As at February 22, 2022 (Predecessor)— — — — 
As at February 23, 2022 (Successor) — — — — 
Other comprehensive income2 — — 2 
As at December 31, 2022 (Successor)2 — — 2 
Other comprehensive loss(1)— — (1)
As at December 31, 2023 (Successor)1 — — 1 
v3.24.1
Share based compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-based compensation by share based payment award
A summary of the time-based restricted stock unit activities and performance-based restricted stock unit activities for the year ended December 31, 2023 and the period from February 23, 2022 through December 31, 2022 (Successor) is presented below. There were no unvested restricted stock units for the period from January 1 through February 22, 2022 (Predecessor).
Awards subject to service or external market conditionsAwards subject to internal performance conditions
SharesWeighted average Modification Date fair valueWeighted average remaining contractual termSharesWeighted average Modification Date fair valueWeighted average remaining contractual term
Non-vested restricted share units at February 23, 2022 (Successor)— — 0— — 0
Granted during the period418,508 — 0— — 0
Vested during the period— — 0— — 0
Forfeited during the period— — 0— — 0
Non-vested restricted share units at December 31, 2022 (Successor)418,508 — 2.60— — 0
Granted during the year447,363 38.74 0117,452 41.83 0
Vested during the year (1)
(135,225)— 0— — 0
Forfeited during the year(70,210)40.11 0(16,958)41.83 0
Non-vested restricted share units at December 31, 2023 (Successor)660,436 38.98 1.78100,494 41.83 2.00
(1) 43,988 awards vested prior to the Modification Date and were cash-settled at the settlement date fair value.
v3.24.1
Related party transactions (Tables)
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Schedule of related party transactions
The below table provides an analysis of related party revenues for periods presented in this report.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Management fee revenues (a)
225 174 12 98 
Reimbursable revenues (b)
28 12 3 65 
Leasing revenues (c)
33 24 4 26 
Other (d)
12 6 — — 
Total related party operating revenues 298 216 19 189 
(a) Seadrill has provided management and administrative services to Sonadrill, SeaMex, and PES, and operational and technical support services to SeaMex and Sonadrill. These services were charged to our affiliates on a cost-plus mark-up or dayrate basis. Following the
disposal of our remaining 35% equity interest in PES on February 24, 2023, PES and SeaMex are no longer related parties of Seadrill and any revenue subsequent to that date has been excluded from the above results. Additionally, in the Predecessor period, we provided similar services to Aquadrill and Northern Ocean.
(b) Seadrill recognized reimbursable revenues from Sonadrill for project work on Libongos, Quenguela, and West Gemini rigs. Additionally, in the Predecessor period, Seadrill recognized reimbursable revenues from Northern Ocean for work performed to mobilize the West Mira and West Bollsta.
(c) Lease revenues earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill.
(d) On July 1, 2022, Seadrill novated their drilling contract for the West Gemini in Angola to the Sonadrill joint venture and leased the West Gemini to Sonadrill for the duration of that contract and the follow-on contract, entered into directly by Sonadrill, at a nominal charter rate, based on a commitment made under the terms of the joint venture agreement. At the commencement of the lease, we recorded a liability representing the fair value of the lease commitment which we amortize as other revenue, on a straight-line basis, over the lease term.
The below table provides an analysis of related party operating expenses for periods presented in this report.
SuccessorPredecessor
 (In $ millions)
Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
West Bollsta lease (e)
— — — (57)
West Hercules lease (f)
— — (3)(10)
Other related party operating expenses— — — (3)
Total related party operating expenses— — (3)(70)
(e) 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.
(f) Seadrill incurred operating lease expenses 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 22 – "Leases" for details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
The below table provides an analysis of related party receivable balances for periods presented in this report.
(In $ millions)December 31, 2023December 31, 2022
Trading balances (g)
9 28 
Allowance for expected credit loss (h)
— (1)
Total related party receivables9 27 
Of which:
Amounts due from related parties - current9 27 
Amounts due from related parties - non-current— — 
Total amounts due from related parties 9 27 
(g) Trading balances as of December 31, 2023, are comprised of receivables from Sonadrill and, as of December 31, 2022, from Gulfdrill, SeaMex and PES for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(h) 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 6 – "Current expected credit losses" for details.
v3.24.1
Fair values of financial instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial instruments measured at amortized cost
The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as of December 31, 2023 and December 31, 2022 are as follows:
December 31, 2023December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Liabilities
$575 million secured bond in issue (Level 1)
597 558 — — 
First Lien Senior Secured (Level 3)
— — 195 184 
Second Lien Senior Secured (Level 3)
— — 284 284 
Unsecured Convertible Bond - debt component (Level 3)
49 50 46 50 
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis at December 31, 2023 and December 31, 2022 are as follows: 
As at December 31, 2023As at December 31, 2022
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
697 697 480 480 
Restricted cash (Level 1)
31 31 118 118 
Interest rate cap (Level 2)
— — 5 5 
v3.24.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Summary of major classes of line Items constituting profit/(loss) of discontinued operations
The table below shows net income/(loss) from discontinued operations:
SuccessorPredecessor
(In $ millions, except per share data)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Net (loss)/income of Paratus Energy Services Ltd——(4)5
Net income/(loss) of KSA Business—8(29)(20)
Gain on disposal of KSA Business—276——
Exit cost associated with disposal of KSA Business—(10)——
Net income/(loss) from discontinued operations—274(33)(15)
Basic EPS: discontinued operations ($)—5.48(0.33)(0.15)
Diluted EPS: discontinued operations ($)—5.21(0.33)(0.15)
The table below analyses the cash flows from discontinued operations between our two discontinued operations:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Paratus Energy Services Ltd——(69)(18)
KSA Business—5(20)13
Net cash provided by/(used in) operating activities—5(89)(5)
Paratus Energy Services Ltd———23
KSA Business—(40)——
Net cash (used in)/provided by investing activities—(40)—23
Paratus Energy Services Ltd————
KSA Business—1620—
Net cash provided by financing activities—1620—
The table below summarizes the profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by the KSA Business during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues
Contract revenues— 86 18 101 
Total operating revenues— 86 18 101 
Operating expenses
Vessel and rig operating expenses— (45)(10)(64)
Depreciation and amortization— (22)(4)(28)
Selling, general and administrative expenses— (8)(1)(10)
Total operating expenses— (75)(15)(102)
Operating profit/(loss)— 11 3 (1)
Financial and other non-operating items
Reorganization items, net — — (32)(14)
Other financial items— (1)— — 
Profit/(loss) before income taxes— 10 (29)(15)
Income tax expense— (2)— (5)
Net income/(loss)— 8 (29)(20)
The table below summarizes the profit and loss statement for the PES during periods when it was a fully consolidated subsidiary of Seadrill. The net income earned by PES during these periods was reported through the discontinued operations line item.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021
Operating revenues
Contract revenues— — 1236 
Total operating revenues— — 1236 
Operating expenses
Operating expenses— — (8)(27)
Total operating expenses— — (8)(27)
Operating profit— — 49 
Financial and other non-operating items
Interest income— — — 18
Interest expense— — (4)(77)
Share in results from associated companies (net of tax)— — (1)14
Other financial items— — (2)39
Total financial items— — (7)(6)
Profit/(loss) before income taxes— — (3)3
Income tax (expense)/benefit— — (1)2
Net (loss)/income— — (4)5 
Schedule Of Net Gain On Disposal The net gain on disposal, which is reported within Other financial items in our Consolidated Statement of Operations, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Year ended December 31, 2023
Initial purchase price 43 
Lender incentive fee1 
Total consideration44 
Less: Book value of PES investment(31)
Less: Management incentive fee intangible(13)
Gain on disposal— 
The gain on sale, which is reported within discontinued operations in our Consolidated Statement of Operations, and the sale proceeds, which is reported in our Consolidated Statement of Cash Flows, are summarized further in the table below:
Gain on saleReceived/(paid) to date
(In $ millions)202220222023
Initial Purchase Price 628 628 — 
Adjustment for working capital, cash, and reimbursement of reactivation costs53 50 3 
Less: Deal costs(11)(11)— 
Less: Fair value of indemnities and warranties(36)(8)(25)
Net sales price634 659 (22)
Less: Book value of KSA Business(358)— — 
Total276 659 (22)
v3.24.1
Business combination (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of identifiable assets acquired and liabilities assumed as at acquisition date
(In $ millions, except share data)Aquadrill Shares
Final Exchange Ratio (4)
As at Acquisition
Aquadrill outstanding shares as of April 3, 202320,000,000 1.4128,258,965 
Aquadrill restricted stock units122,104 1.41172,527 
Aquadrill phantom award units105,700 1.41149,349 
Aquadrill phantom appreciation rights570,000 0.70399,576 
Total Aquadrill shares converted to Seadrill shares20,797,804 28,980,417 
Company Sale Bonus (1)
1,664,743 
Total Seadrill shares eligible for purchase of Aquadrill30,645,160 
Less: Tax withholding in lieu of common shares (2)
(744,150)
Less: Seadrill shares settled in cash (3)
(34,505)
Seadrill shares issued for purchase of Aquadrill29,866,505 
Seadrill share price at April 3, 2023 market close41.62 
Consideration issued in Seadrill shares1,243 
Consideration settled by tax withholding (2)
30 
Consideration settled in cash (3)
1 
Total consideration transferred1,274 
(1) Immediately prior to the Closing Date, the Sale Bonus Award Agreement, dated as of May 24, 2021, by and between Aquadrill and Steven Newman, the Chief Executive Officer and a director of Aquadrill, was terminated and in connection with such termination at the Effective Time and in accordance with the Merger Agreement, Mr. Newman received 1,013,405 Seadrill common shares and $26 million tax withholding, paid on his behalf, in lieu of Seadrill common shares.
(2) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, the Company elected to pay $30 million of tax withholding. These Shares were settled at a per share value agreed upon between the Company and the Aquadrill board of directors.
(3) Pursuant to the Merger Agreement, in lieu of issuing Seadrill common shares, certain non-employee board members elected to receive $1 million cash in lieu of Seadrill common shares. These Shares were settled at a per share value agreed upon between the Company and the Aquadrill board of directors.
(4) Final exchange ratios calculated pursuant to the Merger Agreement.
The table below represents the preliminary PPA to the identifiable assets acquired and liabilities assumed at the Closing Date and subsequent adjustments made during the measurement period:
(In $ millions)As at AcquisitionMeasurement Period AdjustmentsUpdated As at Acquisition
Assets acquired:
Cash and cash equivalents51—51
Restricted cash5—5
Accounts receivable60—60
Other current assets36743
Total current assets1527159
Drilling units1,255(3)1,252
Deferred tax assets19—19
Equipment1—1
Other non-current assets5—5
Total non-current assets1,280(3)1,277
Total assets acquired1,43241,436
Liabilities assumed:
Trade accounts payable11—11
Other current liabilities69473
Total current liabilities80484
Other non-current liabilities78—78
Total non-current liabilities78—78
Total liabilities assumed1584162
Net asset acquired1,274—1,274
Post-Merger Operating Results
The following table reflects Aquadrill's operating revenue and net income from continuing operations included in Seadrill's consolidated statement of operations subsequent to the Convenience Date.
(In $ millions)Year ended December 31, 2023
Operating revenue 383
Net income from continuing operations145
Schedule of operation results since the acquisition date included in discontinued operations
The following unaudited pro forma summary presents the results of operations as if the Merger had occurred on February 23, 2022, the date of emergence from Chapter 11 for the Successor company. The pro forma summary uses estimates and assumptions based on information available at the time. We believe the estimates and assumptions are reasonable, however, actual results may have differed significantly from this pro forma financial information. The pro forma information does not purport to be indicative of results of operations that would have occurred had the Merger occurred on the basis assumed above, nor is such information indicative of our expected future results. The pro forma results of operations do not reflect any cost savings or other synergies that might have been achieved from combining the operations or any estimated costs that have not yet been incurred to integrate Aquadrill assets.
(In $ millions, except per share data)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022
Operating revenue1,580 1,009 
Net income/(loss) from continuing operations262(111)
Basic EPS: continuing operations ($)3.34(1.39)
Diluted EPS: continuing operations ($)3.29(1.39)
The table below summarizes the results of operations related to the tender-assist units included in the pro forma results of operations:
(in $ millions)Year ended December 31, 2023Period from February 23, 2022 through December 31, 2022
Tender-assist units
Operating revenue1310
Loss from continuing operations(8)(3)
v3.24.1
General Information (Details)
shares in Millions, $ in Millions
 10 Months Ended 12 Months Ended
Apr. 03, 2023
USD ($)
rig
shares
Dec. 31, 2022
Dec. 31, 2023
rig
segment
Oct. 31, 2022
rig
Sep. 01, 2022
rig
Jan. 31, 2022
Lessor, Lease, Description [Line Items]            
Number of offshore drilling units owned by the company     19      
Number of rigs cold stacked     3      
Number of rigs warm stacked     1      
Financial designation, predecessor and successor   Successor        
Number of operating segments | segment     1      
Number of jackup units       7 7  
Number of drillships     2      
Aquadrill LLC            
Lessor, Lease, Description [Line Items]            
Shares issued on closing of Aquadrill acquisition | shares 29.9          
Consideration settled by tax withholding | $ $ 30          
Consideration settled in cash | $ $ 1          
Number of drillships 4          
Number of semi-submersible units 1          
Number of tender-assisted rigs 3          
PES [Member]            
Lessor, Lease, Description [Line Items]            
Ownership interest ( in percent)           65.00%
Gulfdrill            
Lessor, Lease, Description [Line Items]            
Number of rigs under lease     3      
Sonadrill            
Lessor, Lease, Description [Line Items]            
Number of rigs under lease     1      
Sonangol            
Lessor, Lease, Description [Line Items]            
Number of rigs managed     2      
v3.24.1
Accounting policies (Details)
Dec. 31, 2023
Drilling units  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 30 years
Overhauls of drilling units  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 5 years
Floaters and jackup rigs  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 30 years
Equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 3 years
Equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 5 years
Rig reactivation project costs | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 2 years
Rig reactivation project costs | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 5 years
v3.24.1
Chapter 11- Narrative (Details) - USD ($)
 2 Months Ended 11 Months Ended 12 Months Ended
Feb. 28, 2022
Feb. 19, 2022
Feb. 10, 2021
Feb. 22, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2023
Feb. 23, 2022
Jan. 20, 2022
Nov. 02, 2021
Reorganization, Chapter 11 [Line Items]                    
Long-term debt           $ 518,000,000 $ 608,000,000 $ 951,000,000    
Rights offering percentage     12.50%              
Equity commitment premium percentage     4.25%              
Backstop parties, commitment premium paid     7.50%              
Commitment premium     $ 20,000,000              
% Allocation               100.00%    
Rig asset derecognized       $ 175,000,000            
Financial liability, rig asset derecognized       161,000,000            
Cash held as collateral       7,000,000            
Interest expense, not recorded due to reorganization       $ 48,000,000 $ 298,000,000          
Paratus (Formerly NSNCo) | SeaMex                    
Reorganization, Chapter 11 [Line Items]                    
Voting rights                   100.00%
Allocation to predecessor senior secured lenders                    
Reorganization, Chapter 11 [Line Items]                    
% Allocation       83.00%       83.00%    
Allocation to new money lenders - holders of subscription rights                    
Reorganization, Chapter 11 [Line Items]                    
% Allocation       12.50%       12.50%    
Allocation to new money lenders - backstop parties                    
Reorganization, Chapter 11 [Line Items]                    
% Allocation       4.25%       4.25%    
Allocation to predecessor shareholders                    
Reorganization, Chapter 11 [Line Items]                    
% Allocation       0.25%       0.25%    
Maximum                    
Reorganization, Chapter 11 [Line Items]                    
Interim transition bareboat agreement period   9 months                
Minimum                    
Reorganization, Chapter 11 [Line Items]                    
Interim transition bareboat agreement period   6 years                
Reorganized Seadrill | Maximum                    
Reorganization, Chapter 11 [Line Items]                    
Ownership interest prior to disposal (in percent)     83.00%              
Reorganized Seadrill | Minimum                    
Reorganization, Chapter 11 [Line Items]                    
Ownership interest prior to disposal (in percent)     16.75%              
Paratus (Formerly NSNCo)                    
Reorganization, Chapter 11 [Line Items]                    
Ownership interest (as percent)                 35.00%  
Paratus (Formerly NSNCo) | NSNCo noteholders                    
Reorganization, Chapter 11 [Line Items]                    
Ownership interest prior to disposal (in percent)                 65.00%  
Allowed credit agreement claim                    
Reorganization, Chapter 11 [Line Items]                    
Long-term 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     175,000,000              
New first lien revolving credit facility                    
Reorganization, Chapter 11 [Line Items]                    
Maximum borrowing capacity     $ 125,000,000              
Hermen convertible bond | Convertible debt                    
Reorganization, Chapter 11 [Line Items]                    
Debt instrument, face amount $ 50,000,000                  
Conversion rate (in shares) 52.6316         52.6316        
Derivative, notional amount $ 1,000                  
v3.24.1
Chapter 11- Schedule of equity allocation (Details) - shares
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares) 74,048,962 49,999,998 49,999,998 49,999,998 100,384,435
% Allocation     100.00%    
Equity dilution on conversion of convertible bond     100.00%    
Allocation to predecessor senior secured lenders          
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares)     41,499,999    
% Allocation     83.00% 83.00%  
Equity dilution on conversion of convertible bond     78.85%    
Allocation to new money lenders - holders of subscription rights          
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares)     6,250,001    
% Allocation     12.50% 12.50%  
Equity dilution on conversion of convertible bond     11.87%    
Allocation to new money lenders - backstop parties          
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares)     2,125,000    
% Allocation     4.25% 4.25%  
Equity dilution on conversion of convertible bond     4.04%    
Allocation to predecessor shareholders          
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares)     124,998    
% Allocation     0.25% 0.25%  
Equity dilution on conversion of convertible bond     0.24%    
Allocation to convertible bondholder          
Reorganization, Chapter 11 [Line Items]          
Number of shares (in shares)     0    
% Allocation     0.00%    
Equity dilution on conversion of convertible bond     5.00%    
v3.24.1
Chapter 11-Schedule of liabilities subject to compromise (Details) - Predecessor
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Senior under-secured external debt $ 5,662
Accounts payable and other liabilities 35
Accrued interest on external debt 34
Amount due to SFL Corporation Ltd under leases for the West Taurus and West Linus 506
Liabilities Subject To Compromise Including Liabilities Related To Assets Held For Sale 6,237
Liabilities subject to compromise 6,119
Liabilities subject to compromise associated with assets held for sale $ 118
v3.24.1
Chapter 11-Schedule Of Reorganization Items (Details) - USD ($)
$ in Millions
 2 Months Ended 9 Months Ended 10 Months Ended 12 Months Ended
Jan. 20, 2022
Feb. 22, 2022
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 24, 2023
Feb. 23, 2022
Jan. 31, 2022
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       (15) 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   $ 3,683   (15) 0 $ (296)      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 $ (152)     (84) (90)     $ (64)  
Fair value of retained 35% interest in Paratus Energy Services Ltd 56                
Reclassification of NSNCo accumulated other comprehensive losses to income on disposal (16)                
Share in results from associated companies (net of tax) $ (112) 2   $ 2 $ (37) (3)      
PES                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest ( in percent) 35.00%   35.00% 35.00% 0.00%   35.00%   35.00%
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022       $ (31) $ 0        
Share in results from associated companies (net of tax)   3   8 0 0      
Paratus (Formerly NSNCo)                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest (as percent) 35.00%                
Paratus (Formerly NSNCo) | NSNCo noteholders                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest prior to disposal (in percent) 65.00%                
PES                  
Reorganization, Chapter 11 [Line Items]                  
Ownership interest prior to disposal (in percent)                 65.00%
Share in results from associated companies (net of tax)     $ (8)            
Continuing operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net       (15) 0        
Discontinued operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net       $ 0 $ 0        
Predecessor                  
Reorganization, Chapter 11 [Line Items]                  
Gain on settlement of liabilities subject to compromise   3,581       0      
Fresh Start valuation adjustments   242       0      
Loss on deconsolidation of Paratus Energy Services   (112)       0      
Advisory and professional fees   (44)       (127)      
Expense of predecessor Directors & Officers insurance policy   (17)       0      
Remeasurement of terminated lease to allowed claim   0       (186)      
Interest income on surplus cash   1       3      
Total reorganization items, net   3,651       (310)      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022   (81)              
Predecessor | Continuing operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net   3,683       (296)      
Predecessor | Discontinued operations                  
Reorganization, Chapter 11 [Line Items]                  
Total reorganization items, net   $ (32)       $ (14)      
v3.24.1
Fresh Start Accounting - Narrative (Details)
$ in Millions
Feb. 23, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Enterprise value $ 2,095
Minimum  
Reorganization, Chapter 11 [Line Items]  
Enterprise value 1,795
Maximum  
Reorganization, Chapter 11 [Line Items]  
Enterprise value 2,396
Median  
Reorganization, Chapter 11 [Line Items]  
Enterprise value $ 2,095
v3.24.1
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
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]          
Enterprise value $ 2,095        
Cash and cash equivalents 336   $ 697 $ 480 $ 293
Less: Fair value of long-term debt (951)        
Implied value of Successor equity $ 1,499        
Stock issued during period (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   0 22  
Long-term debt 179   $ 608 $ 496  
Total value of Successor Entity's assets on Emergence 2,979        
Aggregate continuing and discontinued operations          
Reorganization, Chapter 11 [Line Items]          
Cash and cash equivalents $ 355        
v3.24.1
Fresh Start Accounting - Schedule of Adjustments in Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 20, 2022
Dec. 31, 2021
Dec. 31, 2020
Fresh-Start Adjustments [Line Items]              
Cash and cash equivalents $ 697,000 $ 480,000 $ 336,000     $ 293,000  
Current restricted cash 31,000 44,000 85,000     160,000  
Accounts receivable, net 222,000 137,000 169,000        
Assets held for sale - current     74,000        
Other current assets 199,000 169,000 197,000        
Total current assets 1,158,000 857,000 903,000        
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 90,000 84,000 64,000   $ 152,000    
Drilling units 2,858,000 1,668,000 1,575,000        
Restricted cash 0 74,000 69,000     63,000  
Deferred tax assets 46,000 15,000 9,000        
Equipment 10,000 10,000 9,000        
Assets held for sale - non-current     311,000        
Other non-current assets 56,000 93,000 39,000        
Total non-current assets 3,060,000 1,944,000 2,076,000        
Total assets 4,218,000 2,801,000 2,979,000        
Trade accounts payable 53,000 76,000 53,000        
Liabilities associated with assets held for sale - current     64,000        
Other current liabilities 336,000 306,000 233,000        
Total current liabilities 389,000 404,000 350,000        
Long-term debt 608,000 518,000 951,000        
Deferred tax liabilities 9,000 9,000 6,000        
Liabilities associated with assets held for sale - non-current     2,000        
Other non-current liabilities 229,000 190,000 171,000        
Total non-current liabilities 846,000 695,000 1,130,000        
Predecessor common shares of par value 741 500 500 $ 500   10,038  
Additional paid-in capital 2,480,000 1,499,000 1,499,000        
Accumulated other comprehensive income 1,000 2,000          
Retained earnings 501,000 201,000          
Total shareholders' equity 2,983,000 1,702,000 1,499,000 1,499,000   (3,716,000) $ (3,140,000)
Total liabilities and shareholders' equity 4,218,000 2,801,000 2,979,000        
Related Party              
Fresh-Start Adjustments [Line Items]              
Amount due from related parties, net 9,000 27,000 42,000        
Fair value              
Fresh-Start Adjustments [Line Items]              
Drilling units     1,882,000        
Continuing operations | Fair value              
Fresh-Start Adjustments [Line Items]              
Drilling units     1,575,000        
Discontinued operations | Fair value              
Fresh-Start Adjustments [Line Items]              
Drilling units     307,000        
Additional paid in capital              
Fresh-Start Adjustments [Line Items]              
Total shareholders' equity 2,480,000 1,499,000 1,499,000 1,499,000   0 0
Predecessor              
Fresh-Start Adjustments [Line Items]              
Cash and cash equivalents       262,000      
Current restricted cash       135,000      
Accounts receivable, net       169,000      
Assets held for sale - current       63,000      
Other current assets       194,000      
Total current assets       865,000      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022       81,000      
Drilling units       1,434,000      
Restricted cash       69,000      
Deferred tax assets       8,000      
Equipment       11,000      
Assets held for sale - non-current       345,000      
Other non-current assets       13,000      
Total non-current assets       1,961,000      
Total assets       2,826,000      
Trade accounts payable       53,000      
Liabilities associated with assets held for sale - current       64,000      
Other current liabilities       164,000      
Total current liabilities       281,000      
Liabilities subject to compromise       6,119,000      
Liabilities subject to compromise associated with assets held for sale       118,000      
Deferred tax liabilities       7,000      
Liabilities associated with assets held for sale - non-current       2,000      
Other non-current liabilities       108,000      
Total non-current liabilities       117,000      
Predecessor common shares of par value       10,000      
Additional paid-in capital       3,504,000      
Accumulated other comprehensive income       (1,000)      
Retained earnings       (7,322,000)      
Total shareholders' equity       (3,809,000)      
Total liabilities and shareholders' equity       2,826,000      
Predecessor | Related Party              
Fresh-Start Adjustments [Line Items]              
Amount due from related parties, net       42,000      
Predecessor | Additional paid in capital              
Fresh-Start Adjustments [Line Items]              
Total shareholders' equity $ 0 $ 0 0 0   $ 3,504,000 $ 3,504,000
Reorganization Adjustments              
Fresh-Start Adjustments [Line Items]              
Cash and cash equivalents       74,000      
Current restricted cash       (50,000)      
Other current assets       (17,000)      
Total current assets       7,000      
Drilling units       (175,000)      
Total non-current assets       (175,000)      
Total assets       (168,000)      
Other current liabilities       52,000      
Total current liabilities       52,000      
Liabilities subject to compromise       (6,119,000)      
Liabilities subject to compromise associated with assets held for sale       (118,000)      
Long-term debt       951,000      
Total non-current liabilities       951,000      
Predecessor common shares of par value       (10,000)      
Additional paid-in capital     1,499,000 (3,504,000)      
Accumulated other comprehensive income       1,000      
Retained earnings       7,080,000      
Total shareholders' equity     $ 1,499,000 5,066,000      
Total liabilities and shareholders' equity       (168,000)      
Fresh Start Adjustments              
Fresh-Start Adjustments [Line Items]              
Assets held for sale - current       11,000      
Other current assets       20,000      
Total current assets       31,000      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022       (17,000)      
Drilling units       279,000      
Deferred tax assets       1,000      
Equipment       (2,000)      
Assets held for sale - non-current       (34,000)      
Other non-current assets       26,000      
Total non-current assets       290,000      
Total assets       321,000      
Other current liabilities       17,000      
Total current liabilities       17,000      
Deferred tax liabilities       (1,000)      
Other non-current liabilities       63,000      
Total non-current liabilities       62,000      
Retained earnings       242,000      
Total shareholders' equity       242,000      
Total liabilities and shareholders' equity       321,000      
Fresh Start Adjustments | Continuing operations              
Fresh-Start Adjustments [Line Items]              
Drilling units       316,000      
Liabilities subject to compromise       6,119,000      
Retained earnings       266,000      
Fresh Start Adjustments | Discontinued operations              
Fresh-Start Adjustments [Line Items]              
Drilling units       (37,000)      
Liabilities subject to compromise       118,000      
Retained earnings       $ (24,000)      
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]          
Proceeds from debt   $ 175 $ 0 $ 576 $ 0
Payment of the arrangement & financing fee for the Term Loan Facility   $ 0 $ 0 $ (31) $ 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)        
Transfer of cash to restricted cash for the professional fee escrow account funding (2)        
Reorganization Adjustments | Convertible bonds          
Reorganization, Chapter 11 [Line Items]          
Proceeds from debt 50        
Reorganization Adjustments | New second lien facility          
Reorganization, Chapter 11 [Line Items]          
Proceeds from debt $ 683        
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Restricted Cash (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims $ (45)
Return of cash collateral to SFL for the amended West Linus lease agreement (7)
Transfer of cash to restricted cash for the professional fee escrow account funding 2
Change in restricted cash $ (50)
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Other Current Assets (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Expense of Predecessor Directors & Officers insurance policy $ (17)
Expense of the Commitment Premium and other capitalized debt issuance costs (24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease 24
Change in other current assets (17)
Lease modification expense $ 175
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Other Current Liabilities (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds $ 27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease 25
Change in other current liabilities $ 52
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Liabilities Subject to Compromise (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]          
Amounts due to SFL Corporation Ltd under leases for the West Taurus and West Linus     $ 9 $ 4  
Payment of the arrangement & financing fee for the Term Loan Facility   $ 0 $ 0 $ (31) $ 0
Issuance of Successor common stock   (1,495)      
Predecessor          
Reorganization, Chapter 11 [Line Items]          
Accounts payable and other liabilities $ 35 35      
Liabilities subject to compromise 6,119 6,119      
Predecessor | Aggregate continuing and discontinued operations          
Reorganization, Chapter 11 [Line Items]          
Senior under-secured external debt 5,662 5,662      
Accounts payable and other liabilities 35 35      
Accrued interest expense 34 34      
Amounts due to SFL Corporation Ltd under leases for the West Taurus and West Linus 506 506      
Liabilities subject to compromise 6,237 6,237      
Reorganization Adjustments          
Reorganization, Chapter 11 [Line Items]          
Liabilities subject to compromise (6,119) (6,119)      
Payment of the AOD cash out option (116)        
Premium associated with the Term Loan Facility (9)        
Payment of the arrangement & financing fee for the Term Loan Facility (30)        
Payment of the rig sale proceeds (45)        
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid (27)        
Derecognition of West Linus rig and return of cash collateral (182)        
Reversal of the release of certain general unsecured operating accruals (35)        
Pre-tax gain on settlement of liabilities subject to compromise 3,581        
Reorganization Adjustments | Equity commitment premium          
Reorganization, Chapter 11 [Line Items]          
Issuance of Successor common stock (64)        
Reorganization Adjustments | Holders of prepetition credit agreement claims          
Reorganization, Chapter 11 [Line Items]          
Issuance of Successor common stock (1,244)        
Reorganization Adjustments | Allocation to new money lenders - holders of subscription rights          
Reorganization, Chapter 11 [Line Items]          
Issuance of Successor common stock (187)        
Reorganization Adjustments | New second lien facility          
Reorganization, Chapter 11 [Line Items]          
Issuance of the Second Lien Facility (717)        
Fresh Start Adjustments | Continuing operations          
Reorganization, Chapter 11 [Line Items]          
Liabilities subject to compromise 6,119 6,119      
Fresh Start Adjustments | Discontinued operations          
Reorganization, Chapter 11 [Line Items]          
Liabilities subject to compromise $ 118 $ 118      
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Long-Term Debt (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Record the premium on the Term Loan Facility and Second Lien Facility $ 43
Change in long-term debt 951
Term loan facility  
Reorganization, Chapter 11 [Line Items]  
Proceeds from issuance of long term debt 175
New second lien facility  
Reorganization, Chapter 11 [Line Items]  
Proceeds from issuance of long term debt 683
Convertible bonds  
Reorganization, Chapter 11 [Line Items]  
Proceeds from issuance of long term debt $ 50
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Retained Loss (Details) - USD ($)
$ in Millions
 2 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Reorganization, Chapter 11 [Line Items]    
Cancellation of Predecessor equity   $ 0
Issuance of Successor common stock   (1,495)
Retained Earnings    
Reorganization, Chapter 11 [Line Items]    
Cancellation of Predecessor equity $ 3,513 3,513
Issuance of Successor common stock (4) $ 4
Reorganization Adjustments    
Reorganization, Chapter 11 [Line Items]    
Pre-tax gain on settlement of liabilities subject to compromise 3,581  
Reversal of the release of certain general unsecured operating accruals 35  
Payment of success-based advisor fees (28)  
Expense of Predecessor Directors & Officers insurance policy (17)  
Impact to net income 3,571  
Net impact to retained loss $ 7,080  
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Additional Paid-In Capital (Details) - USD ($)
$ in Millions
 2 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Dec. 31, 2020
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock   $ 1,495          
Successor additional paid-in capital $ 1,499 1,499 $ 2,983 $ 1,702 $ 1,499 $ (3,716) $ (3,140)
Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Successor additional paid-in capital 5,066 5,066     1,499    
Holders of prepetition credit agreement claims | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock 1,244            
Additional paid in capital              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock   1,499          
Successor additional paid-in capital 1,499 $ 1,499 $ 2,480 $ 1,499 $ 1,499 $ 0 $ 0
Additional paid in capital | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Fair value of the conversion option on the Convertible Bond 39            
Additional paid in capital | Holders of prepetition credit agreement claims | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock 1,456            
Additional paid in capital | Predecessor Equity Holders | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock $ 4            
v3.24.1
Fresh Start Accounting - Reorganization Adjustments, Fresh Start Adjustments (Details) - USD ($)
$ in Millions
Feb. 22, 2022
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Fresh-Start Adjustments [Line Items]        
Drilling units   $ 2,858 $ 1,668 $ 1,575
Decrease deferred tax liabilities $ 1      
Retained earnings   $ 501 $ 201  
Fresh Start Adjustments        
Fresh-Start Adjustments [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      
Drilling units 279      
Deferred tax asset, adjustment 1      
Record fair value adjustment for favorable drilling and management service contracts 42      
Write-off of non-current portion of historical favorable contracts held at amortized cost (9)      
Write-off of non-current portion of deferred mobilization costs held at amortized cost (4)      
Change in other non-current assets 29      
Record fair value adjustment for unfavorable drilling contracts 18      
Write-off of current portion of historical unfavorable contracts held at amortized cost (1)      
Change in other current liabilities 17      
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      
Retained earnings 242      
Fresh Start Adjustments | Continuing operations        
Fresh-Start Adjustments [Line Items]        
Change in other current assets 20      
Drilling units 316      
Change in other non-current assets 26      
Retained earnings 266      
Fresh Start Adjustments | Discontinued operations        
Fresh-Start Adjustments [Line Items]        
Change in other current assets 11      
Drilling units (37)      
Change in other non-current assets 3      
Retained earnings (24)      
Fresh Start Adjustments | Paratus (Formerly NSNCo)        
Fresh-Start Adjustments [Line Items]        
Fair value adjustment, investments 14      
Fresh Start Adjustments | Sonadrill        
Fresh-Start Adjustments [Line Items]        
Fair value adjustment, investments $ 3      
v3.24.1
Current expected credit losses - Allowance for Credit Losses and Credit Loss Expense- Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Related Party    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable, allowance for credit loss $ 0 $ 1
v3.24.1
Current expected credit losses - Allowance for Credit Losses and Credit Loss Expense (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Accounts receivable, credit loss expense (reversal) $ 1 $ (1) $ 1 $ (34)
Management contract credit/(expense)        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Accounts receivable, credit loss expense (reversal) (1) 1 (1) 36
Other financial items credit        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Accounts receivable, credit loss expense (reversal) $ 0 $ 0 $ 0 $ (2)
v3.24.1
Segment information - Geographic Revenues (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 169 $ 843 $ 1,502 $ 907
United States        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 20 146 446 105
Brazil        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 19 95 343 121
Angola        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 43 220 271 125
Norway        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 78 231 213 486
Canada        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 0 98 0 0
Others        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 9 $ 53 $ 229 $ 70
v3.24.1
Segment information - Geographic Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units $ 2,858 $ 1,668 $ 1,575
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 959 275  
Brazil      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 719 714  
Norway      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 420 312  
Others      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units $ 760 $ 367  
v3.24.1
Segment information - Major Customers (Details) - Contract revenues - Customer concentration risk
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Revenue, Major Customer [Line Items]        
Concentration risk percentage 100.00% 100.00% 100.00% 100.00%
Sonadrill        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 9.00% 21.00% 17.00% 0.00%
Petrobras        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 0.00% 0.00% 16.00% 0.00%
Var Energi        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 11.00% 14.00% 9.00% 0.00%
Equinor        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 10.00% 14.00% 6.00% 15.00%
ConocoPhillips        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 13.00% 13.00% 5.00% 18.00%
Lundin        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 12.00% 1.00% 0.00% 13.00%
Others        
Revenue, Major Customer [Line Items]        
Concentration risk percentage 45.00% 37.00% 47.00% 54.00%
v3.24.1
Revenue from contracts with customers - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Revenue from Contract with Customer [Abstract]      
Accounts receivable, net $ 222 $ 137 $ 169
Current contract liabilities (classified within other current liabilities) (31) (19)  
Non-current contract liabilities (classified within other non-current liabilities) $ (33) $ (42)  
v3.24.1
Revenue from contracts with customers - Significant Changes in Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Contract liabilities, beginning balance $ (35) $ (19) $ (61)
Aquadrill Acquisition     (1)
Amortization of revenue that was included in the beginning contract liability balance 16 9 19
Cash received, excluding amounts recognized as revenue   (51) (21)
Contract liabilities, ending balance $ (19) $ (61) $ (64)
v3.24.1
Revenue from contracts with customers - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Contract liabilities $ 31 $ 19
Contract liabilities $ 33 $ 42
v3.24.1
Other revenues (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Jul. 01, 2022
Variable Interest Entity [Line Items]          
Leasing revenues $ 4 $ 24 $ 33 $ 26  
Inventory sales 0 9 0 0  
Early termination fees 0 0 0 6  
Other 1 6 12 0  
Sonadrill          
Variable Interest Entity [Line Items]          
Investment increase, joint ventures         $ 21
Other          
Variable Interest Entity [Line Items]          
Total other revenues [1] $ 5 $ 39 $ 45 $ 32  
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
Other operating items - Other Operating Items (Details)
$ in Millions
 1 Months Ended 2 Months Ended 10 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Feb. 22, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2021
USD ($)
rig
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]          
Gain on disposals   $ 2 $ 1 $ 14 $ 47
Impairment of long lived assets $ (152) 0 0 0 (152)
Other operating income (1) [1]   0 0 0 54
Total other operating items   $ 2 $ 1 $ 14 $ (51)
Number of rigs disposed of | rig         7
War risk insurance rebate         $ 22
West Bollsta          
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]          
Pre petition liability write off         19
Aquadrill          
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]          
Pre petition liability write off         $ 8
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
Interest expense - Schedule of Interest expense (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Interest Expense [Abstract]        
Cash and payment-in-kind interest on debt facilities $ 0 $ (95) $ (54) $ (25)
Interest on SFL leases (7) 0 0 (84)
Other 0 (3) (5) 0
Interest expense $ (7) $ (98) $ (59) $ (109)
v3.24.1
Interest expense - Cash and Payment-In-Kind Interest (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Debt Instrument [Line Items]        
Cash and payment-in-kind interest $ 0 $ (95) $ (54) $ (25)
$575 million secured bond in issue        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 0 (21) 0
Post-emergence first lien senior secured        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 (14) (12) 0
Post-emergence second lien senior secured        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 (78) (16) 0
Post-emergence unsecured senior convertible bond        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 (3) (5) 0
Pre-filing senior credit facilities        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest $ 0 $ 0 $ 0 $ (25)
v3.24.1
Loss on impairment of long-lived assets (Details)
$ in Millions
 1 Months Ended 2 Months Ended 10 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Feb. 22, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2021
USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]          
Loss on impairment of long-lived assets $ 152 $ 0 $ 0 $ 0 $ 152
Secured credit facility | Discount rate | Discounted cash flow          
Impaired Long-Lived Assets Held and Used [Line Items]          
Fair value, cost of debt percent     0.118    
v3.24.1
Taxation - Components of Income Taxes (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Current tax expense:        
Bermuda $ 0 $ 0 $ 0 $ 0
Foreign 3 15 30 2
Deferred tax benefit:        
Bermuda 0 0 0 0
Foreign (1) (5) (13) (2)
Total tax expense $ 2 $ 10 $ 17 $ 0
Effective tax rate 0.00% 16.00% 5.40% 0.00%
v3.24.1
Taxation - Additional Information (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Feb. 23, 2022
Dec. 31, 2020
Related Party Transaction [Line Items]              
Effective tax rate 0.00% 16.00% 5.40%   0.00%    
Tax benefit, CARES Act         $ 2    
Deferred tax assets, net operating loss carry forwards   $ 296 $ 1,097 $ 296      
Deferred tax assets not subject to expiration   235 675 235      
Deferred tax assets subject to expiration   61 422 61      
Deferred tax liabilities, intangibles   1 0 1      
Valuation allowance   413 1,317 413      
Gross unrecognized tax benefits excluding interest and penalties   82 150 82 $ 83 $ 84 $ 82
Interest and penalties   21 38 21      
Interest and penalties expense (benefit)     6 2      
Unrecognized tax benefits that would have a favorable impact on effective tax rate     170        
Net operating loss carryforward              
Related Party Transaction [Line Items]              
Valuation allowance   $ 285 1,051 $ 285      
Secretariat of the Federal Revenue Bureau of Brazil              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     161        
Nigerian Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     171        
Mexican Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     $ 110        
v3.24.1
Taxation - Income Tax Reconciliation (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Income Tax Disclosure [Abstract]        
Effect of change on unrecognized tax benefits $ 0 $ (5) $ 4 $ 2
Effect of unremitted earnings of subsidiaries (1) 1 1 0
Effect of taxable income in various countries 3 14 12 (2)
Total tax expense $ 2 $ 10 $ 17 $ 0
v3.24.1
Taxation - Deferred Income Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred Tax Assets [Abstract]    
Net operating losses carried forward $ 1,097 $ 296
Property, plant and equipment 210 92
Provisions 37 27
Intangibles 5 0
Pensions and stock options 3 1
Other 11 12
Gross deferred tax assets 1,363 428
Valuation allowance (1,317) (413)
Deferred tax assets, net of valuation allowance 46 15
Deferred Tax Liability [Abstract]    
Unremitted earnings of subsidiaries 9 8
Intangibles 0 1
Gross deferred tax liabilities 9 9
Net deferred tax assets $ 37 $ 6
v3.24.1
Taxation - Changes to Uncertain Tax Positions, Excluding Interest and Penalties (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Changes to liabilities related to unrecognized tax benefits, excluding interest and penalties [Roll Forward]        
Balance at the beginning of the period $ 83   $ 82 $ 82
Increases as a result of acquisition of Aquadrill 0 $ 0 71 0
Increases as a result of positions taken in prior periods 1 1 5 2
Increases as a result of positions taken during the current period 0 0 1 2
Decreases as a result of positions taken in prior periods 0 0 (8) (1)
Decreases due to settlements 0 (1) 0 (1)
Decreases as a result of a lapse of the applicable statute of limitations $ 0 (2) (1) (1)
Balance at the end of the period   $ 82 $ 150 $ 83
v3.24.1
Taxation - Unrecognized tax benefits (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]          
Gross unrecognized tax benefits excluding interest and penalties $ 150 $ 82 $ 84 $ 83 $ 82
Aquadrill interest and penalties acquired 11 0      
Interest and penalties 27 21      
Offset against deferred tax assets (18) (18)      
Total unrecognized tax benefits included as "Other non-current liabilities" $ 170 $ 85      
v3.24.1
Earnings/(loss) per share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Earnings Per Share [Abstract]        
Net loss from continuing operations $ 3,739 $ (73) $ 300 $ (572)
Income/(loss) after tax from discontinued operations (33) 274 0 (15)
Net income/(loss) available to stockholders 3,706 201 300 (587)
Effect of dilution - interest on unsecured senior convertible bond (Note 11) 0 3 5 0
Diluted net income/(loss) available to stockholders $ 3,706 $ 204 $ 305 $ (587)
Basic earnings per share:        
Weighted average number of common shares outstanding (in shares) 100 50 71 100
Diluted earnings per share:        
Effect of dilution (in shares) 0 3 3 0
Weighted average number of common shares outstanding adjusted for the effects of dilution (in shares) 100 53 74 100
Basic loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ 4.23 $ (5.70)
Diluted loss per share from continuing operations (USD per share) 37.25 (1.46) 4.12 (5.70)
Basic loss per share (usd per share) 36.92 4.02 4.23 (5.85)
Diluted loss per share (usd per share) $ 36.92 $ 3.88 $ 4.12 $ (5.85)
v3.24.1
Restricted cash (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Restricted Cash [Line Items]        
Total restricted cash $ 31 $ 118    
Current restricted cash 31 44 $ 85 $ 160
Non-current restricted cash 0 74 $ 69 $ 63
Cash held in escrow        
Restricted Cash [Line Items]        
Total restricted cash 23 23    
Demand deposit pledged as collateral for tax related guarantee        
Restricted Cash [Line Items]        
Total restricted cash 0 74    
Accounts pledged as collateral for performance bonds and similar guarantees        
Restricted Cash [Line Items]        
Total restricted cash 0 10    
Other        
Restricted Cash [Line Items]        
Total restricted cash $ 8 $ 11    
v3.24.1
Other current and non-current assets - Schedule of other current assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Other Assets [Abstract]      
Taxes receivable $ 67 $ 42  
Prepaid expenses 54 37  
Deferred contract costs 41 34  
Pre-funding of MSA manager arrangements 23 0  
Favorable drilling and management services contracts 1 30  
Other 13 26  
Other current assets $ 199 $ 169 $ 197
v3.24.1
Other current and non-current assets - Schedule of noncurrent other assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deferred contract costs $ 44 $ 77  
Favorable drilling and management services contracts 0 12  
Other 12 4  
Total other non-current assets $ 56 $ 93 $ 39
v3.24.1
Other current and non-current assets - Roll forward (Details) - USD ($)
$ in Millions
 10 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Other Assets [Line Items]          
Gross carrying amount, beginning of the period $ 96 $ 96      
PES disposal   (13)      
Aquadrill acquisition   7      
Gross carrying amount, end of the period 96 90      
Accumulated amortization, beginning of the period 0 (54)      
Accumulated amortization, end of the period (54) (89)      
Net carrying amount 42 1 $ 96 $ 96 $ 9
Predecessor          
Other Assets [Line Items]          
Net carrying amount       9  
Fresh Start Adjustments          
Other Assets [Line Items]          
Net carrying amount       $ 87  
Other Assets [Member]          
Other Assets [Line Items]          
Amortization $ (54) $ (35)      
v3.24.1
Investment in associated companies - Ownership Percentage (Details)
$ in Millions
 12 Months Ended
Feb. 24, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
rig
Sep. 30, 2022
Feb. 22, 2022
Jan. 31, 2022
Jan. 20, 2022
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]                
Number of drillships     2          
PES                
Schedule of Equity Method Investments [Line Items]                
Ownership interest prior to disposal (in percent)           65.00%    
Sonadrill                
Schedule of Equity Method Investments [Line Items]                
Number of drillships leased     3          
Gulf Drilling International | Gulfdrill                
Schedule of Equity Method Investments [Line Items]                
Ownership interest (as percent)     50.00%          
Sonadrill                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)   50.00% 50.00%   50.00%     50.00%
Number of drillships     3          
Number of drillships managed     3          
Sonadrill | Joint venture partner                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)   50.00% 50.00%          
Sonadrill | Sonangol                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)     50.00%          
Number of drillships     2          
Gulfdrill                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)   50.00% 50.00%   50.00%     50.00%
Number of premium jack-ups     5          
Gulfdrill | Seadrill Limited                
Schedule of Equity Method Investments [Line Items]                
Number of leased rigs     3          
Gulfdrill | Third party                
Schedule of Equity Method Investments [Line Items]                
Number of leased rigs     2          
Gulfdrill | Joint venture partner                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)   50.00% 50.00%          
PES                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent) 35.00% 35.00% 0.00% 35.00%   35.00% 35.00%  
Realized gain (loss) on disposal | $   $ (112)            
Proceeds from sale of equity method investments | $ $ 44              
Archer | PES                
Schedule of Equity Method Investments [Line Items]                
Ownership interest ( in percent)           15.70%    
v3.24.1
Investment in associated companies - Share in Results from Associated Companies (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Jan. 20, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]          
Income (loss) from equity method investments $ 112 $ (2) $ (2) $ 37 $ 3
Sonadrill          
Schedule of Equity Method Investments [Line Items]          
Income (loss) from equity method investments   1 2 31 5
Gulfdrill          
Schedule of Equity Method Investments [Line Items]          
Income (loss) from equity method investments   0 4 6 (2)
PES          
Schedule of Equity Method Investments [Line Items]          
Income (loss) from equity method investments   $ (3) $ (8) $ 0 $ 0
v3.24.1
Investment in associated companies - Narrative (Details) - USD ($)
$ in Millions
 2 Months Ended 9 Months Ended 10 Months Ended 12 Months Ended
Jan. 20, 2022
Feb. 22, 2022
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 24, 2023
Jan. 31, 2022
Schedule of Equity Method Investments [Line Items]                
Income (loss) from equity method investments $ 112 $ (2)   $ (2) $ 37 $ 3    
PES                
Schedule of Equity Method Investments [Line Items]                
Income (loss) from equity method investments   $ (3)   $ (8) $ 0 $ 0    
Ownership interest ( in percent) 35.00%   35.00% 35.00% 0.00%   35.00% 35.00%
PES                
Schedule of Equity Method Investments [Line Items]                
Income (loss) from equity method investments     $ 8          
v3.24.1
Investment in associated companies - Statement of Operations (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Jan. 20, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]          
Operating revenues   $ 169 $ 843 $ 1,502 $ 907
Net operating income   37 35 329 (156)
Income (loss) from equity method investments $ 112 $ (2) $ (2) $ 37 $ 3
Sonadrill          
Schedule of Equity Method Investments [Line Items]          
Ownership interest ( in percent)   50.00% 50.00% 50.00% 50.00%
Share in results from Sonadrill (net of tax)   $ 1 $ 5 $ 39 $ 5
Basis difference amortization   0 (3) (8) 0
Income (loss) from equity method investments   $ 1 $ 2 $ 31 $ 5
Gulfdrill          
Schedule of Equity Method Investments [Line Items]          
Ownership interest ( in percent)   50.00% 50.00% 50.00% 50.00%
Share in results from Sonadrill (net of tax)   $ 0 $ 4 $ 6 $ (2)
Income (loss) from equity method investments   0 4 6 (2)
Sonadrill          
Schedule of Equity Method Investments [Line Items]          
Operating revenues   14 200 357 94
Net operating income   2 21 101 18
Net income   2 10 79 11
Gulfdrill          
Schedule of Equity Method Investments [Line Items]          
Operating revenues   28 167 199 142
Net operating income   2 14 16 (4)
Net income   $ 1 $ 9 $ 12 $ (4)
v3.24.1
Investment in associated companies - Book Value (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Jan. 20, 2022
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies $ 90 $ 84 $ 64 $ 152
Sonadrill        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies 80 49    
Gulfdrill        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies 10 4    
PES        
Schedule of Equity Method Investments [Line Items]        
Investments in associated companies $ 0 $ 31    
v3.24.1
Investment in associated companies - Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Jul. 01, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 20, 2022
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]              
Current assets $ 1,158 $ 857   $ 903      
Non-current assets 3,060 1,944   2,076      
Current liabilities (389) (404)   (350)      
Non-current liabilities (846) (695)   (1,130)      
Investments in associated companies 90 84   $ 64   $ 152  
Lease liabilities $ 4 $ 9          
Sonadrill              
Schedule of Equity Method Investments [Line Items]              
Ownership interest ( in percent) 50.00% 50.00%     50.00%   50.00%
Book value of Seadrill investment $ 72 $ 33          
Basis difference net of amortization 8 16          
Investments in associated companies $ 80 $ 49          
Lease liabilities     $ 21        
Gulfdrill              
Schedule of Equity Method Investments [Line Items]              
Ownership interest ( in percent) 50.00% 50.00%     50.00%   50.00%
Book value of Seadrill investment $ 10 $ 4          
Investments in associated companies 10 4          
Sonadrill              
Schedule of Equity Method Investments [Line Items]              
Current assets 169 105          
Non-current assets 0 1          
Current liabilities (25) (40)          
Non-current liabilities 0 (1)          
Net assets 144 65          
Gulfdrill              
Schedule of Equity Method Investments [Line Items]              
Current assets 118 110          
Non-current assets 114 80          
Current liabilities (78) (129)          
Non-current liabilities (134) (54)          
Net assets $ 20 $ 7          
v3.24.1
Drilling units (Details) - Drilling units - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2023
Cost          
Opening balance $ 1,575 $ 2,241 $ 1,575 $ 1,575 $ 1,761
Aquadrill acquisition         1,252
Additions   20 210   206
Disposals   (23) (24)   (86)
Derecognition of West Linus (211)        
Closing balance 1,575 1,575 1,761 1,761 3,133
Accumulated depreciation          
Opening balance 0 (810) 0 0 (93)
Depreciation   (17) (93)   (183)
Disposals   23     1
Derecognition of West Linus 36        
Closing balance 0 0 (93) (93) (275)
Net Book Value [Abstract]          
Opening balance 1,575 1,431 1,575 1,575 1,668
Disposals         (85)
Disposal groups   0 (24)    
Derecognition of West Linus (175)        
Closing balance 1,575 1,575 1,668 $ 1,668 $ 2,858
Predecessor          
Cost          
Opening balance   2,238      
Closing balance          
Accumulated depreciation          
Opening balance   (804)      
Closing balance          
Net Book Value [Abstract]          
Opening balance   1,434      
Closing balance          
Fresh Start Adjustments          
Cost          
Opening balance 452   452    
Closing balance   452      
Accumulated depreciation          
Opening balance (768)   (768)    
Closing balance   (768)      
Net Book Value [Abstract]          
Opening balance $ (316)   $ (316)    
Closing balance   $ (316)      
v3.24.1
Equipment (Details) - Equipment - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 23, 2022
Property, Plant and Equipment [Line Items]            
Opening balance $ 39 $ 9 $ 9 $ 13    
Additions     4 3    
Aquadrill acquisition       1    
Closing balance 9 13 13 17 $ 39  
Opening balance (28) 0 0 (3)    
Depreciation     (3) (4)    
Closing balance 0 (3) (3) (7) (28)  
Net book value 9 10 $ 10 $ 10 $ 11 $ 9
Predecessor            
Property, Plant and Equipment [Line Items]            
Opening balance   39        
Closing balance 39          
Opening balance   (28)        
Closing balance (28)          
Net book value 11          
Fresh Start Adjustments            
Property, Plant and Equipment [Line Items]            
Opening balance   (30)        
Closing balance (30)          
Opening balance   $ 28        
Closing balance 28          
Net book value $ (2)          
v3.24.1
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Aug. 31, 2023
Aug. 01, 2023
Jul. 31, 2023
Feb. 23, 2022
Debt Instrument [Line Items]            
Total principal debt $ 625 $ 496        
Premium on bond issuance 1 0        
Debt premium and exit fees: 1 22        
Less: bond issuance costs (18) 0        
Total debt 608 518       $ 951
Debt due within one year 0 22       350
Long-term debt 608 496       179
Secured debt            
Debt Instrument [Line Items]            
Total principal debt 575 446        
Unsecured debt            
Debt Instrument [Line Items]            
Total principal debt 50 50        
$575 million secured bond in issue | Secured debt            
Debt Instrument [Line Items]            
Debt instrument, face amount 575   $ 575 $ 75 $ 500  
Total principal debt 575 0        
Debt premium and exit fees: 0 13        
Total debt           $ 683
Term loan facility | Secured debt            
Debt Instrument [Line Items]            
Total principal debt 0 175        
Debt premium and exit fees: 0 9        
Second lien facility | Secured debt            
Debt Instrument [Line Items]            
Total principal debt 0 271        
Unsecured Convertible Bond - debt component (Level 3) | Unsecured debt            
Debt Instrument [Line Items]            
Total principal debt $ 50 $ 50        
v3.24.1
Debt - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 4 Months Ended 12 Months Ended
Jul. 27, 2023
Feb. 23, 2022
Aug. 31, 2023
Jul. 31, 2023
Jun. 30, 2022
Dec. 31, 2023
Aug. 01, 2023
Dec. 31, 2022
Debt Instrument [Line Items]                
Long-term debt   $ 951,000       $ 608,000   $ 518,000
Total principal debt           625,000   496,000
Secured debt                
Debt Instrument [Line Items]                
Total principal debt           575,000   446,000
$575 million secured bond in issue | Secured debt                
Debt Instrument [Line Items]                
Debt instrument, face amount     $ 575,000 $ 500,000   575,000 $ 75,000  
Debt instrument, interest rate (as percent)     8.375% 8.375%        
Debt instrument, basis spread on variable rate of par     100.75%          
Repayments of debt           123,000    
Long-term debt   $ 683,000            
Basis spread on variable rate (as a percent)   12.50%            
Total principal debt           575,000   $ 0
Debt instrument, debt default, percentage   5.00%            
Payment for debt extinguishment           150,000    
Debt instrument, exit fee           8,000    
$575 million secured bond in issue | Secured debt | Cash                
Debt Instrument [Line Items]                
Basis spread on variable rate (as a percent)   5.00%            
$575 million secured bond in issue | Secured debt | Pay-if-you-can                
Debt Instrument [Line Items]                
Basis spread on variable rate (as a percent)   7.50%            
Five year first lien revolving credit facility | Line of credit | Revolving credit facility                
Debt Instrument [Line Items]                
Debt instrument, term       5 years        
Line of credit facility, accordion feature, increase limit       $ 100,000        
Maximum borrowing capacity       225,000        
Five year first lien revolving credit facility | Line of credit | Letter of credit                
Debt Instrument [Line Items]                
Maximum borrowing capacity       $ 50,000        
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            
Super senior secured credit facility due 2026 | Secured overnight financing rate (SOFR) overnight index swap rate                
Debt Instrument [Line Items]                
Basis spread on variable rate (as a percent)   7.00%            
Super senior secured credit facility due 2026 | Secured debt                
Debt Instrument [Line Items]                
Repayments of debt           187,000    
Gain (loss) on extinguishment of debt           $ (10,000)    
Maximum borrowing capacity   $ 300,000            
Net loss on debt extinguishment $ (10,000)              
Super senior secured credit facility due 2026 | Line of credit | Revolving credit facility                
Debt Instrument [Line Items]                
Long-term debt   125,000            
Line of credit facility, unused capacity, commitment fee percentage         2.80%      
Super senior secured credit facility due 2026 | Line of credit | Secured debt                
Debt Instrument [Line Items]                
Long-term debt   175,000            
Pari passu facility | Secured debt                
Debt Instrument [Line Items]                
Total principal debt   50,000            
Unsecured Convertible Bond - debt component (Level 3) | Unsecured notes                
Debt Instrument [Line Items]                
Long-term debt   $ 50,000            
Basis spread on variable rate (as a percent)   6.00%            
v3.24.1
Other current and non-current liabilities - Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued expenses $ 117 $ 124
Employee withheld taxes, social security and vacation payments 54 47
Taxes payable 33 29
Contract liabilities 31 19
Unfavorable drilling contracts 30 24
Accrued interest expense 21 4
Other liabilities 50 59
Total other current liabilities $ 336 $ 306
v3.24.1
Other current and non-current liabilities - Noncurrent liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Other Liabilities Disclosure [Abstract]      
Uncertain tax positions $ 170 $ 85  
Contract liabilities 33 42  
Unfavorable drilling contracts 22 46  
Other liabilities 4 17  
Other non-current liabilities $ 229 $ 190 $ 171
v3.24.1
Other current and non-current liabilities - Movement in Unfavorable Drilling Contracts (Details) - USD ($)
$ in Millions
 10 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Other Liabilities [Line Items]          
Gross carrying amount beginning balance $ 85 $ 85      
Aquadrill acquisition   49      
Gross carrying amount ending balance 85 134      
Accumulated amortization, beginning balance 0 (15)      
Amortization (15) (67)      
Accumulated amortization, ending balance (15) (82)      
Net carrying amount $ 70 $ 52 $ 85 $ 85 $ 6
Predecessor          
Other Liabilities [Line Items]          
Net carrying amount       6  
Fresh Start Adjustments          
Other Liabilities [Line Items]          
Net carrying amount       $ 79  
v3.24.1
Other current and non-current liabilities - Narrative (Details)
 12 Months Ended
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]  
Weighted average remaining amortization period 22 months
v3.24.1
Other current and non-current liabilities - Unfavorable contracts (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Payables and Accruals [Abstract]  
2024 $ 30
2025 19
2026 3
Amortization of unfavorable contracts $ 52
v3.24.1
Leases - Additional Information (Details)
$ in Millions
 12 Months Ended
Jul. 01, 2022
rig
Dec. 31, 2022
USD ($)
Lessor, Lease, Description [Line Items]    
Number of benign environment Jack-up rigs | rig 3  
West Hercules    
Lessor, Lease, Description [Line Items]    
ROU asset adjustment   $ 9
West Linus    
Lessor, Lease, Description [Line Items]    
ROU asset adjustment   $ 13
v3.24.1
Leases - Future Undiscounted Cash Flows and the related operating lease liability recognized in our Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2024 $ 2  
2025 1  
2026 1  
2027 and thereafter 2  
Total 6 $ 11
Less discount (2) (2)
Operating lease liability $ 4 $ 9
Operating lease liability, current, statement of financial position [extensible enumeration] Other current liabilities Other current liabilities
Current $ 2 $ 3
Operating lease, liability, noncurrent, statement of financial position [extensible enumeration] Other non-current liabilities Other non-current liabilities
Non-current $ 2 $ 6
v3.24.1
Leases - Supplementary Information Regarding Lease Accounting (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Operating lease cost:        
Operating lease cost $ 4 $ 36 $ 4 $ 42
Short-term lease cost 1 3 0 1
Total lease cost 5 39 4 43
Other information:        
Cash paid for lease liabilities- operating cash flows 5 39 4 41
ROU assets obtained in exchange for lease liabilities $ 24 $ 0 $ 0 $ 24
Weighted-average remaining lease term in months 22 months 52 months 47 months 19 months
Weighted-average discount rate 9.00% 10.00% 10.00% 10.00%
v3.24.1
Leases - Operating Leases, Lessor, Future Undiscounted Cash Flows, and Income (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Operating lease payments receivable  
2024 $ 53
2025 47
2026 6
Total $ 106
v3.24.1
Common shares (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 2 Months Ended 12 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2023
Feb. 22, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Equity, Class of Treasury Stock [Line Items]              
Beginning balance (in shares) 49,999,998     100,384,435 49,999,998    
Cancellation of predecessor equity (in shares)   (100,384,435)   (100,384,435)      
Stock issued during period (in shares) 49,999,998     49,999,998      
Share repurchased and cancelled (in shares)         (5,817,579)    
Ending balance (in shares) 49,999,998 49,999,998 74,048,962 49,999,998 74,048,962    
Common shares, par value (in usd per share) $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.10
Cancellation of predecessor equity (usd per share)       0.10      
Issuance of successor common stock (usd per share)       0.01      
Shares repurchased and cancelled (usd per share)         0.01    
Ending balance (usd per share) $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01    
Beginning balance $ 500     $ 10,038 $ 500    
Cancellation of Predecessor equity       0      
Issuance of Successor common stock       1,495,000      
Share repurchased and cancelled         (267,000)    
Ending balance $ 500 $ 500 $ 741 $ 500 $ 741    
Stock repurchased (in shares)     343,619        
Aquadrill              
Equity, Class of Treasury Stock [Line Items]              
Stock issued during period (in shares)         29,866,543    
Issuance of successor common stock (usd per share)         $ 0.01    
Issuance of Successor common stock         $ 299    
Common shares              
Equity, Class of Treasury Stock [Line Items]              
Beginning balance (in shares) 0     0 0    
Ending balance (in shares) 0 0 1,000,000 0 1,000,000    
Share repurchased and cancelled         $ (58)    
Predecessor              
Equity, Class of Treasury Stock [Line Items]              
Beginning balance $ 10,000            
Ending balance   $ 10,000   $ 10,000      
Predecessor | Common shares              
Equity, Class of Treasury Stock [Line Items]              
Beginning balance (in shares) 0     10,000,000 0    
Cancellation of predecessor equity (in shares)       (10,000,000)      
Ending balance (in shares) 0 0 0 0 0    
Cancellation of Predecessor equity       $ (10,038)      
Issuance of Successor common stock       $ 500      
v3.24.1
Common shares- Narrative (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 2 Months Ended 12 Months Ended
Feb. 22, 2022
shares
Dec. 31, 2023
USD ($)
shares
Feb. 22, 2022
shares
Dec. 31, 2023
USD ($)
rig
$ / shares
shares
Nov. 27, 2023
USD ($)
Aug. 14, 2023
USD ($)
Equity, Class of Treasury Stock [Line Items]            
Cancellation of predecessor equity (in shares) 100,384,435   100,384,435      
Stock repurchased and retired during period, shares       5,817,579    
Stock repurchase program, authorized amount | $   $ 500   $ 500    
Stock repurchased (in shares)   343,619        
Number of votes per common share | rig       1    
2023 first tranche            
Equity, Class of Treasury Stock [Line Items]            
Stock repurchased and retired during period, shares       5,817,579    
Stock repurchase program, authorized amount | $           $ 250
Shares acquired, average cost (USD per share) | $ / shares       $ 42.97    
2023 second tranche            
Equity, Class of Treasury Stock [Line Items]            
Stock repurchase program, authorized amount | $         $ 250  
Shares acquired, average cost (USD per share) | $ / shares       $ 45.68    
v3.24.1
Accumulated other comprehensive income/(loss) (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance $ 1,499 $ (3,716) $ 1,499 $ 1,702 $ (3,140)
Other comprehensive income   14 2 (1) 11
Ending balance 1,499 1,499 1,702 2,983 (3,716)
Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance (3,809)   (3,809)    
Ending balance   (3,809)      
Accumulated other comprehensive income/(loss)          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance 0 (15) 0 2 (26)
Other comprehensive income from continuing operations   1      
Other comprehensive loss from discontinued operations   (3)      
Recycling of accumulated other comprehensive loss on sale of PES   16      
Reset accumulated other comprehensive loss 1        
Other comprehensive income     2 (1)  
Ending balance 0 0 2 1 (15)
Accumulated other comprehensive income/(loss) | Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance (1)   (1)    
Ending balance   (1)      
Actuarial gain/(loss) relating to pension          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance 0 (2) 0 2  
Other comprehensive income from continuing operations   1      
Other comprehensive loss from discontinued operations   0      
Recycling of accumulated other comprehensive loss on sale of PES   0      
Reset accumulated other comprehensive loss 1        
Other comprehensive income     2 (1)  
Ending balance 0 0 2 1 (2)
Actuarial gain/(loss) relating to pension | Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance (1)   (1)    
Ending balance   (1)      
Share in unrealized losses from associated companies          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance 0 (19) 0 0  
Other comprehensive income from continuing operations   0      
Other comprehensive loss from discontinued operations   (2)      
Recycling of accumulated other comprehensive loss on sale of PES   21      
Reset accumulated other comprehensive loss 0        
Other comprehensive income     0 0  
Ending balance 0 0 0 0 (19)
Share in unrealized losses from associated companies | Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance 0   0    
Ending balance   0      
Change in debt component on Archer facility          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance 0 6 0 0  
Other comprehensive income from continuing operations   0      
Other comprehensive loss from discontinued operations   (1)      
Recycling of accumulated other comprehensive loss on sale of PES   (5)      
Reset accumulated other comprehensive loss 0        
Other comprehensive income     0 0  
Ending balance 0 0 0 $ 0 $ 6
Change in debt component on Archer facility | Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance $ 0   $ 0    
Ending balance   $ 0      
v3.24.1
Share based compensation - Narrative (Details)
$ / shares in Units, $ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Sep. 25, 2023
installment
shares
Feb. 01, 2023
shares
Feb. 22, 2022
USD ($)
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Mar. 27, 2024
shares
Nov. 17, 2023
$ / shares
Aug. 06, 2022
shares
Feb. 23, 2022
$ / shares
shares
Dec. 31, 2021
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares held (in shares)     0             0
Share price (in USD per share) | $ / shares             $ 41.83      
Share-based compensation expense | $     $ 0 $ 0 $ 12          
Cost not yet recognized | $         $ 25          
Minimum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Cost not yet recognized, period for recognition         2 years          
Maximum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Cost not yet recognized, period for recognition         3 years          
TSR market condition                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Percentage of employees subject to metric achievement 60.00%                  
Performance condition, free cash flow metrics                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Percentage of employees subject to metric achievement 40.00%                  
Management incentive plan (MIP) 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Weighted average modification date fair value (in USD per share) | $ / shares             51.24      
Management incentive plan (MIP) 2022                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Weighted average modification date fair value (in USD per share) | $ / shares             32.48      
LTIP 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Weighted average modification date fair value (in USD per share) | $ / shares             $ 16.96      
Share-based payment arrangement | Company directors and senior management                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Share capital percentage               5.50%    
Share-based payment arrangement | Management incentive plan (MIP) 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Shares authorized for issuance (in shares)               2,910,053    
Share-based payment arrangement | Subsequent event | Management incentive plan (MIP) 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Shares authorized for issuance (in shares)           2,892,987        
Awards subject to service or external market conditions                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares held (in shares)       418,508 660,436       0  
Granted during the period (in shares)       418,508 447,363          
Weighted average remaining contractual term     0 years 2 years 7 months 6 days 1 year 9 months 10 days          
Weighted average modification date fair value (in USD per share) | $ / shares       $ 0 $ 38.98       $ 0  
Awards subject to service or external market conditions | Management incentive plan (MIP) 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Granted during the period (in shares) 125,841                  
Number of equal installments | installment 3                  
Share-based compensation arrangement by share-based payment award, award requisite service period 3 years                  
Awards subject to service or external market conditions | Management incentive plan (MIP) 2022                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares held (in shares)       125,553            
Granted during the period (in shares)         6,412          
Awards subject to service or external market conditions | LTIP 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Granted during the period (in shares)   65,492                
Awards subject to internal performance conditions                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares held (in shares)       0 100,494       0  
Granted during the period (in shares)       0 117,452          
Weighted average remaining contractual term     0 years 0 years 2 years          
Weighted average modification date fair value (in USD per share) | $ / shares       $ 0 $ 41.83       $ 0  
Awards subject to internal performance conditions | Management incentive plan (MIP) 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Granted during the period (in shares) 293,629                  
Awards subject to internal performance conditions | Management incentive plan (MIP) 2023 | Minimum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Share-based compensation arrangement by share-based payment award, award requisite service period 2 years                  
Awards subject to internal performance conditions | Management incentive plan (MIP) 2023 | Maximum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Share-based compensation arrangement by share-based payment award, award requisite service period 3 years                  
Awards subject to internal performance conditions | Management incentive plan (MIP) 2022                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares held (in shares)       292,955            
Granted during the period (in shares)         14,960          
Awards subject to internal performance conditions | LTIP 2023                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Granted during the period (in shares)   58,481                
v3.24.1
Share based compensation - Restricted Stock Unit Activity (Details) - $ / shares
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Shares      
Non-vested restricted share units, beginning balance (in shares) 0 0  
Non-vested restricted share units, ending balance (in shares) 0    
Weighted average Modification Date fair value      
Vested in period, cash settled (in shares)     43,988
Awards subject to service or external market conditions      
Shares      
Non-vested restricted share units, beginning balance (in shares)     418,508
Granted during the period (in shares)   418,508 447,363
Vested during the period (in shares)   0 (135,225)
Forfeited during the period (in shares)   0 (70,210)
Non-vested restricted share units, ending balance (in shares)   418,508 660,436
Weighted average Modification Date fair value      
Weighted average modification date fair value, beginning balance (in USD per share)     $ 0
Weighted average Modification Date fair value, granted during the year (in USD per share)   $ 0 38.74
Weighted average Modification Date fair value, vested during the year (in USD per share)   0 0
Weighted average Modification Date fair value, forfeited during the year (in USD per share)   0 40.11
Weighted average modification date fair value, ending balance (in USD per share)   $ 0 $ 38.98
Weighted average remaining contractual term 0 years 2 years 7 months 6 days 1 year 9 months 10 days
Awards subject to internal performance conditions      
Shares      
Non-vested restricted share units, beginning balance (in shares)     0
Granted during the period (in shares)   0 117,452
Vested during the period (in shares)   0 0
Forfeited during the period (in shares)   0 (16,958)
Non-vested restricted share units, ending balance (in shares)   0 100,494
Weighted average Modification Date fair value      
Weighted average modification date fair value, beginning balance (in USD per share)     $ 0
Weighted average Modification Date fair value, granted during the year (in USD per share)   $ 0 41.83
Weighted average Modification Date fair value, vested during the year (in USD per share)   0 0
Weighted average Modification Date fair value, forfeited during the year (in USD per share)   0 41.83
Weighted average modification date fair value, ending balance (in USD per share)   $ 0 $ 41.83
Weighted average remaining contractual term 0 years 0 years 2 years
v3.24.1
Related party transactions - Narrative (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 24, 2023
Sep. 30, 2022
Jan. 31, 2022
Jan. 20, 2022
Related Party Transaction [Line Items]                
Interest income $ 0 $ 14 $ 35 $ 1        
PES                
Related Party Transaction [Line Items]                
Ownership interest ( in percent)   35.00% 0.00%   35.00% 35.00% 35.00% 35.00%
SeaMex | PES                
Related Party Transaction [Line Items]                
Ownership interest ( in percent)         100.00%   100.00%  
Seabras Sapura | PES                
Related Party Transaction [Line Items]                
Ownership interest ( in percent)             50.00%  
Related Party                
Related Party Transaction [Line Items]                
Interest income       1        
Related Party | SeaMex                
Related Party Transaction [Line Items]                
Total related party receivables       $ 8        
v3.24.1
Related party transactions - Analysis of Related Party Revenues, Operating Expenses, and Financial Items (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Feb. 24, 2023
Sep. 30, 2022
Jan. 31, 2022
Jan. 20, 2022
Related Party Transaction [Line Items]                
Management contract revenue [1] $ 36 $ 203 $ 271 $ 177        
Leasing revenues 4 24 33 26        
Total operating revenues 169 843 1,502 907        
Total related party operating expenses [1] (31) $ (148) $ (200) (174)        
PES                
Related Party Transaction [Line Items]                
Ownership interest ( in percent)   35.00% 0.00%   35.00% 35.00% 35.00% 35.00%
Reimbursable revenues                
Related Party Transaction [Line Items]                
Reimbursable revenues 4 $ 27 $ 32 35        
Other                
Related Party Transaction [Line Items]                
Reimbursable revenues [1] 5 39 45 32        
Related Party                
Related Party Transaction [Line Items]                
Management contract revenue 12 174 225 98        
Leasing revenues 4 24 33 26        
Total operating revenues 19 216 298 189        
Other related party operating expenses 0 0 0 (3)        
Total related party operating expenses (3) 0 0 (70)        
Related Party | Reimbursable revenues                
Related Party Transaction [Line Items]                
Reimbursable revenues 3 12 28 65        
Related Party | Other                
Related Party Transaction [Line Items]                
Reimbursable revenues 0 6 12 0        
West Bollsta | Related Party                
Related Party Transaction [Line Items]                
Operating lease, expense 0 0 0 (57)        
West Hercules | Related Party                
Related Party Transaction [Line Items]                
Operating lease, expense $ (3) $ 0 $ 0 $ (10)        
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
Related party transactions - Analysis of Related Party Receivable Balances (Details) - Related Party - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Related Party Transaction [Line Items]      
Trading balances $ 9 $ 28  
Allowance for expected credit loss 0 (1)  
Total related party receivables 9 27  
Amounts due from related parties - current 9 27 $ 42
Amounts due from related parties - non-current $ 0 $ 0  
v3.24.1
Financial instruments and risk management - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Aug. 31, 2023
Aug. 01, 2023
Jul. 31, 2023
$575 million secured bond in issue | Secured debt        
Derivative [Line Items]        
Debt instrument, face amount $ 575 $ 575 $ 75 $ 500
v3.24.1
Fair values of financial instruments - Carrying Value and Estimated Fair Value of our Financial Instrument at Amortized Cost (Details) - Secured debt - USD ($)
$ in Millions
Dec. 31, 2023
Aug. 31, 2023
Aug. 01, 2023
Jul. 31, 2023
Dec. 31, 2022
$575 million secured bond in issue          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Debt instrument, face amount $ 575 $ 575 $ 75 $ 500  
Level 1 | Fair value | $575 million secured bond in issue          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 597       $ 0
Level 1 | Carrying value | $575 million secured bond in issue          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 558       0
Level 3 | Fair value | $575 million secured bond in issue          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 0       284
Level 3 | Fair value | First Lien Senior Secured (Level 3)          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 0       195
Level 3 | Fair value | Unsecured Convertible Bond - debt component (Level 3)          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 49       46
Level 3 | Carrying value | $575 million secured bond in issue          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 0       284
Level 3 | Carrying value | First Lien Senior Secured (Level 3)          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities 0       184
Level 3 | Carrying value | Unsecured Convertible Bond - debt component (Level 3)          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Liability subject to compromise - Secured credit facilities $ 50       $ 50
v3.24.1
Fair values of financial instruments - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of bond $ 625 $ 496
Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of bond 575 446
$575 million secured bond in issue | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of bond 575 $ 0
$575 million secured bond in issue | Level 1 | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of bond $ 575  
v3.24.1
Fair values of financial instruments - Carrying Value and Estimated Fair Value of our Financial Instrument Measured at Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents $ 697 $ 480 $ 336 $ 293
Current restricted cash 31 44 $ 85 $ 160
Level 1 | Fair value        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 697 480    
Current restricted cash 31 118    
Level 1 | Carrying value        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 697 480    
Current restricted cash 31 118    
Level 2 | Fair value        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative asset - interest rate cap 0 5    
Level 2 | Carrying value        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Derivative asset - interest rate cap $ 0 $ 5    
v3.24.1
Commitment and Contingencies-Narrative (Details)
kr in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Sep. 30, 2023
USD ($)
Mar. 05, 2023
NOK (kr)
Mar. 05, 2023
USD ($)
Aug. 31, 2024
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
contract
rig
Dec. 31, 2022
USD ($)
Nov. 30, 2015
USD ($)
rig
Other Commitments [Line Items]                
Contract value deduction percentage               2.00%
Contract value deduction               $ 69
Number of active contracts | contract           3    
Number of future contracts | contract           1    
Seadrill Serviços de Petróleo Ltda ("Seadrill Brazil") | Tax Year 2009                
Other Commitments [Line Items]                
Loss contingency, damages sought $ 65              
Seadrill Serviços de Petróleo Ltda ("Seadrill Brazil") | Tax Year 2010                
Other Commitments [Line Items]                
Loss contingency, damages sought $ 10              
Seadrill Serviços de Petróleo Ltda ("Seadrill Brazil") | Tax Year 2008, 2012, 2016, and 2017                
Other Commitments [Line Items]                
Loss contingency, damages sought           $ 86    
Nigeria                
Other Commitments [Line Items]                
Number of rigs | rig               3
Sonadrill | Guarantees in favor of customers                
Other Commitments [Line Items]                
Maximum guarantee           $ 1,100 $ 1,100  
Number of rigs | rig           3    
Northern Ocean | Guarantees in favor of customers                
Other Commitments [Line Items]                
Maximum guarantee           $ 100 $ 100  
SFL Hercules Ltd                
Other Commitments [Line Items]                
Loss contingency, damages sought   kr 555 $ 55          
SFL Hercules Ltd | Forecast                
Other Commitments [Line Items]                
Loss contingency, expected trial duration       56 days        
Sonadrill fees claimant                
Other Commitments [Line Items]                
Loss contingency, damages sought         $ 72      
v3.24.1
Discontinued Operations - Summary of net income (loss) from discontinued operations (Details)
$ / shares in Units, $ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
discontinuedOperation
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Long Lived Assets Held-for-sale [Line Items]        
Net income/(loss) after tax from discontinued operations $ (33) $ 274 $ 0 $ (15)
Discontinued operation, gain (loss) on disposal, statement of income or comprehensive income [extensible enumeration]     Net income/(loss) after tax from discontinued operations  
Profit/(loss) before income taxes $ 33 $ (274) $ 0 $ 15
Basic Earning/(loss) per share from discontinued operations (in usd per share) | $ / shares $ (0.33) $ 5.48 $ 0 $ (0.15)
Diluted Earning/(loss) per share from discontinued operations (in usd per share) | $ / shares $ (0.33) $ 5.21 $ 0 $ (0.15)
Number of discontinued operations | discontinuedOperation     2  
PES        
Long Lived Assets Held-for-sale [Line Items]        
Net income/(loss) after tax from discontinued operations $ (4) $ 0 $ 0 $ 5
KSA Business        
Long Lived Assets Held-for-sale [Line Items]        
Net income/(loss) after tax from discontinued operations (29) 8 0 (20)
Gain on disposal of KSA Business 0 276 0 0
Exit cost associated with disposal of KSA Business $ 0 $ 10 $ 0 $ 0
v3.24.1
Discontinued Operations - Cash flows from discontinued operations between our two discontinued operations (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities $ 5 $ 12 $ 0 $ (5)
Net cash (used in)/provided by investing activities 0 (40) 0 23
Net cash provided by financing activities 20 16 0 0
KSA and PES        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (89) 5 0 (5)
Net cash (used in)/provided by investing activities 0 (40) 0 23
Net cash provided by financing activities 20 16 0 0
PES        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (69) 0 0 (18)
Net cash (used in)/provided by investing activities 0 0 0 23
Net cash provided by financing activities 0 0 0 0
KSA Business        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (20) 5 0 13
Net cash (used in)/provided by investing activities 0 (40) 0 0
Net cash provided by financing activities $ 20 $ 16 $ 0 $ 0
v3.24.1
Discontinued Operations - Narrative (Details)
$ in Millions
 1 Months Ended
Jan. 31, 2022
USD ($)
Dec. 31, 2023
Feb. 24, 2023
Dec. 31, 2022
Oct. 31, 2022
rig
Sep. 30, 2022
Sep. 01, 2022
rig
Jan. 20, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Gain on sale of tender rig business | $ $ 112              
Number of jackup units | rig         7   7  
Paratus Energy Services Ltd. (Formerly NSNCo)                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest (as percent) 35.00%         35.00%    
NSNCo noteholders | Paratus Energy Services Ltd. (Formerly NSNCo)                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest prior to disposal (in percent) 65.00%             65.00%
SeaMex | Paratus Energy Services Ltd. (Formerly NSNCo)                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest ( in percent) 100.00%              
Seabras Sapura | Paratus Energy Services Ltd. (Formerly NSNCo)                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest ( in percent) 50.00%              
Archer | Paratus Energy Services Ltd. (Formerly NSNCo)                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest ( in percent) 15.70%              
PES                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest ( in percent) 35.00% 0.00% 35.00% 35.00%   35.00%   35.00%
v3.24.1
Discontinued Operations - Gain on Sale of PES (Details) - PES
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Initial purchase price $ 43
Lender incentive fee 1
Total consideration 44
Less: Book value of PES investment (31)
Less: Management incentive fee intangible (13)
Gain on disposal $ 0
v3.24.1
Discontinued Operations - Gain on Sale of Jackup SPA (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Received/(paid) to date          
Received/(paid) to date $ (94) $ 659 $ 21   $ 0
Jackup SPA [Member]          
Gain on sale          
Initial purchase price, gain on sale       $ 628  
Adjustment for working capital, cash, and reimbursement of reactivation costs, gain on sale       53  
Deal cost, gain on sale       (11)  
Fair value of indemnities and warranties, gain on sale       (36)  
Net sales price, gain on sale       634  
Book value of KSA business, gain on sale       (358)  
Total, gain on sale       276  
Received/(paid) to date          
Initial purchase price, received (paid) to date     0 628  
Adjustment for working capital, cash, and reimbursement of activation costs, received (paid) to date     3 50  
Deal costs, received (paid) to date     0 (11)  
Fair value of indemnities and warranties, received (paid) to date     (25) (8)  
Net sales price, received (paid) to date     (22) 659  
Book value of KSA business, received (paid) to date     0 0  
Received/(paid) to date     $ (22) $ 659  
v3.24.1
Discontinued Operations - Profit and loss statement for the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Selling, general and administrative expenses $ (6) $ (54) $ (74) $ (67)
Reorganization items, net 3,683 (15) 0 (296)
Profit/(loss) before income taxes 33 (274) 0 15
Net income/(loss) after tax from discontinued operations (33) 274 0 (15)
Vessel and rig operating expenses (1)        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Vessel and rig operating expenses [1] (76) (445) (705) (612)
KSA Business        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Contract revenues 18 86 0 101
Total operating revenues 18 86 0 101
Depreciation and amortization (4) (22) 0 (28)
Selling, general and administrative expenses (1) (8) 0 (10)
Total operating expenses (15) (75) 0 (102)
Operating profit/(loss) 3 11 0 (1)
Reorganization items, net (32) 0 0 (14)
Other financial items 0 (1) 0 0
Profit/(loss) before income taxes (29) 10 0 (15)
Income tax expense 0 (2) 0 (5)
Net income/(loss) after tax from discontinued operations (29) 8 0 (20)
KSA Business | Vessel and rig operating expenses (1)        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Vessel and rig operating expenses $ (10) $ (45) $ 0 $ (64)
[1] Includes revenue received from related parties of $298 million, $216 million, $19 million and $189 million, and costs paid to related parties of nil, nil, $3 million, and $70 million for the year ended December 31, 2023, periods February 23, 2022 through December 31, 2022 (Successor), January 1, 2022 through February 22, 2022, and the year ended December 31, 2021 (Predecessor), respectively. Refer to Note 26 – "Related party transactions" for further details.
v3.24.1
Discontinued Operations - Profit and loss statement for Paratus Energy for periods when it was a fully consolidated subsidiary of Seadrill (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Profit/(loss) before income taxes $ 33 $ (274) $ 0 $ 15
Net income/(loss) after tax from discontinued operations (33) 274 0 (15)
PES        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Contract revenues 12 0 0 36
Total operating revenues 12 0 0 36
Total operating expenses (8) 0 0 (27)
Operating profit/(loss) 4 0 0 9
Interest income 0 0 0 18
Interest expense (4) 0 0 (77)
Reorganization items, net (1) 0 0 14
Other financial items (2) 0 0 39
Total financial items (7) 0 0 (6)
Profit/(loss) before income taxes (3) 0 0 3
Income tax expense (1) 0 0 2
Net income/(loss) after tax from discontinued operations $ (4) $ 0 $ 0 $ 5
v3.24.1
Business combination - Narrative (Details)
$ / shares in Units, shares in Millions, $ in Millions
 2 Months Ended 3 Months Ended 10 Months Ended 12 Months Ended
Jul. 28, 2023
USD ($)
Apr. 03, 2023
USD ($)
rig
$ / shares
shares
Feb. 22, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
rig
business_acquisition
Dec. 31, 2021
USD ($)
May 19, 2023
contract
Business Combination Segment Allocation [Line Items]                
Number of businesses acquired | business_acquisition           2    
Number of offshore drilling units owned by the company | rig           19    
Number of tender-assist drilling units sold | contract               3
Proceeds from sales of tender-assist units $ 84   $ 0   $ 0 $ 84 $ 0  
Issuance costs           4    
Initial accounting incomplete, adjustment, financial liabilities           49    
Initial accounting incomplete, adjustment, financial assets, current           6    
Initial accounting incomplete, adjustment, financial assets, non-current           1    
Additional paid in capital                
Business Combination Segment Allocation [Line Items]                
Issuance costs           4    
Aquadrill LLC                
Business Combination Segment Allocation [Line Items]                
Acquisition cost expensed       $ 2 5      
Seadrill Limited                
Business Combination Segment Allocation [Line Items]                
Acquisition cost expensed       $ 3 11      
Seadrill Limited | Aquadrill LLC                
Business Combination Segment Allocation [Line Items]                
Ownership interest (as percent)   37.00%            
Aquadrill LLC                
Business Combination Segment Allocation [Line Items]                
Shares issued on closing of Aquadrill acquisition | shares   29.9            
Consideration settled by tax withholding   $ 30            
Consideration settled in cash   $ 1            
Acquisition cost expensed         $ 3 24    
Cash paid per acquiree share (in USD per share) | $ / shares   $ 41.62            
Aquadrill LLC | Additional paid in capital                
Business Combination Segment Allocation [Line Items]                
Issuance costs           $ 4    
Aquadrill LLC | Drillships                
Business Combination Segment Allocation [Line Items]                
Number of offshore drilling units owned by the company | rig   4            
Aquadrill LLC | Benign environment semi-submersible                
Business Combination Segment Allocation [Line Items]                
Number of offshore drilling units owned by the company | rig   1            
Aquadrill LLC | Tender-Assist Units                
Business Combination Segment Allocation [Line Items]                
Number of offshore drilling units owned by the company | rig   3            
v3.24.1
Business combination - Schedule Of Total Consideration Transferred For Aquadrill (Details)
$ / shares in Units, $ in Millions
Apr. 03, 2023
USD ($)
$ / shares
shares
Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 28,980,417
Company Sale Bonus (in shares) 1,664,743
Total Seadrill shares eligible for purchase of Aquadrill (in shares) 30,645,160
Less: Tax withholding in lieu of common shares (in shares) (744,150)
Less: Seadrill shares settled in cash (in shares) (34,505)
Seadrill shares issued for purchase of Aquadrill (in shares) 29,866,505
Cash paid per acquiree share (in USD per share) | $ / shares $ 41.62
Consideration issued in Seadrill shares (in shares) | $ $ 1,243
Consideration settled by tax withholding | $ 30
Consideration settled in cash | $ 1
Consideration transferred | $ $ 1,274
Aquadrill LLC | Chief Executive Officer  
Business Acquisition [Line Items]  
Seadrill shares issued for purchase of Aquadrill (in shares) 1,013,405
Consideration settled by tax withholding | $ $ 26
Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 20,797,804
Common shares | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 28,258,965
Final Exchange Ration (in shares) 1.41
Common shares | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 20,000,000
Aquadrill restricted stock units | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 172,527
Final Exchange Ration (in shares) 1.41
Aquadrill restricted stock units | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 122,104
Aquadrill phantom award units | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 149,349
Final Exchange Ration (in shares) 1.41
Aquadrill phantom award units | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 105,700
Aquadrill phantom appreciation rights | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 399,576
Final Exchange Ration (in shares) 0.70
Aquadrill phantom appreciation rights | Aquadrill LLC  
Business Acquisition [Line Items]  
Aquadrill outstanding shares as of April 3, 2023 (in shares) 570,000
v3.24.1
Business combination - Summary of Identifiable Assets Acquired and Liabilities Assumed as at Acquisition date - Aquadrill (Details) - Aquadrill LLC
$ in Millions
Apr. 03, 2023
USD ($)
As at Acquisition  
Cash and cash equivalents $ 51
Restricted cash 5
Accounts receivable 60
Other current assets 36
Total current assets 152
Drilling units 1,255
Deferred tax assets 19
Equipment 1
Other non-current assets 5
Total non-current assets 1,280
Total assets acquired 1,432
Trade accounts payable 11
Other current liabilities 69
Total current liabilities 80
Other non-current liabilities 78
Total non-current liabilities 78
Total liabilities assumed 158
Net asset acquired 1,274
Measurement Period Adjustments  
Cash and cash equivalents 0
Restricted cash 0
Accounts receivable 0
Other current assets 7
Total current assets 7
Drilling units (3)
Deferred tax assets 0
Equipment 0
Other non-current assets 0
Total non-current assets (3)
Total assets acquired 4
Trade accounts payable 0
Other current liabilities 4
Total current liabilities 4
Other non-current liabilities 0
Total non-current liabilities 0
Total liabilities assumed 4
Net asset acquired 0
Updated As at Acquisition  
Cash and cash equivalents 51
Restricted cash 5
Accounts receivable 60
Other current assets 43
Total current assets 159
Drilling units 1,252
Deferred tax assets 19
Equipment 1
Other non-current assets 5
Total non-current assets 1,277
Total assets acquired 1,436
Trade accounts payable 11
Other current liabilities 73
Total current liabilities 84
Other non-current liabilities 78
Total non-current liabilities 78
Total liabilities assumed 162
Net asset acquired $ 1,274
v3.24.1
Business combination - Post Merger Operating Results - Aquadrill (Details) - Aquadrill LLC
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Business Combination Segment Allocation [Line Items]  
Operating revenue $ 383
Net income from continuing operations $ 145
v3.24.1
Business combination - Post Merger Operating Results For The Full Period - Aquadrill (Details) - USD ($)
$ / shares in Units, $ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Business Combination Segment Allocation [Line Items]        
Basic loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ 4.23 $ (5.70)
Diluted loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ 4.12 $ (5.70)
Aquadrill LLC        
Business Combination Segment Allocation [Line Items]        
Operating revenue   $ 1,009 $ 1,580  
Net income/(loss) from continuing operations   $ (111) $ 262  
Basic loss per share from continuing operations (USD per share)   $ (1.39) $ 3.34  
Diluted loss per share from continuing operations (USD per share)   $ (1.39) $ 3.29  
v3.24.1
Business combination - Results of operations related to the rigs - Aquadrill (Details) - Aquadrill LLC - USD ($)
$ in Millions
 10 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Business Combination Segment Allocation [Line Items]    
Operating revenue $ 1,009 $ 1,580
Net income/(loss) from continuing operations (111) 262
Tender Rigs [Member]    
Business Combination Segment Allocation [Line Items]    
Operating revenue 10 13
Net income/(loss) from continuing operations $ (3) $ (8)
v3.24.1
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2023
Mar. 22, 2024
Dec. 31, 2023
Nov. 27, 2023
Subsequent Event [Line Items]        
Stock repurchase program, authorized amount $ 500   $ 500  
Stock repurchased (in shares) 343,619      
2023 second tranche        
Subsequent Event [Line Items]        
Stock repurchase program, authorized amount       $ 250
Shares acquired, average cost (USD per share)     $ 45.68  
Subsequent event        
Subsequent Event [Line Items]        
Stock repurchased (in shares)   2,500,000    
Shares acquired, average cost (USD per share)   $ 44.94    
v3.24.1
Label Element Value
Other Assets, Gross sdrl_OtherAssetsGross $ 266,000,000
Other Assets, Gross sdrl_OtherAssetsGross 96,000,000
Gross Carrying Amount Of Unfavorable Contracts To Be Amortized sdrl_GrossCarryingAmountOfUnfavorableContractsToBeAmortized 66,000,000
Gross Carrying Amount Of Unfavorable Contracts To Be Amortized sdrl_GrossCarryingAmountOfUnfavorableContractsToBeAmortized 85,000,000
Accumulated Depreciation, Depletion and Amortization, Other Assets sdrl_AccumulatedDepreciationDepletionAndAmortizationOtherAssets 0
Accumulated Depreciation, Depletion and Amortization, Other Assets sdrl_AccumulatedDepreciationDepletionAndAmortizationOtherAssets 257,000,000
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 0
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 60,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 70,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations 723,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents 653,000,000
Reorganization, Chapter 11, Predecessor, before Adjustment [Member]  
Other Assets, Gross sdrl_OtherAssetsGross 266,000,000
Gross Carrying Amount Of Unfavorable Contracts To Be Amortized sdrl_GrossCarryingAmountOfUnfavorableContractsToBeAmortized 66,000,000
Accumulated Depreciation, Depletion and Amortization, Other Assets sdrl_AccumulatedDepreciationDepletionAndAmortizationOtherAssets 257,000,000
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 60,000,000
Reorganization, Chapter 11, Fresh-Start Adjustment [Member]  
Other Assets, Gross sdrl_OtherAssetsGross (170,000,000)
Gross Carrying Amount Of Unfavorable Contracts To Be Amortized sdrl_GrossCarryingAmountOfUnfavorableContractsToBeAmortized 19,000,000
Accumulated Depreciation, Depletion and Amortization, Other Assets sdrl_AccumulatedDepreciationDepletionAndAmortizationOtherAssets (257,000,000)
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized $ (60,000,000)