SEADRILL LTD, 20-F filed on 4/19/2023
Annual and Transition Report (foreign private issuer)
v3.23.1
Cover page
 12 Months Ended
Dec. 31, 2022
shares
Document Information [Line Items]  
Document Type 20-F
Document Registration Statement false
Document Annual Report true
Document Period End Date Dec. 31, 2022
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 Park Place
Entity Address, Address Line Two 55 Par-la-Ville Road
Entity Address, City or Town Hamilton
Entity Address, Postal Zip Code HM 11
Entity Address, Country BM
Title of 12(b) Security Common Shares, par value $0.01 per share
Trading Symbol SDRL
Security Exchange Name NYSE
Entity Common Stock, Shares Outstanding 49,999,998
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Emerging Growth Company false
ICFR Auditor Attestation Flag true
Document Accounting Standard U.S. GAAP
Entity Bankruptcy Proceedings, Reporting Current true
Entity Central Index Key 0001737706
Document Fiscal Year Focus 2022
Document Fiscal Period Focus FY
Amendment Flag false
Entity Filer Category Large Accelerated Filer
Entity Well-known Seasoned Issuer No
Entity Shell Company false
Business Contact  
Document Information [Line Items]  
Contact Personnel Name Karen Crowe
Entity Address, Address Line One Park Place
Entity Address, Address Line Two 55 Par-la-Ville Road
Entity Address, City or Town Hamilton
Entity Address, Postal Zip Code HM 11
Entity Address, Country BM
City Area Code 441
Local Phone Number 242-1500
v3.23.1
Audit Information
 12 Months Ended
Dec. 31, 2022
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Firm ID 876
Auditor Location United Kingdom
v3.23.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating revenues        
Contract revenues $ 124 $ 574 $ 663 $ 605
Management contract revenue [1] 36 203 177 289
Total operating revenues 169 843 907 961
Operating expenses        
Depreciation (17) (135) (127) (319)
Management contract expense [1] (31) (148) (174) (390)
Merger and integration related expenses 0 (3) 0 0
Selling, general and administrative expenses (6) (54) (67) (74)
Total operating expenses (134) (809) (1,012) (1,358)
Other operating items        
Loss on impairment of long-lived assets 0 0 (152) (4,087)
Loss on impairment of intangibles 0 0 0 (21)
Gain on disposals 2 1 47 15
Other operating income [1] 0 0 54 9
Total other operating items 2 1 (51) (4,084)
Operating profit/(loss) 37 35 (156) (4,481)
Financial and other non-operating items        
Interest income [1] 0 14 1 8
Interest expense (7) (98) (109) (398)
Share in results from associated companies (2) (2) 3 0
Fair value measurement on deconsolidation of VIE 0 0 0 509
Gain/(loss) on derivatives and foreign exchange 9 8 (4) (26)
Reorganization items, net 3,683 (15) (296) 0
Other financial and non-operating items [1] 21 (5) (11) (43)
Total financial and other non-operating items 3,704 (98) (416) 50
(Loss)/Profit before income taxes 3,741 (63) (572) (4,431)
Income tax (expense)/benefit (2) (10) 0 1
Net loss from continuing operations 3,739 (73) (572) (4,430)
Income/(loss) from discontinued operations (33) 274 (15) (233)
Net income/(loss) 3,706 201 (587) (4,663)
Net income/(loss): parent 3,706 201 (587) (4,659)
Net loss: non-controlling interest 0 0 0 (3)
Net loss: redeemable non-controlling interest $ 0 $ 0 $ 0 $ (1)
Basic loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ (5.70) $ (44.11)
Diluted loss per share from continuing operations (usd per share) 37.25 (1.46) (5.70) (44.11)
Basic loss per share (usd per share) 36.92 4.02 (5.85) (46.43)
Diluted loss per share (usd per share) $ 36.92 $ 3.88 $ (5.85) $ (46.43)
Reimbursable revenues        
Operating revenues        
Reimbursable revenues $ 4 $ 27 $ 35 $ 37
Operating expenses        
Expenses (4) (24) (32) (34)
Other revenues        
Operating revenues        
Reimbursable revenues [1] 5 39 32 30
Vessel and rig operating expenses        
Operating expenses        
Expenses $ (76) $ (445) $ (612) $ (541)
[1] Includes revenue received from related parties of $216 million, $19 million, $189 million and $305 million, and costs paid to related parties of nil, $3 million, $70 million, and $12 million for the periods February 23, 2022 through December 31, 2022, January 1, 2022 through February 22, 2022, and the years ended December 31, 2021, and 2020 respectively. Refer to Note 27 - "Related party transactions" for further details.
v3.23.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]        
Net income/(loss) $ 3,706 $ 201 $ (587) $ (4,663)
Other comprehensive loss, net of tax, relating to continuing operations:        
Actuarial gain/(loss) relating to pensions 1 2 0 (2)
Other comprehensive gain/(loss), net of tax, relating to discontinued operations:        
Recycling of accumulated other comprehensive loss on sale of PES 16 0 0 0
Change in fair value of debt component of Archer convertible bond (1) 0 2 4
Share of other comprehensive loss from associated companies (2) 0 9 (15)
Other comprehensive gain/(loss) 14 2 11 (13)
Total comprehensive income/(loss) for the period 3,720 203 (576) (4,676)
Comprehensive gain/loss attributable to the shareholders 3,720 203 (576) (4,672)
Comprehensive loss attributable to the non-controlling interest 0 0 0 (3)
Comprehensive loss attributable to the redeemable non-controlling interest $ 0 $ 0 $ 0 $ (1)
v3.23.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Current assets    
Cash and cash equivalents $ 480,000,000 $ 293,000,000
Restricted cash 44,000,000 160,000,000
Accounts receivable, net 137,000,000 158,000,000
Amount due from related parties, net 27,000,000 28,000,000
Assets held for sale - current 0 1,145,000,000
Other current assets 169,000,000 197,000,000
Total current assets 857,000,000 1,981,000,000
Non-current assets    
Investment in associated companies 84,000,000 27,000,000
Drilling units 1,668,000,000 1,431,000,000
Restricted cash 74,000,000 63,000,000
Deferred tax assets 15,000,000 10,000,000
Equipment 10,000,000 11,000,000
Assets held for sale - non-current 0 347,000,000
Other non-current assets 93,000,000 27,000,000
Total non-current assets 1,944,000,000 1,916,000,000
Total assets 2,801,000,000 3,897,000,000
Current liabilities    
Debt due within one year 22,000,000 0
Trade accounts payable 76,000,000 53,000,000
Liabilities associated with assets held for sale - current 0 983,000,000
Other current liabilities [1] 306,000,000 219,000,000
Total current liabilities 404,000,000 1,255,000,000
Liabilities subject to compromise 0 6,117,000,000
Liabilities subject to compromise associated with assets held for sale 0 118,000,000
Non-current liabilities    
Long-term debt 496,000,000 0
Deferred tax liabilities 9,000,000 9,000,000
Liabilities associated with assets held for sale - non-current 0 2,000,000
Other non-current liabilities [1] 190,000,000 112,000,000
Total non-current liabilities 695,000,000 123,000,000
Commitments and contingencies (see Note 30)
EQUITY    
Common shares of par value US$0.01 per share: 375,000,000 shares authorized and 49,999,998 issued at December 31, 2022 (Successor) 0 10,000,000
Common shares of par value US$0.10 per share: 138,880,000 shares authorized and 100,384,435 issued at December 31, 2021 (Predecessor) 0 10,000,000
Additional paid in capital 1,499,000,000 3,504,000,000
Accumulated other comprehensive income/(loss) 2,000,000 (15,000,000)
Retained earnings/(loss) 201,000,000 (7,215,000,000)
Total equity/(deficit) 1,702,000,000 (3,716,000,000)
Total liabilities and equity $ 2,801,000,000 $ 3,897,000,000
[1] Includes $17 million fair value adjustment of West Gemini off-market lease obligation.
v3.23.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Common shares, par value (in usd per share) $ 0.01 $ 0.10
Common shares, authorized (in shares) 375,000,000 138,880,000
Number of shares (in shares) 49,999,998 100,384,435
Liabilities, fair value adjustment $ 17  
v3.23.1
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, 2021
Dec. 31, 2020
Cash Flows from Operating Activities        
Net income/(loss) $ 3,706 $ 201 $ (587) $ (4,663)
Net loss from continuing operations 3,739 (73) (572) (4,430)
Income/(loss) from discontinued operations (33) 274 (15) (233)
Net operating net loss adjustments related to discontinued operations [1] 38 (262) 10 211
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization 17 135 127 319
Share in results from associated companies 2 2 (3) 0
Gain on disposals (2) (1) (47) (15)
Unrealized (gain)/loss on derivatives and foreign exchange 7 7 (2) (22)
Fair value measurement on deconsolidation of VIE 0 0 0 (509)
Loss on impairment of long-lived assets 0 0 152 4,087
Loss on impairment of intangibles 0 0 0 21
Payment in kind interest 0 30 0 0
Deferred tax benefit (4) (3) (3) (7)
Amortization of discount on debt 7 0 84 121
Change in allowance for credit losses (1) 1 34 144
Non-cash reorganization items (3,487) 0 176 0
Fresh start valuation adjustments (266) 0 0 0
Other cash movements in operating activities:        
Payments for long-term maintenance (2) (83) (55) (110)
Repayments made under lease arrangements (11) 0 (46) 0
Changes in operating assets and liabilities, net of effect of acquisitions and disposals:        
Trade accounts receivable (11) 32 (41) 49
Trade accounts payable 0 23 15 (37)
Prepaid expenses/accrued revenue 0 9 (4) (54)
Deferred revenue (18) 44 7 (5)
Deferred mobilization costs (4) (111) 0 0
Related party receivables (13) (10) (6) (103)
Related party payables 0 0 (7) (5)
Other assets (4) 49 (21) 33
Other liabilities 4 16 59 73
Other, net 0 0 0 8
Net cash provided by/(used in) operating activities (56) 65 (154) (420)
Cash Flows from Investing Activities        
Additions to drilling units and equipment (18) (131) (29) (27)
Purchase of call option for non-controlling interest shares 0 0 0 (11)
Funds advanced to discontinued operations (20) (16) 0 0
Loans granted to related party 0 0 0 (8)
Proceeds from disposal of rigs 2 1 43 0
Net proceeds on disposal of business and cash impact from deconsolidation (94) 659 0 (22)
Net cash (used in)/provided by investing activities - discontinued operations 0 (40) 23 36
Net cash provided by/(used in) investing activities (130) 473 37 (32)
Cash Flows from Financing Activities        
Repayments of secured credit facilities (160) (464) 0 (36)
Purchase of redeemable AOD non-controlling interest 0 0 0 (31)
Proceeds from debt 175 0 0 0
Proceeds from convertible bond issuance 50 0 0 0
Net cash provided by/(used in) financing activities - discontinued operations 20 16 0 (96)
Net cash (used in)/provided by financing activities 85 (448) 0 (163)
Effect of exchange rate changes on cash and cash equivalents 6 (1) (2) (19)
Net increase/(decrease) in cash and cash equivalents, including restricted cash (95) 89 (119) (634)
Cash and cash equivalents, including restricted cash 509 598 604 723
Cash and cash equivalents, including restricted cash, continuing operations 516 [2] 490 [2] 653 [2] 1,205
Cash and cash equivalents, including restricted cash, discontinued operations 19 0 88 70
Supplementary disclosure of cash flow information        
Interest paid 0 (57) 0 (174)
Net taxes paid (1) (5) (3) (10)
Reorganization items, net paid $ (56) $ (13) $ 100 $ 0
[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 are made up of adjustments to reconcile net loss to net cash used in operating activities, other cash movements in operating activities, and changes in operating assets and liabilities, net of effect of acquisitions and disposals. The net cash provided by operating activities 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; December 31, 2020: $22 million used in).
[2] Comprised of cash and cash equivalents as at December 31, 2022 (Successor) $480 million (2021: $293 million, 2020: $485 million), restricted cash $44 million (2021: $160 million, 2020: $103 million), and restricted cash included in non-current assets $74 million (2021: $63 million, 2020: $65 million).
v3.23.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Feb. 23, 2022
Dec. 31, 2019
Statement of Cash Flows [Abstract]            
Net cash used in operating activities related to Discontinued operations $ (5) $ (12) $ 5 $ 22    
Cash and cash equivalents   480 293   $ 336 $ 485
Current restricted cash   44 160 103 85  
Restricted cash   $ 74 $ 63 $ 65 $ 69  
v3.23.1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
Total
Predecessor
Total equity before NCI
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
Non-controlling interest
Beginning balance (in shares) at Dec. 31, 2019 100,234,973     10,000,000              
Beginning balance at Dec. 31, 2019 $ 1,650,000,000   $ 1,499,000,000     $ 3,496,000,000   $ (13,000,000)   $ (1,994,000,000) $ 151,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net loss from continuing operations (4,429,000,000)   (4,426,000,000)             (4,426,000,000) (3,000,000)
Net loss from continuing operations (4,430,000,000)                    
Profit/(loss) from discontinued operations (233,000,000)   (233,000,000)             (233,000,000)  
Other comprehensive loss from continuing operations (2,000,000)   (2,000,000)         (2,000,000)      
Other comprehensive loss from discontinued operations (11,000,000)   (11,000,000)         (11,000,000)      
Fair Value adjustment AOD Redeemable NCI 25,000,000   25,000,000             25,000,000  
Purchase option on non-controlling interest (11,000,000)                   (11,000,000)
Deconsolidation of VIE (137,000,000)                   (137,000,000)
Share-based compensation charge 9,000,000   9,000,000     9,000,000          
Cash settlement for cancellation of share scheme (1,000,000)   (1,000,000)     (1,000,000)          
Ending balance (in shares) at Dec. 31, 2020       10,000,000              
Ending balance at Dec. 31, 2020 (3,140,000,000)   (3,140,000,000)     3,504,000,000   (26,000,000)   (6,628,000,000) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net loss from continuing operations (572,000,000)   (572,000,000)             (572,000,000)  
Profit/(loss) from discontinued operations (15,000,000)   (15,000,000)             (15,000,000)  
Other comprehensive loss from discontinued operations $ 11,000,000   11,000,000         11,000,000      
Ending balance (in shares) at Dec. 31, 2021 100,384,435     10,000,000 10,000,000            
Ending balance at Dec. 31, 2021 $ (3,716,000,000)   $ (3,716,000,000)     3,504,000,000 $ 3,504,000,000 (15,000,000)   (7,215,000,000) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net loss from continuing operations 3,739,000,000                 3,739,000,000  
Profit/(loss) from discontinued operations (33,000,000)                    
Other comprehensive loss from continuing operations 1,000,000             1,000,000      
Other comprehensive loss from discontinued operations (3,000,000)             (3,000,000)      
Recycling of PES AOCI on deconsolidation 16,000,000             16,000,000      
Issuance of Successor common stock 1,495,000,000         1,499,000,000       (4,000,000)  
Cancellation of predecessor equity (in shares)         (10,000,000)            
Cancellation of Predecessor equity $ 0           $ (3,504,000,000) 1,000,000   3,513,000,000  
Ending balance (in shares) at Feb. 22, 2022 49,999,998                    
Ending balance at Feb. 22, 2022 $ 1,499,000,000 $ (3,809,000,000)       1,499,000,000   0 $ (1,000,000)    
Beginning balance (in shares) at Feb. 21, 2022 100,384,435                    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of Successor common stock $ 0                 4,000,000  
Cancellation of predecessor equity (in shares) (100,384,435)                    
Cancellation of Predecessor equity $ (10,000,000)                 3,513,000,000  
Ending balance (in shares) at Feb. 22, 2022 49,999,998                    
Ending balance at Feb. 22, 2022 $ 1,499,000,000 $ (3,809,000,000)       1,499,000,000   0 $ (1,000,000)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net loss from continuing operations (73,000,000)                 (73,000,000)  
Profit/(loss) from discontinued operations 274,000,000                 274,000,000  
Other comprehensive loss from continuing operations $ 2,000,000             2,000,000      
Ending balance (in shares) at Dec. 31, 2022 49,999,998                    
Ending balance at Dec. 31, 2022 $ 1,702,000,000         $ 1,499,000,000   $ 2,000,000   $ 201,000,000  
v3.23.1
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, 2021
Dec. 31, 2020
Income Statement [Abstract]        
Related party revenues $ 19 $ 216 $ 189 $ 305
Total related party operating expenses $ 3 $ 0 $ 70 $ 12
v3.23.1
General information
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General information General information
Seadrill Limited is incorporated in Bermuda. We provide offshore drilling services to the oil and gas industry. As at December 31, 2022, after the October 2022 disposal of the KSA business, we owned 14 drilling rigs, of which three were leased to the Gulfdrill joint venture, one was leased to the Sonadrill joint venture, and two were cold stacked. We also managed a further seven rigs that are owned by third parties: five rigs owned by SeaMex and two rigs owned by Sonangol. Our fleet consists of drillships, jackup rigs and semi-submersible rigs for operations in shallow and deepwater areas, as well as benign and harsh environments.
As used herein, the term "Predecessor" refers to the financial position and results of operations of Seadrill Limited prior to, and including, February 22, 2022. This is also applicable to terms "we", "our", "Group" or "Company" in the context of events on and prior to February 22, 2022. As used herein, the term "Successor" refers to the financial position and results of operations of Seadrill Limited (previously Seadrill 2021 Limited) after February 22, 2022 ("the Effective Date"). This is also applicable to terms "new Successor", "we", "our", "Group" or "Company" in the context of events after February 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 rounded to the nearest million, unless stated otherwise. They include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity ("VIE") where we are the primary beneficiary.
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 will have a major effect on its operations and financial results of the current year and going forward and therefore both were reclassified as discontinued operations and their results reported separately for current and comparative periods. Their assets and liabilities were reclassified as held for sale in all periods presented, and comparative period results, assets, and liabilities have been labelled as "As adjusted."
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 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.
Emergence from Chapter 11 proceedings
On February 22, 2022 (Predecessor), Seadrill Limited and certain of its subsidiaries which filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court ("Debtors"), completed its comprehensive restructuring and emerged from Chapter 11 proceedings. Please refer to Note 4 - "Chapter 11" for further details.
In our previous annual report covering the period to December 31, 2021, we disclosed a substantial doubt as to our ability to continue as a going concern as a result of the fact that we were in Chapter 11 proceedings and there was a degree of inherent risk associated with being in bankruptcy and whether the Plan (as defined herein) would be confirmed. Having now emerged from Chapter 11 proceedings, with a significantly improved capital structure, we believe that cash on hand, contract, and other revenues will generate sufficient cash flows to fund our anticipated debt service and working capital requirements for the next twelve months. Therefore, there is no longer a substantial doubt over our ability to continue as a going concern for at least the next twelve months following the date of issuance of the financial statements.
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.
v3.23.1
Accounting policies
 12 Months Ended
Dec. 31, 2022
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 and/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. 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.
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 them 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 yard 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. Currently, 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. Seadrill and our subsidiaries and affiliates have received written assurance from the Minister of Finance in Bermuda that we will be exempt from taxation until March 2035. 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 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.
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.
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.
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 at 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 that maintain their accounts in 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 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
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 whether the balances have short-term maturities and whether the counterparty has an investment grade credit rating, limiting any credit exposure. 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
In 2020 we adopted the current expected credit loss ("CECL") model which replaced the “incurred loss” model required under the guidance for FY 2019. The 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 27 –" Related party transactions" for details of balances and material transactions with related parties.
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, goodwill or a gain on a bargain purchase is recognized at the acquisition date and is measured as a residual amount. The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed shall be 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, Seadrill would recognize a bargain purchase gain in the income statement 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 32 - "Assets and Liabilities Held for Sale/ Discontinued Operations" for details of disposals during the period.
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". 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 as "loss on marketable securities". 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 operation under the three criteria set out in ASC 205: a) 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 ASC 205 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 32 – "Assets and Liabilities Held for Sale/ 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. The estimated residual value is taken to be offset by any decommissioning costs that may be incurred. 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 3 and 5 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 depreservation activities and one-time major equipment overhaul or replacement of systems and equipment, certain directly identifiable personnel costs and costs to move rigs from stacking locations to the shipyards are capitalized and depreciated over the remaining lives of the rigs. General and administrative and overhead costs related to reactivation projects are accounted for as operating expenses.
Rig upgrade costs that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rigs. Costs incurred to install equipment or modify to current rig specifications that will not increase the marketability of the rig beyond the current contract, and rig mobilization costs, are deferred and amortized over the initial contract period.
The cost of reactivation project related long-term maintenance (LTM) activities such as major classification surveys and other major certifications are capitalized and depreciated over a period of between 2 and 5 years (depending on the period covered by the re-certification).
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, nor expect to 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 lessee. 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).
Absent an impairment of the ROU asset, the single lease cost is calculated so that the remaining cost of the lease is allocated over the remaining lease term on straight-line basis. Seadrill assesses a ROU asset 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 was included in determining the appropriate lease term to apply. Options to renew our lease terms are included in determining the right-of-use asset and lease liability when it is reasonably certain that we will exercise that option.
•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, nor expect to have any leases classified as sales-type or direct financing. For our operating lease, 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 less accumulated amortization. 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. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset is its new accounting basis. Refer to Note 16 – "Other assets". Our intangible liabilities include unfavorable drilling contracts and unfavorable leasehold improvements. Refer to Note 21 – "Other liabilities".
Derivative financial instruments and hedging activities
Our derivative financial instruments are measured at fair value and are not designated as a hedging instruments. Changes in fair value are recorded as a gain or loss as a separate line item within "financial items" in the Consolidated Statements of Operations. Refer to Note 28 – "Financial instruments and risk management".
Trade payables
Trade payables are liabilities to a supplier for a good or service provided to us.
Deferred charges
Loan related costs, including debt issuance, arrangement fees and legal expenses, are capitalized and presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, amortized over the term of the related loan. The amortization is included in interest expense. On emergence from Seadrill's previous Chapter 11 in 2018, our loan costs were reduced to nil. We recognized a discount on our debt to reduce its carrying value to its fair value. The debt discount was due to be unwound over the remaining terms of the debt facilities.
Debt
We have financed a significant proportion of the cost of acquiring our fleet of drilling units through the issue of debt instruments. 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. On emergence from the Chapter 11, we issued new debt instruments. Refer to Note 20 – "Debt" for more information on our debt instruments.
Pension benefits
We have several defined benefit pension plans, defined contribution pension plans and other post-employment benefit obligations which provide retirement, death and early termination benefits. We recognize the service cost, as “Vessel and rig operating expenses” or as "Selling, general and administrative expenses" in our Consolidated Statements of Operations depending on the whether or not the related employee's role is directly attributable to rig activities.
Several defined benefit pension plans cover a number of our Norwegian employees that are all administered by a life insurance company. Our net obligation is calculated by estimating the amount of the future benefit that employees have earned in return for their cumulative service. The aggregated projected future benefit obligation is discounted to present value, from which the aggregated fair value of plan assets is deducted. The discount rate is the market yield at the balance sheet date on government bonds in the relevant currency and based on terms consistent with the post-employment benefit obligations.
We record the actuarial gains and losses in the Consolidated Statements of Operations when the net cumulative unrecognized actuarial gains or losses for each individual plan at the end of the previous reporting year exceed 10 percent of the higher of the present value of the defined benefit obligation and the fair value of plan assets at that date. These actuarial gains and losses are recognized over the expected remaining
working lives of the employees participating in the plans. Otherwise, recognition of actuarial gains and losses is included in other comprehensive income. Those amounts will be subsequently recognized as a component of net periodic pension cost on the same basis as the amounts recognized in accumulated other comprehensive income.
On retirement, or when an employee leaves the company, the member’s pension liability is transferred to the life insurance company administering the plan, and the pension plan no longer retains an obligation relating to the leaving member. This action is deemed to represent a settlement under U.S. GAAP, as it represents the elimination of significant risks relating to the pension obligation and related assets. Under settlement accounting, the portion of the net unrealized actuarial gains/losses corresponding to the relative value of the obligation reduction is recognized through the Consolidated Statement of Operations. However, settlement accounting is not required if the cost of all settlements in a year is not deemed to be significant in the context of the plan. We deem the settlement not to be significant when the cost of settlements in the year is less than the sum of service cost and interest cost in the year. In this case, the difference between the reduction in benefit obligation and the plan assets transferred to the life insurance company is recognized within “Other Comprehensive Income,” rather than being recognized in the Consolidated Statement of Operations.
Loss contingencies
We recognize a loss contingency in the Consolidated Balance Sheets where we have a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Refer to Note 30 – "Commitments and contingencies".
Treasury shares
Treasury shares are recognized at cost as a component of equity. We record the nominal value of treasury shares purchased as a reduction in share capital. The amount paid in excess of the nominal value is treated as a reduction of additional paid-in capital. Upon Seadrill's previous emergence from Chapter 11 in 2018, we no longer had any treasury shares.
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 (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. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. 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.
v3.23.1
Recent Accounting Standards
 12 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Standards Recent Accounting Standards
1) Recently adopted accounting standards
We adopted the following accounting standard update ("ASUs") since the reporting date of our Form 20-F report (for the year ended December 31, 2021 (Predecessor)), which had no material impact on our Consolidated Financial Statements.
ASU 2020-06 - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
Simplifies the guidance in U.S. GAAP on the issuer’s accounting for convertible debt instruments. Under current guidance, applying the separation models in ASC 470-20 to convertible instruments with a beneficial conversion feature or a cash conversion feature involves the recognition of a debt discount, which is amortized to interest expense. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. Seadrill does not have any instruments with beneficial conversion or cash conversion feature. Accordingly, adoption of this standard had no impact on the financial statements.
ASU 2021-05 - Lessors - Certain Leases with Variable Lease Payments
Requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate (hereafter referred to as “variable payments”) as an operating lease on the commencement date of the lease if specified criteria are met. Seadrill does not have any sales-type or direct financing leases.
ASU 2021-08 - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Requires contract assets and liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured on the
acquisition date in accordance with ASC 606. The Company elected to early adopt and apply this standard as of January 1, 2022 as it is relevant to the emergence from Chapter 11 bankruptcy and application of fresh-start accounting. The Company’s deferred revenues balances were evaluated on the basis of ASC 606 at the measurement date (in accordance with ASU 2021-08). No adjustment was made on transition.
ASU 2022-03 - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions
Clarifies that a “contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security” and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value (i.e., the entity should not apply a discount related to the contractual sale restriction). In addition, the ASU prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Seadrill does not apply any discounts related to contractual sale restrictions.
ASU 2022-04 - Liabilities - Supplier Finance Programs
The amendments in this ASU address investor and other financial statement user requests for additional information about the use of supplier finance programs by the buyer party to understand the effect of those programs on an entity’s working capital, liquidity, and cash flows. Seadrill does not have any supplier finance programs.
ASU 2022-05 - Financial Services - Insurance (Topic 944)
The Board is issuing this Update to reduce implementation costs and complexity associated with the adoption of long-term duration contracts ("LDTI") for contracts that have been derecognized in accordance with the amendments in this update before the LDTI effective date. Not applicable to Seadrill. Only relates to insurance entities.
ASU 2020-04, 2021-01, 2022-06 - Reference Rate Reform (Topic 848)
Regulators and market participants in various jurisdictions have undertaken efforts, generally referred to as reference rate reform, to eliminate certain reference rates and introduce new reference rates that are based on a larger and more liquid population of observable transactions. As a result of the reference rate reform initiative, certain widely used reference rates such as LIBOR are expected to be discontinued. This Topic and associated updates provide optional expedients for applying the guidance for contract modifications or other situations affected by reference rate reform. This is not relevant as Seadrill's contracts are linked to the new reference rates and management has not identified any contracts that are affected by the reference rate reform.
2) Recently issued accounting standards
v3.23.1
Chapter 11
 12 Months Ended
Dec. 31, 2022
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 restructuring outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the “Plan Support Agreement”) with certain holders of claims under the Company’s 12 prepetition credit facilities (the “Prepetition Credit Agreements”), and Hemen Holdings Ltd (“Hemen”). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the “Disclosure Statement”) and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the “New Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the New First Lien Facility, and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the “Rights Offering”).
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the “Backstop Parties” and together, the “Rights Offering Participants”), received the right to lend up to $300 million under the New First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted Shares as of the
Effective Date. The New First Lien Facility was structured as (i) a $175 million term loan (the “Term Loan Facility”) and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted Shares as of the Effective Date (the “Equity Commitment Premium”); and (b) paid in cash a premium (the “Commitment Premium”) equal to 7.50% of the $300 million in total commitments under the New First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the “Convertible Bond”) was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the “Conversion Shares”) at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital. Upon conversion, the Company reclassified the liability component to equity with no gain or loss recognized.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the Convertible Bond, the Company issued 83.00% of the Company’s equity to Class 4 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 disposed of 65% of its equity interest in NSNCo, recognizing its 35% retained interest as an equity method investment. The ceding of control occurred 9 days prior on January 11, 2022, the petition date when the Bankruptcy Court first assumed the power to approve all significant actions in the entity. Separately, the determination of held-for-sale and discontinued operations was made at year end and described in the 2021 Form 20-F. Subsequent to its emergence from its pre-packaged bankruptcy, NSNCo was renamed Paratus Energy Services Ltd ("Paratus" or "PES").
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd (“SFL”), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements.
The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig 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 pre-petition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise include the following:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Senior under-secured external debt— 5,662
Accounts payable and other liabilities— 36
Accrued interest on external debt— 34
Amount due to related party— 503
Liabilities subject to compromise— 6,235
Liabilities subject to compromise are presented on the Consolidated Balance Sheet as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor) as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Liabilities subject to compromise— 6,117 
Liabilities subject to compromise associated with assets held for sale— 118 
Total liabilities subject to compromise— 6,235 
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 are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the period from February 23, 2022 through December 31, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), year ended December 31, 2021 (Predecessor) and year ended December 31, 2020.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
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)—
Gain on write-off of related party payables————
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 included extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. 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, 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 Seadrill to present its assets, liabilities, and equity at their reorganization value amounts as of the date of emergence from bankruptcy on February 22, 2022. However, the Company will continue to present financial information for any periods before the adoption of Fresh Start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as is required in ASC Topic 205, Presentation of Financial Statements (“ASC 205”). ASC 205 states that financial statements are required to be presented comparably from year to year, with any exceptions to comparability clearly disclosed. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Reorganization Value
Under Fresh Start accounting, we allocated the reorganization value to Seadrill's individual assets based on their estimated fair values in conformity with ASC Topic 805, Business Combinations (''ASC 805''), and ASC Topic 820, Fair Value Measurement. Deferred income taxes were calculated in conformity with ASC Topic 740, Income Taxes (''ASC 740''). Reorganization value is viewed as the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Enterprise value represents the estimated fair value of an entity’s shareholders’ equity plus long-term debt and other interest-bearing liabilities less unrestricted cash and cash equivalents. As set forth in the Disclosure Statement approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $1,795 million and $2,396 million, with a mid-point of $2,095 million. For U.S. GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital (“WACC”), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares & 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 New Term Loan Facility and New Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible 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 EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt—951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the New Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise (1)
6,237
Payment of the AOD cash out option(116)
Issuance of the New 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
(1) Attributable to:
Continuing operations6,119
Discontinued operations118
(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 New Second Lien Facility683
Issuance of the Convertible Bond50
Record the exit fee on the Term Loan Facility and New 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 Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.1
Fresh Start Accounting
 12 Months Ended
Dec. 31, 2022
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 restructuring outside of this bankruptcy.
ii. Plan of Reorganization
On July 23, 2021, the Company entered into a Plan Support and Lock-Up Agreement (the “Plan Support Agreement”) with certain holders of claims under the Company’s 12 prepetition credit facilities (the “Prepetition Credit Agreements”), and Hemen Holdings Ltd (“Hemen”). On July 24, 2021, the Company filed the first versions of the Joint Chapter 11 Plan of Reorganization and Disclosure Statement. On August 31, 2021, the Company filed the First Amended Plan of Reorganization and the First Amended Disclosure Statement (the “Disclosure Statement”) and on September 2, 2021, the Court approved the First Amended Disclosure Statement (as Modified) and the solicitation of the Plan of Reorganization. On October 11, 2021, the Company’s creditor classes voted to accept the plan of reorganization. On October 26, 2021, Seadrill’s Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
iii. Amendment to terms of existing facilities
The Plan, among other things, provided that holders of allowed Credit Agreement claims (a) received $683 million (adjusted for the Asia Offshore Drilling Limited ("AOD") cash out option) of take-back debt (the “New Second Lien Facility”) and (b) were entitled to participate in a $300 million new-money raise under the New First Lien Facility, and (c) received 83.00% of pre-diluted equity in successor Seadrill on account of their allowed Credit Agreement claims, and 16.75% of equity in successor Seadrill for such holders participation in a rights offering (the “Rights Offering”).
iv. Rights Offering and backstop of new $300 million facility
Holders of the subscription rights, which included the backstop parties (the “Backstop Parties” and together, the “Rights Offering Participants”), received the right to lend up to $300 million under the New First Lien Facility. The Rights Offering Participants also received, in consideration for their participation in the Rights Offering, 12.50% of the issued and outstanding pre-diluted Shares as of the
Effective Date. The New First Lien Facility was structured as (i) a $175 million term loan (the “Term Loan Facility”) and (ii) a $125 million revolving credit facility.
As consideration for the backstop commitment of each Backstop Party, the Backstop Parties were (a) issued 4.25% of the issued and outstanding pre-diluted Shares as of the Effective Date (the “Equity Commitment Premium”); and (b) paid in cash a premium (the “Commitment Premium”) equal to 7.50% of the $300 million in total commitments under the New First Lien Facility. The Commitment Premium was revised to $20 million and paid within one business day following the backstop approval order on October 27, 2021.
v. Hemen $50 million convertible bond
$50 million aggregate principal amount of convertible bond (the “Convertible Bond”) was issued to Hemen at par upon emergence. The Convertible Bond is convertible into Shares (the “Conversion Shares”) at an initial conversion rate of 52.6316 Shares per $1,000 principal amount of the Convertible Bond, subject to certain adjustments. The Convertible Bond is convertible (in full and not in part) into the Conversion Shares at the option of the lender on any business day that is ten business days prior to the maturity of the Convertible Bond.
Management considered the accounting treatment for the Conversion using the embedded derivative model, substantial premium model, and the no proceeds allocated model. The Company determined that on the Effective Date that the substantial premium model was applicable, and the recognition of the Convertible Bond should follow the treatment prescribed under this model. Pursuant to the substantial premium model, the principal was recorded as a liability at par and the excess premium was recorded to additional paid-in-capital. Upon conversion, the Company reclassified the liability component to equity with no gain or loss recognized.
vi. Emergence and New Seadrill equity allocation table
Seadrill met the requirements of the Plan and emerged from Chapter 11 proceedings on the Effective Date.
Under the Plan and prior to any equity dilution on conversion of the Convertible Bond, the Company issued 83.00% of the Company’s equity to Class 4 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 disposed of 65% of its equity interest in NSNCo, recognizing its 35% retained interest as an equity method investment. The ceding of control occurred 9 days prior on January 11, 2022, the petition date when the Bankruptcy Court first assumed the power to approve all significant actions in the entity. Separately, the determination of held-for-sale and discontinued operations was made at year end and described in the 2021 Form 20-F. Subsequent to its emergence from its pre-packaged bankruptcy, NSNCo was renamed Paratus Energy Services Ltd ("Paratus" or "PES").
Renegotiation of leases with SFL
Under the sale and leaseback arrangements with certain subsidiaries of SFL Corporation Ltd (“SFL”), the semi-submersible rigs West Taurus and West Hercules and the jackup rig West Linus were leased to certain wholly owned Seadrill entities under long term charter agreements.
The Chapter 11 proceedings afforded Seadrill the option to reject or amend the leases.
On March 9, 2021, the West Taurus lease rejection motion was approved by the Bankruptcy Court, and the rig was redelivered to SFL on May 6, 2021, in accordance with the West Taurus settlement agreement. The lease termination led to a remeasurement of the outstanding amounts due to SFL held within liabilities subject to compromise to the claim value which was settled at emergence.
On August 27, 2021, the Bankruptcy Court of the Southern District of Texas entered an approval order for an amendment to the original SFL Hercules charter. The amended charter was accounted for as an operating lease, resulting in the recognition of a ROU asset and an associated lease liability. The removal of the call options and purchase obligations meant that sale recognition was no longer precluded.
In February 2022, Seadrill signed a transition agreement with SFL pursuant to which the West Linus rig 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 pre-petition liabilities which may be affected by the Chapter 11 proceedings from those that will not. The liabilities held as subject to compromise are disclosed on a separate line on the consolidated balance sheet.
Liabilities subject to compromise include the following:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Senior under-secured external debt— 5,662
Accounts payable and other liabilities— 36
Accrued interest on external debt— 34
Amount due to related party— 503
Liabilities subject to compromise— 6,235
Liabilities subject to compromise are presented on the Consolidated Balance Sheet as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor) as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Liabilities subject to compromise— 6,117 
Liabilities subject to compromise associated with assets held for sale— 118 
Total liabilities subject to compromise— 6,235 
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 are classified as "Reorganization items, net" in the Consolidated Statements of Operations. The following table summarizes the reorganization items recognized in the period from February 23, 2022 through December 31, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), year ended December 31, 2021 (Predecessor) and year ended December 31, 2020.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
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)—
Gain on write-off of related party payables————
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 included extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. 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, 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 Seadrill to present its assets, liabilities, and equity at their reorganization value amounts as of the date of emergence from bankruptcy on February 22, 2022. However, the Company will continue to present financial information for any periods before the adoption of Fresh Start accounting for the Predecessor. The Predecessor and Successor Companies lack comparability, as is required in ASC Topic 205, Presentation of Financial Statements (“ASC 205”). ASC 205 states that financial statements are required to be presented comparably from year to year, with any exceptions to comparability clearly disclosed. Therefore, “black-line” financial statements are presented to distinguish between the Predecessor and Successor Companies.
Reorganization Value
Under Fresh Start accounting, we allocated the reorganization value to Seadrill's individual assets based on their estimated fair values in conformity with ASC Topic 805, Business Combinations (''ASC 805''), and ASC Topic 820, Fair Value Measurement. Deferred income taxes were calculated in conformity with ASC Topic 740, Income Taxes (''ASC 740''). Reorganization value is viewed as the value of the reconstituted entity before considering liabilities and it approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring.
Enterprise value represents the estimated fair value of an entity’s shareholders’ equity plus long-term debt and other interest-bearing liabilities less unrestricted cash and cash equivalents. As set forth in the Disclosure Statement approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $1,795 million and $2,396 million, with a mid-point of $2,095 million. For U.S. GAAP purposes, we valued our individual assets, liabilities, and equity instruments using valuation models and determined the value of the enterprise was $2,095 million as of the Effective Date, which fell in line within the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of Fresh Start accounting, are described in greater detail within the valuation process below.
The following table reconciles the enterprise value to the estimated fair value of the Successor’s common shares as of the Effective Date:
(In $ millions, except per share amount)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Less: Fair value of long-term debt(951)
Implied value of Successor equity
1,499
Shares issued upon emergence
49,999,998
Per share value (US$)
29.98
The following table reconciles enterprise value to the reorganization value of the Successor (i.e., value of the total assets of the Successor) as of the Effective Date:
(In $ millions)
As at February 23, 2022
(Successor)
Enterprise value2,095
Plus: Cash and cash equivalents at emergence355
Plus: Non-interest-bearing current liabilities350
Plus: Non-interest-bearing non-current liabilities
179
Total value of Successor Entity's assets on Emergence
2,979
The enterprise value and corresponding equity value are derived from expected future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially.
Valuation Process
To apply Fresh Start accounting, we conducted an analysis of the Consolidated Balance Sheet to determine if any of our net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our drilling units, equipment, drilling and management services contracts, leases, investments in associated companies, certain working capital balances and long-term debt would require a fair value adjustment on the Effective Date. Any deferred tax on the fair value adjustments have been made in accordance with ASC 740. The rest of our net assets were determined to have carrying values that approximated fair value on the Effective Date. Further details regarding the valuation process are described below.
i. Drilling units
Seadrill's principal assets comprise its fleet of drilling units. For the working fleet, we determined the fair value of drilling units based primarily on an income approach utilizing a discounted cash flow analysis. For long-term cold stacked units, we have applied a market approach methodology. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the contracted and market dayrates, operating costs, overheads, economic utilization, effective tax rates, capital expenditures, working capital requirements, and estimated useful economic lives.
The cash flows were discounted at a market participant weighted average cost of capital (“WACC”), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs expected to be long-term stacked, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets.
ii. Capital Spares & 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 New Term Loan Facility and New Second Lien Facility were determined using relevant market data as of the Effective Date and the terms of each of the respective instruments. Given the interest rates for both facilities were outside of the range of assumed market rates, we selected discount rates based on the data and used a yield to worst case analysis to estimate the fair values of the respective instruments.
The fair value of the Convertible 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 EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt—951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the New Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise (1)
6,237
Payment of the AOD cash out option(116)
Issuance of the New 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
(1) Attributable to:
Continuing operations6,119
Discontinued operations118
(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 New Second Lien Facility683
Issuance of the Convertible Bond50
Record the exit fee on the Term Loan Facility and New 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 Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.1
Current expected credit losses
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Current expected credit losses Current expected credit losses
The CECL model applies to our external trade receivables and related party receivables. Our external customers are international oil companies, national oil companies and large independent oil companies. The following table summarizes the movement in the allowance for credit losses for the year ended December 31, 2022 (Successor).
 (In $ millions)
Allowance for credit losses - other current assetsAllowance for credit losses - related party STAllowance for credit losses related party LTTotal Allowance for credit losses
January 1, 2021 (Predecessor)3 148 2 153 
Credit loss expense/(credit)— 36 (2)34 
Write-off(1)/(2)
(3)(183)— (186)
December 31, 2021 (Predecessor)— 1 — 1 
Credit loss expense— 1 — 1 
February 22, 2022 (Predecessor)— 2 — 2 
February 23, 2022 (Successor)— 2 — 2 
Credit loss credit— (1)— (1)
December 31, 2022 (Successor)— 1 — 1 
(1) In April 2021 we signed a settlement agreement with Aquadrill (formerly Seadrill Partners) which waived all claims on pre-petition positions held and resulted in a write-off of $54 million of trading receivables.
(2) Following the cancellation of the Wintershall contract, a settlement agreement was reached with Northern Ocean to extinguish all outstanding claims. The agreement became effective in December 2021 resulting in the write-off of $129 million of trading receivables and $3 million of reimbursement receivables.
The below table shows the classification of the credit loss expense within the Consolidated Statements of Operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Management contract expenses(1)1 (36)(142)
Other financial items— — 2 (2)
Total(1)1 (34)(144)
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. There was no change in allowances for external or related party trade receivables. The expected credit loss allowance on related party balances as at December 31, 2022 (Successor) was $1 million (December 31, 2021 (Predecessor): $1 million).
v3.23.1
Segment information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment information Segment information
We use the management approach to identify our operating segments. We identified the Board of Directors as the Group’s Chief Operating Decision Maker ("CODM") which regularly reviews internal reports when making decisions about allocation of resources to segments and in assessing their performance.
We have the following three reportable segments:
1.Harsh environment: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for harsh environment semi-submersible and jackup rigs.
2.Floaters: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for benign environment semi-submersible rigs and drillships.
3.Jackups: Includes contract revenues, management contract revenue, reimbursable revenue and associated expenses for benign environment jackup rigs.
Segment results are evaluated on the basis of operating income and the information presented below is based on information used for internal management reporting. The remaining incidental revenues and expenses not included in the reportable segments are included in the "other" reportable segment.
The below section splits out total operating revenue, depreciation, amortization of intangibles, impairment of drilling units and intangible assets, operating net loss, drilling units and capital expenditures by segment:
Total operating revenue
Operating revenues consist of contract revenues, reimbursable revenues, management contract revenues and other revenues. The segmental analysis of operating revenues is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment331 78 495 526 
Floaters463 85 363 358 
Jackup rigs47 6 38 59 
Other2 — 11 18 
Total843 169 907 961 
Depreciation and amortization
We record depreciation expense to reduce the carrying value of drilling unit and equipment balances to their residual value over their expected remaining useful economic lives and amortization of favorable and unfavorable contracts over the remaining lives of the contracts. The segmental analysis of depreciation is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment46 7 73 94 
Floaters75 6 37 176 
Jackups14 4 16 20 
Other— — 1 29 
Total135 17 127 319 
Impairment of drilling units and intangible 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. The segmental analysis of impairment is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment— — 152419 
Floaters— — — 3,555 
Jackups— — — 86 
Other— — — 48 
Total— — 152 4,108 
Operating income/(loss)
The segmental analysis of operating (losses)/income is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Harsh environment16 16 (138)(396)
Floaters20 9 (21)(3,781)
Jackups9 9 17 (86)
Other(10)3 (14)(218)
Operating income/(loss)35 37 (156)(4,481)
Unallocated items:   
Total financial items and other(98)3,704 (416)50 
(Loss)/income from continuing operations before income taxes(63)3,741 (572)(4,431)
Drilling assets - Total assets
The segmental analysis of drilling assets and total assets is shown in the table below.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Harsh environment rigs312 709 
Floaters1,198 524 
Jackup rigs158 198 
Total drilling units1,668 1,431 
Unallocated items:
Investments in associated companies84 27 
Assets held for sale— 1,492 
Cash and restricted cash598 516 
Other assets451 431 
Total assets2,801 3,897 
Drilling units - Capital expenditures
The segmental analysis of capital expenditures, including long term maintenance projects, is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment14 2 30 26 
Floaters200 18 35 110 
Jackups— — 19 1 
Total214 20 84 137 

Geographic segment data
Revenues
Revenues are attributed to geographical segments based on the country where the revenues are generated. The following presents our revenues and fixed assets by geographic area:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Norway231 78 486 480 
Angola220 43 125 89 
United States146 20 105 107 
Canada98 — — — 
Brazil95 19 121 51 
Others (1)
53 9 70 234 
Total revenue843 169 907 961 
(1)Other countries represent countries each with less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (1)
Drilling unit fixed assets by geographic area based on location as at end of the year are as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Brazil714 169 
Norway312 710 
United States275 92 
Qatar144 156 
Others223 304 
Total1,668 1,431 
(1)Asset locations at the end of a period are not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during such period.
(2)Other 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
In the years ended December 31, 2022 (Successor), 2021 and 2020 (Predecessor), we had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorPredecessor
SegmentPeriod from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
SonadrillFloater21 %9 %— %— %
EquinorHarsh Environment14 %10 %15 %13 %
ConocoPhillipsHarsh Environment13 %13 %18 %18 %
Var EnergiHarsh Environment14 %11 %— %— %
LundinFloater1 %12 %13 %2 %
Northern OceanHarsh Environment— %— %4 %13 %
Others37 %45 %50 %54 %
100 %100 %100 %100 %
v3.23.1
Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2022
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:
SuccessorPredecessor
(In $ millions)December 31, 2022 December 31, 2021
Accounts receivable, net137 158 
Current contract liabilities (deferred revenues) (1)
(19)(25)
Non-current contract liabilities (deferred revenues) (1)
(42)(10)
(1)Current contract liabilities and non-current contract liabilities are included in “Other current liabilities” and “Other non-current liabilities” respectively in our Consolidated Balance Sheets.
Significant changes in the contract liabilities balances during the year ended December 31, 2021 were as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2021 (Predecessor)  (31)
Amortization of revenue that was included in the beginning contract liability balance  24 
Cash received, excluding amounts recognized as revenue(28)
Net contract liability at December 31, 2021 (Predecessor)  (35)
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 $19 million reported in "Other current liabilities" as at December 31, 2022 is expected to be realized within the next 12 months and the $42 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.
v3.23.1
Other revenues
 12 Months Ended
Dec. 31, 2022
Revenues [Abstract]  
Other revenues Other revenues
Other revenues consist of the following:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Leasing revenues (i)
24 4 26 19 
Inventory Sales (ii)
9 — — — 
Early termination fees (iii)
— — 6 11 
Other (iv)
6 1 — — 
Total other revenues39 5 32 30 
i.Leasing revenues
Revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our related parties. Refer to Note 27 – "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 during the year.
iii. Early termination fees
Early termination fees were received in 2021 for the West Bollsta and in 2020 for the West Gemini.
iv. Other
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. 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.
v3.23.1
Other operating items
 12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Abstract]  
Other operating items Other operating items
Other operating items consist of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Impairment of long lived assets (i)
— — (152)(4,087)
Impairment of intangibles (ii)
— — — (21)
Gain on disposals (iii)
1 2 47 15 
Other operating income (iv)
— — 54 9 
Total other operating items1 2 (51)(4,084)
i. 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"
In 2020, we determined the global impact of the COVID-19 pandemic, and continued down cycle in the offshore drilling industry, were indicators of impairment on certain assets. Following assessments of recoverability in March 2020 and December 2020, we recorded total impairment charges of $4,087 million against our drilling fleet.
ii. Impairment of intangibles
On December 1, 2020, Seadrill Partners (now Aquadrill) announced it had filed a voluntary petition under Chapter 11. Under Chapter 11 we were required to continue to provide the management services only at market rate. We concluded that we no longer had a favorable contract and the intangible asset relating to Seadrill Partners was fully impaired.
iii. Gain on disposals
Following the impairments recognized in 2020, Seadrill disposed of seven rigs in 2021, and one rig in 2020, all of which had previously been impaired in full. The full consideration, less costs to sell, was recognized as a gain
The gains on disposal in 2022 Successor period relate to the sale of sundry assets of West Tucana and West Carina and to the sale of capital spares on the West Hercules and parts on the West Navigator. The gains on disposal in the Predecessor period related to the sale of the West Venture on January 19, 2022.
iv. Other operating income
Other operating income consists of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Pre-petition liabilities write-off (a)
— — 27 — 
War risk insurance rebate (b)
— — 22 — 
Loss of hire insurance settlement (c)
— — 2 9
Other— — 3 — 
Total other operating income— — 54 9 
a) Prepetition liabilities write-off
Write-off of prepetition 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.
b) War risk insurance rebate
Receipt of $22 million distribution from The Norwegian Shipowners' Mutual War Risks Insurance Association ("DNK"), representing a rebate of past premium paid.
c) Loss of hire insurance settlement
The 2021 insurance gain relates to excess recovery on the physical damage claimed on the Sevan Louisiana. The 2020 gain relates to the settlement of a claim on our loss of hire insurance policy following an incident on the Sevan Louisiana.
v3.23.1
Interest expense
 12 Months Ended
Dec. 31, 2022
Interest Expense [Abstract]  
Interest expense Interest expense
Interest expense consists of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Cash interest on debt facilities (a)
(95)— (25)(256)
Interest on SFL leases (b)
— (7)(84)(12)
Unwind of discount debt— — — (44)
Write off of discount on debt (c)
— — — (86)
Guarantee and commission fees(3)— — — 
Interest expense(98)(7)(109)(398)
(a) Cash interest on debt facilities
We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Pre-filing senior credit facilities— — (25)(229)
Pre-filing debt of consolidated variable interest entities— — — (27)
Post-emergence first lien senior secured(14)— — — 
Post-emergence second lien senior secured(78)— — — 
Post-emergence unsecured senior convertible bond(3)— — — 
Cash and payment-in-kind interest(95)— (25)(256)
Our pre-filing senior credit facilities incurred interest at LIBOR plus a margin. For periods after July 2, 2018, this margin increased by one percentage point following the emergence from the Previous Chapter 11 Proceedings. On February 7, 2021, after filing for Chapter 11, we recorded contractual interest payments against debt held as subject to compromise ("adequate protections payments") as a reduction to debt in the Consolidation Balance sheet and not as an expense to Consolidated Statement of Operations. For further information on our bankruptcy proceedings refer to Note 4 - "Chapter 11" of our Consolidated Financial Statements included herein.
Our First lien senior secured facility has a maturity of December 15, 2026 and consists of a $175 million term loan facility and a $125 million revolving credit facility ("RCF"). The term loan facility bears interest at a margin of 7% per annum plus the secured overnight financing rate ("SOFR") (and any applicable credit adjustment spread). The RCF bears interest at a margin of 7% per annum plus the SOFR (and any applicable credit adjustment spread), and commitment fee of 2.8% per annum is payable in respect to any undrawn portion of the RCF commitment.
Our Second lien senior secured facility bears interest at a total margin of 12.5% per annum plus the SOFR (and any applicable credit adjustment spread), and it has a maturity of June 15, 2027. The margin comprises two components: 5% cash interest and 7.5% pay-if-you-can ("PIYC") interest, whereby Seadrill either pays the PIYC interest in cash or the equivalent amount is capitalized as principal outstanding (dependent on certain conditions set out in the facility agreement).

Our unsecured senior convertible bond has a maturity of August 2028 and bears interest, payable quarterly in cash, at three-month US LIBOR plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the convertible bond. If not converted, a bullet repayment will become due on the maturity date.
(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.

(c) Write off of discount on debt
In September 2020 and December 2020, there were non-payments of interest on our secured credit facilities that constituted an event of cross-default. The event of default resulted in the expense of unamortized debt discount of $86 million in 2020.
v3.23.1
Loss on impairment of long-lived assets
 12 Months Ended
Dec. 31, 2022
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.
In 2020, the significant decrease in the price of oil due to the actions of OPEC and its partners combined with the global impact of the COVID-19 pandemic resulted in expected decreases in utilization going forward and downward pressure on dayrates. We concluded that an impairment triggering event had occurred for our drilling unit fleet and, based on the results of further testing, recorded an impairment charge of $4.1 billion.
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 rigs 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 lives of the assets and discounted using an estimated market participant weighted average cost of capital "WACC" of 11.8%. To estimate these fair values, we were required to use various unobservable inputs including assumptions related to the future performance of our rigs 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.
v3.23.1
Taxation
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Taxation Taxation
 Income taxes consist of the following:
 SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Current tax expense/(benefit):   
Bermuda— — — — 
Foreign15 3 2 6 
Deferred tax expense/(benefit):
Bermuda— — — — 
Foreign(5)(1)(2)(7)
Deferred taxes acquired during the year— — — — 
Tax related to internal sale of assets in subsidiary, amortized for group purposes— — — — 
Total tax expense/(benefit)10 2 — (1)
Effective tax rate16.0 %— %— %— %
 
The effective tax rate for the period from February 23, 2022 through December 31, 2022 (Successor), period from January 1, 2022 through February 22, 2022 (Predecessor), the year ended December 31, 2021 (Predecessor) and the year ended December 31, 2020 (Predecessor) was 16.0%,0%, 0% and 0% respectively.
We are incorporated in Bermuda, where a tax exemption has been granted until 2035. Other jurisdictions in which we and our subsidiaries operate are taxable based on rig operations. A loss in one jurisdiction may not be offset against taxable income in another jurisdiction. Thus, we may pay tax within some jurisdictions even though we might have losses in others.
Due to the CARES Act in the US, we recognized a tax benefit in 2022 Successor and Predecessor periods of nil (2021 (Predecessor): $2 million) which included the release of valuation allowances previously recorded and carrying back net operating losses to previous years.
The income taxes for the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the year ended December 31, 2021 and the year ended December 31, 2020 (Predecessor) differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows:
 SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Effect of change on unrecognized tax benefits (5)— 2 (8)
Effect of unremitted earnings of subsidiaries1 (1)— (2)
Effect of taxable income in various countries14 3 (2)9 
Total tax expense/(benefit)10 2 — (1)
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/(liabilities) consist of the following:
Deferred tax assets:
SuccessorPredecessor
(In $ millions)December 31, 2022 December 31, 2021
Pensions and stock options1 3 
Provisions27 30 
Property, plant and equipment92 51 
Net operating losses carried forward296 320 
Other12 9 
Gross deferred tax assets428 413 
Valuation allowance(413)(403)
Deferred tax assets, net of valuation allowance15 10 
Deferred tax liabilities:
Successor Predecessor
(In $ millions)December 31, 2022 December 31, 2021
Unremitted Earnings of Subsidiaries8 8 
Intangibles1 1 
Gross deferred tax liabilities9 9 
Net deferred tax asset/(liability)6 1
 As at December 31, 2022 (Successor), deferred tax assets related to net operating loss (“NOL”) carryforward was $296 million (December 31, 2021 (Predecessor): $320 million), which can be used to offset future taxable income. NOL carryforwards which were generated in various jurisdictions, include $235 million (December 31, 2021 (Predecessor): $234 million) that will not expire and $61 million (December 31, 2021 (Predecessor): $86 million) that will expire between 2023 and 2039 if not utilized.
As at December 31, 2022 (Successor), deferred tax liability related to intangibles from the application of fresh start accounting was $1 million (December 31, 2021 (Predecessor): $1 million).
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 $285 million on NOL carryforwards as at December 31, 2022 (Successor) (December 31, 2021 (Predecessor): $320 million).
Uncertain tax positions
As at December 31, 2022 (Successor), we had a total amount of unrecognized tax benefits of $85 million excluding interest and penalties. The changes to our balance related to unrecognized tax benefits were as follows:
SuccessorPredecessor
 (In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Balance at the beginning of the period84 83 82 89 
Increases as a result of positions taken in prior periods3 1 2 1 
Increases as a result of positions taken during the current period— — 2 — 
Decreases as a result of positions taken in prior periods— — (1)(4)
Decreases due to settlements— — (1)(1)
Decreases as a result of a lapse of the applicable statute of limitations(2)— (1)(3)
Balance at the end of the period85 84 83 82 
Accrued interest and penalties totaled $21 million at December 31, 2022 (Successor) (December 31, 2021 (Predecessor): $19 million) and were included in "Other liabilities" on our Consolidated Balance Sheets. We recognized expenses of $2 million and $1 million during the year ended December 31, 2022 (Successor) and the year ended December 31, 2021 (Predecessor), respectively, related to interest and penalties for unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statement of Operations.
As of December 31, 2022 (Successor), $85 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 $114 million including interest and penalties. As a positive development in relation to the earlier years' assessments, the first-tier judicial court has ruled in favor of Seadrill. However, an appeal has since been filed by the tax authorities to the second-tier judicial court. The relevant group companies are robustly contesting these assessments including filing the relevant appeals to the tax authorities and counter-appeal to the higher court. 
The Norwegian tax authorities have issued an assessment with respect to our 2016 tax return for an aggregate amount equivalent to $15 million including interest and penalties. The relevant group company is robustly contesting the assessment including filing relevant appeal which has been partially accepted by the tax authorities in their latest decision.
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. The relevant group companies are robustly contesting these assessments including filing relevant appeals in Nigeria.
The Kuwaiti tax authorities have issued a series of assessments with respect to our returns for years up to 2015 for an aggregate amount equivalent to $12 million including interest and penalties. The relevant company is robustly contesting these assessments including filing relevant appeals. Although the relevant company has been sold as part of the Jackup Sale, Seadrill has indemnified ADES for this exposure.
The Mexican tax authorities have issued a series of assessments with respect to our returns for certain years up to 2014 for an aggregate amount equivalent to $82 million. The relevant group companies 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 other major taxable jurisdictions in which we operate. 
JurisdictionEarliest Open Year
Kuwait2012
Nigeria2014
United States2018
Mexico2011
Norway2015
Brazil2009
v3.23.1
Earnings/(loss) per share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings/(loss) per share loss) per share
The computation of basic earnings/(loss) per share ("EPS/LPS") is based on the weighted average number of shares outstanding during the period. Diluted EPS/LPS includes the effect of the assumed conversion of potentially dilutive instruments. There were no dilutive instruments in the Predecessor period, but the issuance of the convertible note in the Successor period is 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)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Net loss/(profit) from continuing operations (73)3,739 (572)(4,430)
Profit/(loss) from discontinued operations 274 (33)(15)(233)
Net profit/(loss) available to stockholders201 3,706 (587)(4,663)
Effect of dilution - interest on unsecured senior convertible bond (Note 11)3 — — — 
Diluted net profit/(loss) available to stockholders204 3,706 (587)(4,663)
The components of the denominator for the calculation of basic and diluted EPS/LPS are as follows:
SuccessorPredecessor
(In millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Basic earnings/(loss) per share:
Weighted average number of common shares outstanding50 100 100 100 
Diluted earnings/(loss) per share:
Effect of dilution3 — — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution53 100 100 100 
The basic and diluted EPS/LPS are as follows:     
SuccessorPredecessor
(In $)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Basic/Diluted EPS: continuing operations ($)(1.46)37.25 (5.70)(44.11)
Basic EPS ($)4.02 36.92 (5.85)(46.43)
Diluted EPS ($)3.88 36.92 (5.85)(46.43)
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.
v3.23.1
Restricted cash
 12 Months Ended
Dec. 31, 2022
Restricted Cash and Investments [Abstract]  
Restricted cash
Note 15 – Restricted cash
Restricted cash consists of the following:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Demand deposit pledged as collateral for tax related guarantee74 63 
Cash held in escrow23 23 
Accounts pledged as collateral for performance bonds and similar guarantees10 28 
Accounts pledged as collateral for guarantees related to rig recycling— 14 
Proceeds from rig sales— 47 
Accounts pledged as collateral for SFL Leases— 37 
Other11 11 
Total restricted cash118 223 
Restricted cash is presented in our Consolidated Balance Sheets as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Current restricted cash44 160 
Non-current restricted cash74 63 
Total restricted cash118 223 
v3.23.1
Other assets
 12 Months Ended
Dec. 31, 2022
Other Assets [Abstract]  
Other assets
Note 16 – Other assets
As at December 31, 2022 (Successor) and 2021 (Predecessor), other assets included the following: 
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Deferred contract costs111 15 
Taxes receivable42 48 
Favorable drilling and management services contracts42 9 
Prepaid expenses37 51 
Right of use asset9 24 
Reimbursable amounts due from customers8 13 
Derivative asset - interest rate cap5 — 
Restructuring backstop commitment fee— 20 
Other8 44 
Total other assets262 224 
Other assets are presented in our Consolidated Balance Sheets as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Other current assets169 197 
Other non-current assets93 27 
Total other assets262 224 
Favorable drilling contracts and management services contracts
The following table summarizes the movement in favorable drilling contracts and management services contracts for the year ended December 31, 2021 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, 2021 (Predecessor)266 (256)10 
Amortization— (1)(1)
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 
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 5 - "Fresh Start Accounting". The amortization is recognized in the Consolidated Statements of Operations as "Amortization of intangibles". The weighted average remaining amortization period for the favorable contracts is 5 months. The remaining favorable drilling contracts and management services contracts will be fully amortized in 2023.
v3.23.1
Investment in associated companies
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Investment in associated companies Investment in associated companies  
We have the following investments in associated companies:
SuccessorPredecessor
Ownership percentageDecember 31, 2022December 31, 2021
Paratus Energy Services Ltd (i)
35 %100 %
Gulfdrill (ii)
50 %50 %
Sonadrill (iii)
50 %50 %
We own 50% equity interests in Gulfdrill and Sonadrill and a 35% equity interest in Paratus Energy Services Ltd ("PES") (formerly NSNCo). We account for our 50% and 35% investments under the equity method. For transactions with related parties refer to Note 27 - "Related party transactions".
i. Paratus Energy Services Ltd
Paratus Energy Services Ltd ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 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. In connection with the sale, on March 14, 2023, Seadrill also 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 (“SML”), dated January 20, 2022 (the “Paratus MSA”), and (ii) the Master Services Agreement by and among SeaMex Holdings, certain operating companies party thereto and SML, dated January 20, 2022 (the “SeaMex MSA”), respectively. The Paratus MSA will terminate effective July 12, 2023; and the SeaMex MSA will terminate effective September 10, 2023. We do not believe these terminations will have a material effect on the financial condition of the Company
For further information on Seadrill's comprehensive restructuring, including the disposal of the 65% interest in Paratus Energy Services, please refer to Note 4 - "Chapter 11".
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. 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, 2022, 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 $21 million 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.
Share in results from associated companies
Our share in results of our associated companies were as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)
PES(8)(3)— — 
Sonadrill2 1 5 (2)
Gulfdrill4 — (2)2 
Total share in results from associated companies (net of tax)(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. As a result, we do not anticipate any 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 equity method investees
The results of Sonadrill and our share in those results is summarized below:
SonadrillSuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating revenues200 14 94 56 
Net operating income/(loss)21 2 18 (2)
Net income/(loss)10 2 11 (5)
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Sonadrill (net of tax)5 1 5 (2)
Basis difference amortization(3)— — — 
Net share in results from Sonadrill2 1 5 (2)
The results of Gulfdrill and our share in those results is summarized below:
GulfdrillSuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating revenues167 28 142 44 
Net operating income/(loss)14 2 (4)6 
Net income/(loss)9 1 (4)4 
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Gulfdrill (net of tax)4 — (2)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:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
PES
31 — 
Sonadrill49 27 
Gulfdrill4 — 
Total84 27 
After Seadrill emerged from Chapter 11 proceedings and applied Fresh Start accounting, the book value of Seadrill's investment in PES was reduced to $39 million. Seadrill's share of post-emergence PES losses of $8 million further reduced the carrying value of the investment to $31 million. Seadrill agreed to sell its investment in PES as of September 30, 2022, and the carrying value of the equity method investment in PES at this time, along with related balances, approximately equaled the agreed sales price.
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:
SonadrillSuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Current assets105 72 
Non-current assets1 — 
Current liabilities(40)(18)
Non-current liabilities(1)— 
Net Assets65 54 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment33 27 
Basis difference net of amortization (i)
16 — 
Net book value of Seadrill investment49 27 
(i) As discussed above, 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:
GulfdrillSuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Current assets110 120 
Non-current assets80 173 
Current liabilities(129)(182)
Non-current liabilities(54)(113)
Net assets/(liabilities)7 (2)
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment4 — 
v3.23.1
Drilling units
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Drilling units Drilling units
Changes in drilling units for the periods presented in this report were as follows:
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2021 (Predecessor)2,673 (918)1,755 
Additions84 — 84 
Depreciation— (119)(119)
Impairment (1)
(152)— (152)
Derecognition of West Hercules (2)
(364)227 (137)
As at January 1, 2022 (Predecessor)2,241(810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23— 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (2)
(211)36(175)
Fresh Start accounting (3)
(452)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) In June 2021 we recorded an impairment of $152 million (December 31, 2020: $4.1 billion) which was reported within "Loss on impairment of long-lived assets" on our Consolidated Statement of Operations. Please refer to Note 12 – "Loss on impairment of long-lived assets" for further details.
(2) The lease agreements with SFL for the West Hercules and West Linus were amended such that the rigs were derecognized from drilling units in August 2021 and February 2022 respectively and replaced with right of use assets within other assets. The West Linus and West Hercules were returned to SFL in September 2022 and December 2022 respectively.
(3) On emergence from Chapter 11 proceedings, the carrying values of our drilling units were adjusted to fair value as a result of the implementation of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. Refer to Note 5 - "Fresh Start Accounting" for further information.
v3.23.1
Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Equipment Equipment
Equipment consists of office equipment, software, furniture and fittings. Changes in equipment balances for the periods presented in this report were as follows:
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2021 (Predecessor) 39 (20)19 
Depreciation— (8)(8)
As at December 31, 2021 (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 
v3.23.1
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
The table below sets our external debt agreements as at December 31, 2022 (Successor) and 2021 (Predecessor):
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Secured debt:
Secured Credit Facilities— 5,545 
Term Loan Facility175 — 
Second Lien Facility271 — 
Total Secured debt 446 5,545 
Unsecured bond
Unsecured senior convertible bond50 — 
Total unsecured bond50 — 
Total principal debt 496 5,545 
Exit fee
Term Loan Facility9 — 
Second Lien Facility13 — 
Total exit fee22 — 
Less: Debt reported as liabilities subject to compromise (1)
— (5,545)
Total debt518 — 
(1) Certain subsidiaries filed for Chapter 11 bankruptcy protection on February 7, 2021 and February 10, 2021. As a result, the outstanding balance of the senior credit facilities were classified within liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheet at December 31, 2021. For further information on our bankruptcy proceedings refer to Note 4 - "Chapter 11".
Debt is presented in our Consolidated Balance Sheets as:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Debt due within one year22 — 
Long-term debt496 — 
Total debt 518 — 
Key changes to borrowing facilities
Term Loan and Revolving Credit Facility
On emergence, we entered into a $300 million super senior secured credit facility with a syndicate of lenders secured on a first lien basis. The facility has a maturity of December 15, 2026 and consists of a $175 million term loan facility and a $125 million revolving credit facility ("RCF"), which was not drawn down as at December 31, 2022 (nor has it been drawn to date). The term loan facility and RCF, if drawn, bear interest at a margin of 7% per annum plus the secured overnight financial rate facility ("SOFR") (and any applicable credit adjustment spread). A commitment fee of 2.8% per annum is payable in respect of any undrawn portion of the RCF commitment. The facility includes an undrawn, uncommitted basket in amount of $50 million for incremental facilities pari passu with the facility for specified purposes. There is a 3% exit fee payable on principal repayments under the super senior credit facility; in addition, there is a make-whole premium payable if the facility is repaid within the first 3 years. We have recognized exit fees of $9 million in respect to the facility as at December 31, 2022.
New Second Lien Facility
On emergence, we entered into a senior secured credit facility with a syndicate of lenders to partially reinstate the existing facilities in an aggregate amount of $683 million, secured on a second lien basis. The facility bears interest at a total margin of 12.5% per annum plus SOFR (and any applicable credit adjustment spread), and has a maturity of June 15, 2027. The above-mentioned margin is comprised of 5% cash interest; and 7.5% pay-if-you-can ("PIYC") interest, whereby, under certain liquidity conditions set out in the facility agreement, Seadrill is either required to pay the interest in cash or capitalize the interest to the principal outstanding. The PIYC interest compounds to the loan quarterly. There is a 5% exit fee required on this facility. As at December 31, 2022, we have recognized exit fees of $13 million in respect to the facility. During 2022, $29 million payment-in-kind interest was capitalized. A mandatory payment of debt principal of $192 million and exit fee of $10 million was made against the second lien facility in October 2022. A further voluntary payment of debt principal of $250 million and exit fee of $13 million was made against the second lien facility in November 2022. Two further voluntary payments were made against the second lien facility in 2023; refer to Note 33 – Subsequent events for further details.
Unsecured senior convertible bond
On emergence, 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 three-month US LIBOR plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the convertible bond. If not converted, a bullet repayment will become due on the maturity date.
Debt maturities
The outstanding debt as at December 31, 2022 (Successor) was repayable as follows, for the years ended December 31:
(In $ millions)Term LoanSecond LienConvertible BondTotal repayments
2023— 22 — 22 
2024— 22 — 22 
2025— 22 — 22 
2026184 22 — 206 
2027— 196 — 196 
2028 and thereafter— — 50 50 
Total debt principal and exit fee payments184 284 50 518 
For further information on our bankruptcy proceedings refer to Note 4 - "Chapter 11 Proceedings".
v3.23.1
Other liabilities
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Other liabilities Other liabilities
As at December 31, 2022 (Successor) and December 31, 2021 (Predecessor), other liabilities included the following:  
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Accrued expenses124 78 
Uncertain tax positions85 83 
Unfavorable drilling contracts70 6 
Contract liabilities61 35 
Employee withheld taxes, social security and vacation payments47 43 
Taxes payable29 23 
Lease liabilities9 35 
Accrued interest expense4 — 
Other liabilities67 28 
Total Other Liabilities496 331 
Other liabilities are presented in our Consolidated Balance Sheet as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Other current liabilities306 219 
Other non-current liabilities190 112 
Total Other Liabilities496 331 
Unfavorable drilling contracts and management services contracts
The following table summarizes the movement in unfavorable drilling contracts and management services contracts for the year ended December 31, 2021 (Predecessor), 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, 2021 (Predecessor)66 (59)7 
Amortization— (1)(1)
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 
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 5 - ''Fresh Start Accounting''. The amortization is recognized in the Consolidated Statements of Operations as "Amortization of intangibles". The weighted average remaining amortization period for the unfavorable contracts is 36 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)2023202420252026 and thereafterTotal
Amortization of unfavorable contracts24 24 19 3 70 
v3.23.1
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
Current leasing arrangements
We have operating leases relating to our premises, for which we are the lessee. The most significant leases are for our offices in London, Liverpool, Stavanger, Singapore, Houston, Rio de Janeiro, and Luanda. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We 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. Additionally, we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture on July 1, 2022, at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Sale and leaseback arrangements with SFL Corporation
Seadrill previously entered into sale and leaseback arrangements with SFL Corporation Ltd for three rigs, including the West Taurus semi-submersible rig in 2008, West Hercules semi-submersible rig in 2008, and the West Linus jackup rig in 2014. These arrangements were made through wholly owned subsidiaries of SFL Corporation Ltd ("SFL"), which at the time was a related party.
The West Taurus lease was rejected as part of the Chapter 11 proceedings in March 2021, and the rig was delivered back to SFL in May 2021.
On August 27, 2021, an amendment to the original West Hercules SFL charter was approved by the Bankruptcy Court, which removed the buy-back obligation and resulted in a deemed disposal of the West Hercules, with the recognition of an operating lease. The West Hercules concluded its contract on October 31, 2022, and was returned to SFL in December 2022.
In February 2022, Seadrill entered into an interim transition charter with SFL for the West Linus jackup rig, allowing Seadrill to operate the rig until it was delivered back to SFL. An amended lease for the West Linus resulted in the recognition of a short-term operating lease, and the buy-back obligation was removed, resulting in a deemed disposal of the rig. The West Linus lease was terminated in September 2022, and the rig was delivered back to SFL on September 30, 2022.
For details of the accounting applied to these lease amendments, please refer to Note 4 - "Chapter 11". For details of Seadrill's liabilities previously recognized in respect of these leases, please refer to Note 27 - "Related party transactions".
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.
You may find further details of the adjustments recorded on fresh start accounting within Note 5 - "Fresh Start Accounting".
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as of December 31, 2022, were as follows:
(In $ millions)Year ended December 31, 2022
20234 
20242 
20252 
2026 and thereafter3 
Total11 
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 at December 31, 2022:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2022Year ended December 31, 2021
Total undiscounted cash flows11 37 
Less short term leases— — 
Less discount(2)(2)
Operating lease liability9 35 
Of which:
Current3 30 
Non-current6 5 
Total 9 35 
Other supplementary information
The following table gives supplementary information regarding our lease accounting at December 31, 2022:
SuccessorPredecessor
(In $ million)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating Lease Cost:
Operating lease cost36 4 42 19 
Short-term lease cost3 1 1 2 
Total lease cost39 5 43 21 
Other information:
Cash paid for lease liabilities- operating cash flows39 5 41 21 
ROU assets obtained in exchange for lease liabilities — 24 24 53 
Weighted-average remaining lease term in months52221914
Weighted-average discount rate10%9%10%24%
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of December 31, 2022, were as follows. For avoidance of doubt, these estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31, 2022
202324 
202414 
20254 
2026 and thereafter— 
Total42 
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 London, Liverpool, Stavanger, Singapore, Houston, Rio de Janeiro, and Luanda. In accordance with Topic 842, we record lease liabilities and associated right-of-use assets for our portfolio of operating leases.
We 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. Additionally, we commenced a lease for our benign environment floater, West Gemini, to our Sonadrill joint venture on July 1, 2022, at a nominal charter rate. As a lessor we recognize the associated revenue over the lease term in accordance with Topic 842.
Sale and leaseback arrangements with SFL Corporation
Seadrill previously entered into sale and leaseback arrangements with SFL Corporation Ltd for three rigs, including the West Taurus semi-submersible rig in 2008, West Hercules semi-submersible rig in 2008, and the West Linus jackup rig in 2014. These arrangements were made through wholly owned subsidiaries of SFL Corporation Ltd ("SFL"), which at the time was a related party.
The West Taurus lease was rejected as part of the Chapter 11 proceedings in March 2021, and the rig was delivered back to SFL in May 2021.
On August 27, 2021, an amendment to the original West Hercules SFL charter was approved by the Bankruptcy Court, which removed the buy-back obligation and resulted in a deemed disposal of the West Hercules, with the recognition of an operating lease. The West Hercules concluded its contract on October 31, 2022, and was returned to SFL in December 2022.
In February 2022, Seadrill entered into an interim transition charter with SFL for the West Linus jackup rig, allowing Seadrill to operate the rig until it was delivered back to SFL. An amended lease for the West Linus resulted in the recognition of a short-term operating lease, and the buy-back obligation was removed, resulting in a deemed disposal of the rig. The West Linus lease was terminated in September 2022, and the rig was delivered back to SFL on September 30, 2022.
For details of the accounting applied to these lease amendments, please refer to Note 4 - "Chapter 11". For details of Seadrill's liabilities previously recognized in respect of these leases, please refer to Note 27 - "Related party transactions".
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.
You may find further details of the adjustments recorded on fresh start accounting within Note 5 - "Fresh Start Accounting".
Undiscounted cashflows of operating leases
For operating leases where we are the lessee, our future undiscounted cash flows as of December 31, 2022, were as follows:
(In $ millions)Year ended December 31, 2022
20234 
20242 
20252 
2026 and thereafter3 
Total11 
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 at December 31, 2022:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2022Year ended December 31, 2021
Total undiscounted cash flows11 37 
Less short term leases— — 
Less discount(2)(2)
Operating lease liability9 35 
Of which:
Current3 30 
Non-current6 5 
Total 9 35 
Other supplementary information
The following table gives supplementary information regarding our lease accounting at December 31, 2022:
SuccessorPredecessor
(In $ million)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating Lease Cost:
Operating lease cost36 4 42 19 
Short-term lease cost3 1 1 2 
Total lease cost39 5 43 21 
Other information:
Cash paid for lease liabilities- operating cash flows39 5 41 21 
ROU assets obtained in exchange for lease liabilities — 24 24 53 
Weighted-average remaining lease term in months52221914
Weighted-average discount rate10%9%10%24%
Undiscounted cashflows under lessor arrangements
For operating leases where we are the lessor, our estimated future undiscounted cashflows as of December 31, 2022, were as follows. For avoidance of doubt, these estimates include future charter revenue from the rigs leased to Gulfdrill but do not include the future amortization of the liability recognized in respect of the Sonadrill arrangement.
(In $ millions)Year ended December 31, 2022
202324 
202414 
20254 
2026 and thereafter— 
Total42 
Refer to Note 9 – "Other revenue" for details of the revenues recorded in respect of the above leases.
v3.23.1
Common shares
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Common shares Common shares
Share capital as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor) was as follows:
 Issued and fully paid share capital
SharesPar value each$ millions
As at January 1, 2020 (Predecessor)100,234,973 $0.10 10 
2020 RSU share issuance149,462 $0.10 — 
As at January 1, 2021 and December 31, 2021 (Predecessor)100,384,435 $0.10 10 
Balance before reorganization and fresh start adjustments100,384,435 $0.10 10 
Cancellation of Predecessor equity(100,384,435)$0.10 (10)
Issuance of Successor common stock49,999,998 $0.01 — 
As at February 22, 2022 (Predecessor)49,999,998 $0.01 — 
As at February 23, 2022, and December 31, 2022 (Successor)49,999,998 $0.01 — 
Common share transactions for periods presented
On February 10, 2020 and June 17, 2020, a total of 149,462 common shares were issued to employees following a vesting of restricted stock units awarded under our Employee Incentive Plan.
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.
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
v3.23.1
Accumulated other comprehensive income/(loss)
 12 Months Ended
Dec. 31, 2022
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, 2021 (Predecessor)(2)(28)4 (26)
Other comprehensive income from continuing operations— — — — 
Other comprehensive income from discontinued operations— 9 2 11 
As at December 31, 2021 (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 
v3.23.1
Share based compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share based compensation Share based compensation
The share based compensation expense for our share options and Restricted Stock Unit ("RSU") plans in the Consolidated Statements of Operations are as follows:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Share based compensation expense— — — 8 
Total share based compensation expense— — — 8 
On August 6, 2022, the Board of Directors adopted a management incentive plan and reserved 2,910,053 common shares of the Company for issuance thereunder. In accordance with the Chapter 11 Plan, such number of shares 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 received 125,553 time based restricted share units ("RSUs") and 292,955 performance based restricted share units ("PSUs") under this Management Incentive Plan. These awards will be settled in cash unless shareholder approval of the Management Incentive Plan is obtained, in which case the awards may be settled in common shares at the election of the Joint Nomination and Remuneration Committee (the "Committee").
v3.23.1
Pension benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension benefits Pension benefits
Defined benefit plans
For onshore employees in Norway, who are participants in the defined benefit plans, the primary benefits are a retirement pension of approximately 66% of salary at retirement age of 67 years, together with a long-term disability pension. The retirement pension per employee is capped at an annual payment of 66% of the total of 12 times the Norwegian Social Security Base. Most employees in this group may choose to start a pre-retirement pension at 62 years of age.
Consolidated Balance Sheet position
Net defined benefit pension asset/(obligation) is as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Defined benefit obligation - Non-current liabilities(1)(5)
Deferred tax asset— 1 
Net defined benefit pension obligation(1)(4)
Annual pension cost
We record pension costs in the period during which the services are rendered by the employees.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Service cost— — — 1 
Interest cost on prior years’ benefit obligation— — — — 
Gross pension cost for the year— — — 1 
Expected return on plan assets— — — — 
Net pension cost for the year— — — 1 
Impact of settlement/curtailment of defined benefit plans— — 2 1 
Total net pension cost— — 2 2 
The funded status of the defined benefit plan
Funded defined benefit pension obligation is as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Projected defined benefit obligations(10)(16)
Plan assets at market value9 11 
Funded defined benefit pension obligation(1)(5)
Change in projected benefit obligations
Change in projected benefit obligation is as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Projected benefit obligations at beginning of period16 16 16 40 
Service cost— — — 1 
Benefits paid(1)— (1)(1)
Change in unrecognized actuarial gain(3)— 1 2 
Settlement (1)
— — — (25)
Foreign currency translations(2)— — (1)
Projected benefit obligations at end of period10 16 16 16 
(1)Two Norwegian defined benefit plans were settled and paid out in the year ended December 31, 2020 (Predecessor).
Change in pension plan assets
Change in pension plan assets is as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Fair value of plan assets at beginning of year11 11 16 39 
Contribution by employer1 — 1 6 
Benefits paid(1)— (1)(1)
Actuarial loss(1)— — — 
Settlement (1)
— — (1)(27)
Foreign currency translations(1)— — (1)
Other (2)
— — (4)— 
Fair value of plan assets at end of year9 11 11 16 
(1)Two Norwegian defined benefit plans were settled and paid out in 2020.
(2)In 2021, we received the contribution back for two Norwegian defined benefit plans that were terminated in 2020.
The accumulated benefit obligation for all defined benefit pension plans was $10 million and $15 million at December 31, 2022 (Successor) and December 31, 2021 (Predecessor), respectively.
Pension obligations are actuarially determined and are critically affected by the assumptions used, including the expected return on plan assets, discount rates, compensation increases and employee turnover rates. We periodically review the assumptions used and adjust them and the recorded liabilities as necessary.
The expected rate of return on plan assets and the discount rate applied to projected benefits are particularly important factors in calculating our pension expense and liabilities. We evaluate assumptions regarding the estimated rate of return on plan assets based on historical experience and future expectations on investment returns, utilizing the asset allocation classes held by the plan’s portfolios. The discount rate is based on the covered bond rate in Norway. Changes in these and other assumptions used in the actuarial computations could impact the projected benefit obligations, pension liabilities, pension expense and other comprehensive income.
Assumptions used in calculation of pension obligations 
SuccessorPredecessor
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Rate of compensation increase at the end of year2.50 %2.25 %2.25 %2.25 %
Discount rate at the end of year3.20 %1.50 %1.50 %1.70 %
Prescribed pension index factor1.60 %1.20 %1.20 %1.20 %
Expected return on plan assets for the year2.90 %2.90 %2.90 %2.60 %
Employee turnover4.00 %4.00 %4.00 %4.00 %
Expected increases in Social Security Base3.50 %2.25 %2.25 %2.00 %
The weighted-average asset allocation of funds related to our defined benefit plan at December 31, was as follows:
Pension benefit plan assets  
SuccessorPredecessor
December 31, 2022December 31, 2021
Equity securities10.2 %9.7 %
Debt securities73.6 %65.3 %
Real estate11.0 %13.6 %
Money market4.2 %10.6 %
Other1.0 %0.8 %
Total100.0 %100.0 %
The investment policies and strategies for the pension benefit plan funds do not use target allocations for the individual asset categories. The investment objectives are to maximize returns subject to specific risk management policies. The life insurance company diversifies the allocation of plan assets by investing in both domestic and international fixed income securities and domestic and international equity securities. These investments are readily marketable and can be sold to fund benefit payment obligations as they become payable.
Effective January 1, 2020 the company terminated two of the defined benefit plans and replaced it with a defined contribution plan. The termination/settlement cost relating to the defined benefit plans has been recognized within 'Selling, general and administrative expenses' within the Consolidated Statement of Operations.
 Cash flows - Contributions expected to be paid
 The table below shows our expected annual pension plans contributions under defined benefit plans for the years ending December 31, 2023-2032. The expected payments are based on the assumptions used to measure our obligations at December 31, 2022 and include estimated future employee services. 
(In $ millions)December 31, 2022
20231 
20241 
20251 
20261 
2027-20322 
Total payments expected during the next 10 years6 
Defined contribution and other plans
We made contributions to personal defined contribution pension and other plans totaling $13 million for the year ended December 31, 2022 (Successor), $18 million for the year ended December 31, 2021, and $18 million for the year ended December 31, 2020 (Predecessor). These were charged as operational expenses as they became payable.
v3.23.1
Related party transactions
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
As of December 31, 2022, our major related parties were affiliated companies over which we held significant influence. They included the Sonadrill and Gulfdrill joint ventures and Paratus Energy Services Ltd. ("PES") (formerly NSNCo), in which we held a 35% interest. PES, a consolidated subsidiary of Seadrill until January 2022, owns 100% of SeaMex, which is also a related party, and a 50% interest in Seabras Sapura, which was also a related party for periods before January 2022. Aquadrill (formerly Seadrill Partners) was also 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 main related parties also included companies who were either controlled by or whose operating policies were significantly influenced by Hemen, who was a major shareholder of the Predecessor Company. On emergence, Hemen's equity interest in Seadrill substantially decreased, and as a result, companies who were either controlled by or whose policies were significantly influenced by Hemen are no longer related parties. These include SFL, Northern Ocean, Northern Drilling, Archer, Frontline, and Seatankers.
Seadrill sold its remaining interest in PES on February 24, 2023. As a result, PES and SeaMex are no longer related parties. In connection with the sale, on March 14, 2023, Seadrill also 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 will terminate effective July 12, 2023; and the SeaMex MSA will terminate effective September 10, 2023. We do not believe these terminations will have a material effect on the financial condition of the Company.
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)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Management fee revenues (a)
174 12 98 135 
Reimbursable revenues (b)
12 3 65 148 
Leasing revenues (c)
24 4 26 19 
Other (d)
6 — — 3 
Total related party operating revenues 216 19 189 305 
(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. 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)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
West Bollsta lease (e)
— — (57)(10)
West Hercules lease (f)
— (3)(10)— 
Other related party operating expenses (g)
— — (3)(2)
Total related party operating expenses— (3)(70)(12)
(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. Refer to Note 22 - "Leases" for details.
(f) Seadrill incurred operating lease expense related to its lease of the West Hercules following a lease modification in August 2021 which resulted in the lease being reclassified as an operating lease rather than a finance lease. Refer to Note 22 - "Leases" for details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
(g) We received services from certain other related parties. These included management and administrative services from Frontline, warehouse rental from Seabras Sapura and other services from Archer and Seatankers. Following emergence from Chapter 11 proceedings, these companies are no longer related parties.
Related party financial items
In 2021, Seadrill recognized $1 million of interest income on a $8 million "Minimum Liquidity Shortfall" loan issued to SeaMex which was subsequently repaid. In both 2020 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.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Related party loans and interest (h)
— 9 
Trading balances (i)
28 20 
Allowance for expected credit loss (j)
(1)(1)
Total related party receivables27 28 
Of which:
Amounts due from related parties - current27 28 
Amounts due from related parties - non-current— — 
Total amounts due from related parties 27 28 
(h) Seadrill provided a "Minimum Liquidity Shortfall" loan to SeaMex, which earned interest at 6.5% plus 3-month US LIBOR. The loan was fully settled in March 2022.
(i) Trading balances are comprised of receivables from Gulfdrill for lease income, which relates to charter fees for the three jackup rigs Seadrill provided to the joint venture and amounts due from SeaMex and Sonadrill for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(j) 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.
The below table provides an analysis of the receivable balance:
SuccessorPredecessor
 (In $ millions)December 31, 2022December 31, 2021
Gulfdrill9 13 
Sonadrill 17 4 
PES/SeaMex2 12 
Gross amount receivable28 29 
Less: CECL allowance (1)(1)
Receivable net of CECL allowance 27 28 
Related party payable balances
The below table provides an analysis of related party payable balances for periods presented in this report.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Liabilities from Seadrill to SFL (k)
— 503 
Total related party liabilities— 503 
Of which:
Amounts due to related parties - current— — 
Liabilities subject to compromise — 503 
(k) On filing for Chapter 11, our prepetition related party payables were reclassified to Liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheets at December 31, 2021 (Predecessor). Upon emergence from Chapter 11 proceedings in February 2022, all LSTC balances were extinguished with a gain on settlement recognized in "Reorganization items, net". For further information refer to Note 5 - "Fresh Start Accounting". Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
The following table provides a summary of the lease liabilities to SFL as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor).
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
West Taurus lease liability
— 345 
West Linus lease liability
— 158 
Total lease liabilities to SFL— 503 
The lease on the West Taurus was rejected through the bankruptcy court which resulted in a remeasurement of the liability to its expected claim value, which was extinguished on emergence from Chapter 11. The West Linus leases was modified during February 2022 with the associated liabilities being derecognized at the point of lease amendment.
Other related party transactions
We have made guarantees over performance to end customers on behalf of Sonadrill. We have not recognized a liability for any of these guarantees as we do not consider it to be probable that the guarantees would be called.
v3.23.1
Financial instruments and risk management
 12 Months Ended
Dec. 31, 2022
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 Board. This may include the use of derivative instruments.
Credit risk
We have financial assets, including cash and cash equivalents, related party receivables, other receivables and certain amounts receivable on derivative instruments. These assets expose us to credit risk arising from possible default by the counterparty. Most of the counterparties are creditworthy financial institutions or large oil and gas companies. 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. As of December 31, 2022 (Successor), the credit exposure of derivative financial instruments is limited to our interest rate cap.
Credit risk is also considered as part of our expected credit loss provision. For details on how we estimate expected credit losses refer to Note 6 - "Current expected credit losses".
Concentration of risk
There is also a concentration of credit risk with respect to cash and cash equivalents to the extent that most of the amounts are carried with Citibank, DNB, Credit Agricole and BTG Pactual. 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 27 – "Related party transactions".
Foreign exchange risk
It is customary in the oil and gas industry that a majority of our revenues and expenses are denominated in U.S. dollars, which is the functional currency of most of our subsidiaries and equity method investees. However, a portion of the revenues and expenses of certain of our subsidiaries and equity method investees are denominated in other currencies. We are therefore exposed to foreign exchange gains and losses that may arise on the revaluation or settlement of monetary balances denominated in foreign currencies.
Our foreign exchange exposures primarily relate to cash and working capital balances denominated in foreign currencies. We do not expect these exposures to cause a significant amount of fluctuation in net income and do not currently hedge them. The effect of fluctuations in currency exchange rates arising from our international operations has not had a material impact on our overall operating results.
Interest rate risk
Our exposure to interest rate risk relates mainly to our floating rate debt and balances of surplus funds placed with financial institutions. We manage our floating rate debt risk through the use of a derivative agreement. On May 11, 2018, we purchased an interest rate cap for $68 million to mitigate exposure to future increases of LIBOR and, since then, have closed out 89% of this cap. Following Chapter 11 restructuring and prepayments of our external debt facilities, the notional amount now covered by the cap is $496 million. The interest rate cap is not designated as a hedge and therefore we do not apply hedge accounting. The capped rate against the 3-month US LIBOR is 2.8770% and covers the period from June 15, 2018 to June 15, 2023. The 3-month LIBOR rate as at December 31, 2022 (Successor) was 4.7673%.
The new term loan and second lien debt facilities entered on emergence from Chapter 11 proceedings are referenced to the SOFR, while the Convertible Bond is referenced to 3-month US LIBOR and has fallback provisions for reference rate benchmark changes.
v3.23.1
Fair values of financial instruments
 12 Months Ended
Dec. 31, 2022
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 at December 31, 2022 and December 31, 2021 are as follows:
SuccessorPredecessor
December 31, 2022December 31, 2021
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
(As adjusted)
Assets
Related party loans receivable (Level 2)
— — 9 9 
Liabilities
Liability subject to compromise- Secured credit facilities (Level 3)
— — 1,966 5,544 
Liability subject to compromise- Related Party Loan Payable (Level 3)
— — 176 503 
First Lien Senior Secured (Level 3)
195 184 — — 
Second Lien Senior Secured (Level 3)
284 284 — — 
Unsecured Convertible Bond - debt component (Level 3)
46 50 — — 
Financial instruments categorized as level 2
The fair value of related party receivable balances were assumed to be equal to their carrying value, after adjusting for expected credit losses. The loans are categorized as level 2 on the fair value hierarchy. Other trading balances with related parties are not shown in the table above and are covered in Note 27 - "Related party transactions".
Financial instruments categorized as level 3
Upon emergence from Chapter 11 proceedings, our secured credit facilities were settled and replaced with the first and second lien senior notes and an unsecured convertible bond. The fair values attributed to the first and second lien debt were derived by discounting the future cash flows associated with each facility.
The fair value attributed to the unsecured convertible bond is bifurcated into two elements: the straight debt component is derived through a discounted cash flow approach, similarly to the one applied for the first and second lien debt, and the conversion option, which is derived through an option pricing model which forecasts equity volatility and compares the potential conversion redemption against historical and implied equity movements in comparable companies in our industry. The conversion option was recorded in equity at the point the bond was issued and, therefore, has not been included in the table above.
The fair values of the secured credit facilities as at December 31, 2021 were determined by reference to the secured credit facilities holder allocation of the Seadrill fair value post emergence. The fair value was derived using a discounted cash flow model of future free cash flows from each rig, using a weighted average cost of capital of 17.0%.
Upon emergence from Chapter 11 proceedings, our related party loans payable were extinguished and a gain recognized in "Reorganization items, net". The fair value of the related party loans payable as at December 31, 2021, for the West Taurus was derived using the court approved maximum cash settlement amount of $0.25 million. For the West Linus the fair value was derived using a discounted cash flow model of future free cash flows based on the contractual cash flows under the bareboat charter agreement together with the LIBOR linked interest payments, as well as assumed cash outflows under the mandatory repurchase obligation at the end of the lease term. These cash flows were discounted using a weighted average cost of capital.
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 shown on 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, 2022 (Successor) and December 31, 2021 (Predecessor) are as follows: 
SuccessorPredecessor
As at December 31, 2022As at December 31, 2021
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
480 480 293 293 
Restricted cash (Level 1)
118 118 223 223 
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 as at December 31, 2022 is 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.
v3.23.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Legal Proceedings
From time to time we are a party, as plaintiff or defendant, to lawsuits in various jurisdictions for demurrage, damages, off-hire and other claims and commercial disputes arising from the construction or operation of our drilling units, in the ordinary course of business or in connection with our acquisition or disposal activities. We believe that the resolution of such claims will not have a material impact, individually or in the aggregate, on our operations or financial condition. Our best estimate of the outcome of the various disputes has been reflected in our Consolidated Financial Statements as of December 31, 2022 (Successor).
SFL Hercules Ltd
On March 5, 2023, Seadrill was served with a claim from SFL Hercules Ltd., filed in the Oslo District Court in Norway, relating to our redelivery of the rig West Hercules to SFL in December 2022. In its petition, SFL claims that the rig was not redelivered in the condition required under our contract with SFL and seeks damages in the amount of approximately NOK300 million (approximately $28 million). We are currently assessing the claim and intend to vigorously defend our position. At this time, we are unable to determine an amount or range of possible loss, if any.
Sonadrill fees claim
In March 2023, Seadrill was served with a claim from an individual (the “Claimant”) filed in the High Court of Justice, Business and Property Courts of England and Wales, King’s Bench Division, Commercial Court. The Claimant alleges breach of contract and unjust enrichment damages of approximately $72 million related to an alleged failure by the Company to pay the Claimant a fee for services in arranging the Sonadrill joint venture. We do not believe that the Claimant is entitled to the fee claimed and intend to vigorously defend our position. At this time, we are unable to determine an amount or range of possible loss, if any.
Oro Negro
The CEO of Perforadora Oro Negro, S. DE R.L. DE C.V ("Oro Negro"), a Mexican drilling rig contractor, filed a complaint personally and in his capacity as foreign representative of Oro Negro on June 6, 2019 in the United States Bankruptcy Court, Southern District of New York, within Oro Negro’s Chapter 15 proceedings ancillary to its Mexican insolvency process. The complaint names Seadrill and its joint venture partner as co-defendants along with other defendants including Oro Negro bondholders. With respect to Seadrill, the complaint asserts claims relating to alleged tortious interference but does not seek to quantify damages. On August 25, 2019, Seadrill submitted a motion to dismiss the complaint on technical legal grounds. Oro Negro responded to this motion on October 25, 2019. On August 6, 2021 the United States Bankruptcy Court was notified that the auction of Oro Negro’s assets was approved by the Mexican Concurso court. The complaint proceedings has been stayed since March 2020, and the stay was due to continue until the first to occur of April 6, 2023, or a purchase is agreed. On April 6, 2023, Oro Negro filed a stipulation and order withdrawing the complaint in full, without prejudice. As withdrawal of the complaint is without prejudice, Oro Negro retains the ability to re-file a future claim against some or all of the defendants. Seadrill intends to continue to vigorously defend against the claims Oro Negro asserts.
Nigerian Cabotage Act litigation
Seadrill Mobile Units Nigeria Ltd ("SMUNL") commenced proceedings in May 2016 against the Honourable Minister for Transportation, the Attorney General of the Federation and the Nigerian Maritime Administration and Safety Agency ("NMASA") with respect to interpretation of the Coastal and Inland Shipping (Cabotage) Act 2003 (the "Cabotage Act"). SMUNL is an Aquadrill entity which is the litigating party on behalf of both Aquadrill and Seadrill as the litigation relates to the West Capella (an Aquadrill rig) and the West Saturn and West Jupiter (Seadrill rigs). On June 14, 2019, the Federal High Court of Nigeria delivered a judgement finding that: (1) Drilling operations fall within the definition of "Coastal Trade" or "Cabotage" under the Act and (2) Drilling Rigs fall within the definition of "Vessels" under the Cabotage Act. On the basis of this decision, SMUNL and Seadrill were required to deduct 2% of their contract value and remit the same to NMASA and SMUNL was required to register for Cabotage with NMASA and pay all fees and tariffs as may be published in the guidelines that may be
issued by the Minister of Transportation in accordance with the Cabotage Act. SMUNL filed an urgent notice of appeal to the Court of Appeal in July 2019 together with a request for an injunction restraining the authorities from any enforcement of the Cabotage Act pending appeal. Due to the volume of cases currently being handled by the Court of Appeal sitting in Lagos, we anticipate a decision within three to five years.
Although we intend to strongly pursue this appeal, we cannot predict the outcome of this case. We do not believe that it is probable that the ultimate liability, if any, resulting from this litigation will have a material effect on our financial position and results of operations and cash flows.
Lava Jato
The Brazilian markets have experienced heightened volatility in recent years due to the uncertainties derived from the ongoing investigations being conducted by the Office of the Brazilian Federal Prosecutor, the Brazilian Federal Police, the Brazilian Securities Commission (Comissão de Valores Mobiliários), the Securities and Exchange Commission, the U.S. Department of Justice, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) and other Brazilian and foreign public authorities, including the largest such investigation known as Lava Jato, and the impact that such investigations have on the Brazilian economy and political environment. Numerous elected officials, public servants and executives and other personnel of large and state-owned companies have been subject to investigation, arrest, criminal charges and other proceedings in connection with allegations of political corruption, including the acceptance of bribes by means of kickbacks on contracts granted by the government to several infrastructure, oil and gas and construction companies, among others. The profits of these kickbacks allegedly financed the political campaigns of political parties that were unaccounted for or not publicly disclosed and served to personally enrich the recipients of the bribery scheme.
On September 23, 2020, Seadrill's subsidiary Seadrill Serviços de Petroleo, Ltda was served with a search and seizure warrant from the Federal Police in Rio de Janeiro, Brazil as part of the phase of Operation Lava Jato relating to individuals formally associated with Seadrill Serviços. At this time, Seadrill understands that this investigation has been closed.
Individuals who have had commercial arrangements with Seadrill have been identified in the Lava Jato investigations and the investigations by the Brazilian authorities are ongoing. The outcome of certain of these investigations is uncertain, but they have already had an adverse impact on the business, image and reputation of the implicated companies, and on the general market perception of the Brazilian economy. We cannot predict whether such allegations will lead to further political and economic instability or whether new allegations against government officials or executives will arise in the future. We also cannot predict the outcome of any such allegations on the Brazilian economy, and the Lava Jato investigation including its recent phases, could adversely affect our business and operations.
Any other material disputes or litigation
During the course of the preceding 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, 2022, 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, 2021 (Predecessor): $400 million), 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, 2021 (Predecessor): $150 million).
v3.23.1
Business combination
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Business combination Business combination
During 2021, as part of the restructuring of Paratus Energy Services Ltd. ("PES"), certain PES lenders facilitated a restructuring of the bank debt of the SeaMex joint venture, which enabled PES to acquire a 100% equity interest in the SeaMex joint venture by way of a credit bid. The acquisition was executed through a share purchase agreement ("SPA") that was entered into on September 2, 2021 and closed on November 2, 2021. Under the SPA, the assets of SeaMex were sold out of provisional liquidation to a newly incorporated wholly owned subsidiary of PES, in exchange for the extinguishment of $393 million of debt instruments owed by SeaMex to PES. Before the sale, PES had recorded allowances for expected credit losses against these debt receivables totaling $65 million.
Following the closing of the SPA on November 2, 2021, PES obtained the remaining 50% equity interest in SeaMex, resulting in the consolidation of SeaMex into PES in a business combination. As Seadrill held a 100% interest in PES until the conclusion of PES's wider restructuring in January 2022, Seadrill consolidated the results of SeaMex, as a discontinued operation, between November 2021 and January 2022. The acquisition was accounted for by both PES and Seadrill as a business combination under topic 805 - Business Combinations. Prior to the transaction Seadrill accounted for the interest in SeaMex, held through PES, as an equity method investment.
We used a convenience date of November 1, 2021 to account for this transaction. For more information on Seadrill's comprehensive restructuring, including the restructuring of PES and the acquisition of SeaMex, please refer to Note 4 - "Chapter 11".
The following is a summary of SeaMex's identifiable assets acquired and liabilities assumed as at acquisition date:
(In $ millions)As at acquisition
Carrying amounts of major classes of assets
Cash and cash equivalents41 
Restricted cash21 
Accounts receivable, net316 
Intangible drilling contracts172 
Drilling units216 
Other assets17 
Total assets783 
Carrying amounts of major classes of liabilities
Amounts due to related parties133 
Long-term debt234 
Other liabilities88 
Total liabilities455 
Net asset acquired328 
Prior to November 2021, 50% of the net income or loss from SeaMex was recorded by Seadrill through the profit and loss line item "share in results from associated companies". From November 2021 until January 20, 2022, Seadrill fully consolidated SeaMex's results. All amounts have been reported through discontinued operations. The following is a summary of SeaMex's results since the acquisition date included in the discontinued operations for periods covered by the report.
(In $ millions)Period from January 1, 2022 through January 20, 2022Period from November 2, 2021 through December 31, 2021
Results from business combination
Operating revenues
Contract revenues1236
Total operating revenues1236
Operating expenses
Vessel and rig operating expenses(7)(25)
Selling, general and administrative expenses(1)(2)
Total operating expenses(8)(27)
Operating profit49
Financial and non-operating items
Interest expense(1)(4)
Others(1)(1)
Total financial items(2)(5)
Income before tax24
Income tax benefit(1)2
Income after tax16
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Assets and liabilities held for sale/discontinued operations Assets and Liabilities Held for Sale/ Discontinued Operations
Disposal of interest in Paratus Energy Services Ltd.
Paratus Energy Services Ltd. ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 4 - "Chapter 11".
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 have reclassified Paratus Energy Services as a discontinued operation and its results have been reported separately from Seadrill’s continuing operations for both the current and comparative periods. In addition, the previously consolidated assets and liabilities of PES were reclassified as held for sale within Seadrill's consolidated balance sheet from the fourth quarter of 2021. We ceased all depreciation and amortization of held for sale non-current assets at the point they qualified as held for sale.
Related to the same restructuring, PES made a further investment in SeaMex during the fourth quarter of 2021. SeaMex, now a fully owned subsidiary of PES, is a drilling contractor that owns and operates five jackup drilling units located in Mexico under contract with Pemex.
SeaMex was previously a 50% owned joint venture until November, 2 2021, when PES (at that time, NSNCo) acquired the remaining 50% interest in SeaMex through a restructuring arrangement. As Seadrill held a 100% interest in PES at that time, it consolidated the results of SeaMex, as a discontinued operation, between November 2021 and January 2022. Seadrill accounted for the acquisition as a business combination under topic 805 - Business Combinations. For further details on the business combination accounting please refer to note Note 31 - Business combination.
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. 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 will terminate effective July 12, 2023; and the SeaMex MSA will terminate effective September 10, 2023. We do not believe these terminations will have a material effect on the financial condition of the Company.
For further information on Seadrill's comprehensive restructuring, including the sale of the 65% interest in Paratus Energy Services, please refer to Note 4 - "Chapter 11".
Sale of jackup units in the Kingdom of Saudi Arabia
On September 1, 2022, Seadrill entered into a share purchase agreement (the “Jackup SPA”) with subsidiaries of ADES Arabia Holding Ltd (together, “ADES”) for the sale of the entities that own and operate seven jackup units (the “Jackup Sale”) in the Kingdom of Saudi Arabia (the "KSA Business"). The Jackup Sale closed on October 18, 2022, with ADES now owning the rigs AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida, and West Leda, as well as the drilling contracts related to the rigs. ADES also now employs the crews operating the rigs in Saudi Arabia.
As of December 31, 2022, Seadrill had received $670 million in consideration from ADES and incurred deal costs of $11 million, resulting in net proceeds of $659 million. We have reported an accounting gain on sale through discontinued operations of $276 million. The final sale consideration and accounting gain remain subject to further adjustment for working capital finalization and the resolution of certain indemnities and warranties provided to ADES through the sale.
The gain on sale, which is reported within discontinued operations in our income statement, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Gain on SaleReceived/(paid) to date
Initial Purchase Price 628 628 
Adjustment for working capital, cash, and reimbursement of reactivation costs53 50 
Less: Deal costs(11)(11)
Less: Fair value of indemnities and warranties(36)(8)
Net sales price634 659 
Less: Book value of KSA Business(358)— 
Total276 659 
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 have 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 for both the current and comparative periods. In addition, the assets and liabilities of the KSA Business were reclassified as held for sale as of September 1, 2022. We ceased all depreciation and amortization of held for sale non-current assets at the point they qualified as held for sale.
Analysis of line item balances by discontinued operation
The table below analyses the carrying amounts of assets and liabilities classified as held for sale between our two discontinued operations.
SuccessorPredecessor
(In $ millions)As at December 31, 2022As at December 31, 2021
Assets held for saleTotalPESKSA BusinessTotal
Current— 1,103 42 1,145 
Non-current— — 347 347 
Total assets held for sale— 1,103 389 1,492 
Liabilities associated with assets held for sale
Current— 948 35 983 
Liabilities subject to compromise— — 118 118 
Non-current— — 2 2 
Total liabilities associated with assets held for sale— 948 155 1,103 
The table below provides a further analysis of net income (loss) from discontinued operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Net income of Paratus Energy Services—(4)5(215)
Net income of KSA Business8(29)(20)(18)
Gain on disposal of KSA Business276———
Exit cost associated with disposal of KSA Business(10)———
Total profit/(loss) from discontinued operations274(33)(15)(233)
Basic EPS: discontinued operations ($)5.48(0.33)(0.15)(2.32)
Diluted EPS: discontinued operations ($)5.21(0.33)(0.15)(2.32)
The table below analyses the cash flows from discontinued operations between our two discontinued operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Paratus Energy Services—(69)(18)(24)
KSA Business5(20)132
Net cash provided by/(used in) operating activities5(89)(5)(22)
Paratus Energy Services——2336
KSA Business(40)———
Net cash (used in)/provided by investing activities(40)—2336
Paratus Energy Services————
KSA Business1620—(96)
Net cash provided by/(used in) financing activities1620—(96)
Summary balance sheet and profit and loss information of KSA Business
The table below summarizes the balance sheet of the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The assets and liabilities of the KSA Business during these periods are classified as held for sale on Seadrill's consolidated balance sheet.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2022Year ended December 31, 2021
Carrying amounts of major classes of assets
Cash and cash equivalents— 19 
Accounts receivable— 12 
Drilling units— 346 
Other assets— 12 
Total assets of KSA Business classified as held for sale— 389 
Carrying amounts of liabilities subject to compromise
Liabilities subject to compromise— 118
Carrying amounts of major classes of liabilities
Trade accounts payable— 6
Uncertain Tax Positions — 2
Other liabilities— 29
Total liabilities of KSA Business classified as held for sale— 37
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, except per share data)Period from February 23, 2022 through December 31, 2022
Period from January 1, 2022 through February 22, 2022
Year ended December 31, 2021Year ended December 31, 2020
Operating revenues
Contract revenues86 18 101 98 
Total operating revenues86 18 101 98 
Operating expenses
Vessel and rig operating expenses(45)(10)(64)(65)
Depreciation and amortization(22)(4)(28)(28)
Selling, general and administrative expenses(8)(1)(10)(6)
Total operating expenses(75)(15)(102)(99)
Operating profit11 3 (1)(1)
Financial and other non-operating items
Interest income— — — 1 
Interest expense— — — (11)
Reorganization items, net — (32)(14)— 
Other financial items(1)— — (2)
Net profit/(loss) before tax10 (29)(15)(13)
Income tax expense(2)— (5)(5)
Net profit/(loss) after tax8 (29)(20)(18)
Summary balance sheet and profit and loss information of Paratus Energy Services
The table below summarizes the balance sheet of PES for periods when it was a fully consolidated subsidiary of Seadrill. The assets and liabilities of PES during these periods are classified as held for sale on Seadrill's consolidated balance sheet.
SuccessorPredecessor
(In $ millions)As at December 31, 2022As at December 31, 2021
Carrying amounts of major classes of assets
Cash and cash equivalents— 48
Restricted cash— 21
Accounts receivable— 318
Intangible drilling contracts— 165
Drilling units— 215
Investment in associated companies— 239
Amount due from related parties— 69
Deferred tax assets— 6
Other assets— 22
Total assets of Paratus Energy Services Ltd classified as held for sale— 1,103
Carrying amounts of major classes of liabilities
Trade accounts payable— 7
Amounts due to related parties— 12
Long-term debt— 814
Uncertain tax positions— 25
Other liabilities— 90
Total liabilities of Paratus Energy Services Ltd classified as held for sale— 948
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, except per share data)Period from February 23, 2022 through December 31, 2022
Period from January 1, 2022 through February 22, 2022
Year ended December 31, 2021Year ended December 31, 2020
Operating revenues
Contract revenues— 12 36— 
Total operating revenues— 12 36— 
Operating expenses
Operating expenses— (8)(27)— 
Total operating expenses— (8)(27)— 
Operating profit— 4 9— 
Financial and other non-operating items
Interest income— — 1826
Interest expense— (4)(77)(60)
Share in results from associated companies (net of tax)— (1)14 (77)
Loss on impairment of investments— — — (47)
Loss impairment of convertible bond from related party— — — (29)
Other financial items— (2)39(27)
Total financial items— (7)(6)(214)
Net profit/(loss) before tax— (3)3(214)
Income tax benefit/(expense)— (1)2(1)
Net profit/(loss) after tax— (4)5 (215)
v3.23.1
Subsequent Events
 12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent events Subsequent events
PES disposal
On September 30, 2022, Seadrill entered into share purchase agreements under which it would sell its entire 35% shareholding in Paratus Energy Services Ltd. (formerly Seadrill New Finance Limited) (“PES”) and certain other interests (the “PES Sale”). PES is the entity through which investments in the SeaMex Group, Seabras Sapura, and Archer Ltd are held. The sale closed on February 24, 2023.
Termination of MSAs
In connection with the disposal of our entire 35% shareholding in Paratus Energy Services Ltd, 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 will terminate effective July 12, 2023; and the SeaMex MSA will terminate effective September 10, 2023. We do not believe these terminations will have a material effect on the financial condition of the Company.
SFL Hercules Ltd
On March 5, 2023, Seadrill was served with a claim from SFL Hercules Ltd., filed in the Oslo District Court in Norway, relating to our redelivery of the rig West Hercules to SFL in December 2022. In its petition, SFL claims that the rig was not redelivered in the condition required under our contract with SFL and seeks damages in the amount of approximately NOK300 million (approximately $28 million). We are currently assessing the claim and intend to vigorously defend our position. At this time, we are unable to determine an amount or range of possible loss, if any.
Sonadrill fees claim
In March 2023, Seadrill was served with a claim from an individual (the “Claimant”) filed in the High Court of Justice, Business and Property Courts of England and Wales, King’s Bench Division, Commercial Court. The Claimant alleges breach of contract and unjust enrichment damages of approximately $72 million related to an alleged failure by the Company to pay the Claimant a fee for services in arranging the Sonadrill joint venture. We do not believe that the Claimant is entitled to the fee claimed and intend to vigorously defend our position. At this time, we are unable to determine an amount or range of possible loss, if any.
Aquadrill acquisition
On December 22, 2022, Seadrill entered into the Agreement and Plan of Merger (the “Merger Agreement”) by and among Seadrill, Aquadrill (formerly Seadrill Partners) and Seadrill Merger Sub, LLC, a Marshall Islands limited liability company (“Merger Sub”), pursuant to which Merger Sub merged with and into Aquadrill, with Aquadrill surviving the merger as a wholly owned subsidiary of Seadrill (the “Merger”). On April 3, 2023 (the “Closing Date”), Seadrill completed the Merger. In connection with the Merger, Seadrill issued approximately 29.9 million Shares to Aquadrill unitholders and equity award holders, as well as the Chief Executive Officer of Aquadrill, representing approximately 37% of the post-Merger issued and outstanding Shares.

As a result of the Merger, Seadrill acquired Aquadrill’s four drillships, one semi-submersible and three tender-assist units. As of the date of this report, Seadrill (i) owns 12 floaters (including seven 7th generation drillships, three 6th generation drillships, and two benign environment semi-submersible units), three harsh environment rigs, four benign jackups and three tender-assisted rigs and (ii) manages seven additional rigs under management service arrangements with Sonadrill and SeaMex. See “Termination of MSAs” above.

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.

The Merger will be accounted for as a business combination under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, with Seadrill anticipated to be the accounting acquirer. Under this method, the purchase consideration in the Merger will reflect the Shares issued in connection with the Merger, as described above. The issuance of these Shares was recorded at a fair value of $1.2 billion on the Closing Date, measured with reference to Seadrill’s closing Share price of $41.6 on that day. Concurrently, the assets acquired, and liabilities assumed, were recorded on Seadrill’s consolidated balance sheet at their respective fair values. Any difference between the fair value of consideration issued and the fair value of assets acquired, and liabilities assumed, will be recorded as goodwill or a bargain purchase gain. Following the Closing Date, Seadrill will reflect the results, cashflows, and financial position of Aquadrill through its financial statements.

Due to the proximity of the Closing Date to the issuance of this report, management has not yet completed a fair value assessment of the identified assets acquired, and liabilities assumed, of Aquadrill at the Closing Date. Accordingly, no estimate is currently made for any goodwill or bargain purchase gain that may be recognized in connection with the Merger.

Prepayments under second lien facility
On February 10, 2023, Seadrill made a voluntary prepayment of $118 million under its secured second lien debt facility. The payment was comprised of $110 million in debt principal, $6 million in exit fee, and $2 million in accrued interest.
On March 15, 2023, Seadrill made a further voluntary prepayment of $44 million under its secured second lien debt facility. The payment was comprised of $40 million in debt principal, $2 million in exit fee, and $2 million in accrued interest.
As such, in total, post period Seadrill made prepayments under its second lien debt facility of $162 million, including $150 million in debt principal.
v3.23.1
Accounting policies (Policies)
 12 Months Ended
Dec. 31, 2022
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 rounded to the nearest million, unless stated otherwise. They include the financial statements of Seadrill Limited, its consolidated subsidiaries, and any variable interest entity ("VIE") where we are the primary beneficiary.
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 will have a major effect on its operations and financial results of the current year and going forward and therefore both were reclassified as discontinued operations and their results reported separately for current and comparative periods. Their assets and liabilities were reclassified as held for sale in all periods presented, and comparative period results, assets, and liabilities have been labelled as "As adjusted."
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 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.
Emergence from Chapter 11 proceedings
On February 22, 2022 (Predecessor), Seadrill Limited and certain of its subsidiaries which filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court ("Debtors"), completed its comprehensive restructuring and emerged from Chapter 11 proceedings. Please refer to Note 4 - "Chapter 11" for further details.
In our previous annual report covering the period to December 31, 2021, we disclosed a substantial doubt as to our ability to continue as a going concern as a result of the fact that we were in Chapter 11 proceedings and there was a degree of inherent risk associated with being in bankruptcy and whether the Plan (as defined herein) would be confirmed. Having now emerged from Chapter 11 proceedings, with a significantly improved capital structure, we believe that cash on hand, contract, and other revenues will generate sufficient cash flows to fund our anticipated debt service and working capital requirements for the next twelve months. Therefore, there is no longer a substantial doubt over our ability to continue as a going concern for at least the next twelve months following the date of issuance of the financial statements.
Fresh Start Reporting
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.
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 and/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. 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.
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 them 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 yard 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. Currently, 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. Seadrill and our subsidiaries and affiliates have received written assurance from the Minister of Finance in Bermuda that we will be exempt from taxation until March 2035. 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 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.
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.
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.
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 at 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 that maintain their accounts in 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 in the Consolidated Statements of Operations.
Loss per share Earnings/(loss) per shareBasic 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 Cash and cash equivalentsCash 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 whether the balances have short-term maturities and whether the counterparty has an investment grade credit rating, limiting any credit exposure.
Receivables
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
In 2020 we adopted the current expected credit loss ("CECL") model which replaced the “incurred loss” model required under the guidance for FY 2019. The 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 partiesParties 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 27 –" Related party transactions" for details of balances and material transactions with related parties.
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, goodwill or a gain on a bargain purchase is recognized at the acquisition date and is measured as a residual amount. The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed shall be 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, Seadrill would recognize a bargain purchase gain in the income statement 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 32 - "Assets and Liabilities Held for Sale/ Discontinued Operations" for details of disposals during the period.
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". 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 as "loss on marketable securities". 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
Assets held for sale
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 operation under the three criteria set out in ASC 205: a) 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 ASC 205 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 32 – "Assets and Liabilities Held for Sale/ Discontinued Operations".
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. The estimated residual value is taken to be offset by any decommissioning costs that may be incurred. 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 3 and 5 years depending on the type of asset. Refer to Note 19 – "Equipment".
Rig activation cost
Rig reactivation project costs
Most reactivation costs are capitalized. The incremental cost of equipment depreservation activities and one-time major equipment overhaul or replacement of systems and equipment, certain directly identifiable personnel costs and costs to move rigs from stacking locations to the shipyards are capitalized and depreciated over the remaining lives of the rigs. General and administrative and overhead costs related to reactivation projects are accounted for as operating expenses.
Rig upgrade costs that increase the marketability of the rig beyond the current contract are depreciated over the remaining lives of the rigs. Costs incurred to install equipment or modify to current rig specifications that will not increase the marketability of the rig beyond the current contract, and rig mobilization costs, are deferred and amortized over the initial contract period.
The cost of reactivation project related long-term maintenance (LTM) activities such as major classification surveys and other major certifications are capitalized and depreciated over a period of between 2 and 5 years (depending on the period covered by the re-certification).
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, nor expect to 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 lessee. 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).
Absent an impairment of the ROU asset, the single lease cost is calculated so that the remaining cost of the lease is allocated over the remaining lease term on straight-line basis. Seadrill assesses a ROU asset 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 was included in determining the appropriate lease term to apply. Options to renew our lease terms are included in determining the right-of-use asset and lease liability when it is reasonably certain that we will exercise that option.
•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, nor expect to have any leases classified as sales-type or direct financing. For our operating lease, 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 liabilitiesIntangible assets and liabilities were recorded at fair value on the date of Seadrill's emergence from Chapter 11 in February 2022 less accumulated amortization. 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. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset is its new accounting basis. Refer to Note 16 – "Other assets". Our intangible liabilities include unfavorable drilling contracts and unfavorable leasehold improvements. Refer to Note 21 – "Other liabilities".
Derivative financial instruments and hedging activities Derivative financial instruments and hedging activitiesOur derivative financial instruments are measured at fair value and are not designated as a hedging instruments. Changes in fair value are recorded as a gain or loss as a separate line item within "financial items" in the Consolidated Statements of Operations.
Trade payables Trade payablesTrade payables are liabilities to a supplier for a good or service provided to us.
Deferred charges Deferred chargesLoan related costs, including debt issuance, arrangement fees and legal expenses, are capitalized and presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, amortized over the term of the related loan. The amortization is included in interest expense. On emergence from Seadrill's previous Chapter 11 in 2018, our loan costs were reduced to nil. We recognized a discount on our debt to reduce its carrying value to its fair value. The debt discount was due to be unwound over the remaining terms of the debt facilities
Debt DebtWe have financed a significant proportion of the cost of acquiring our fleet of drilling units through the issue of debt instruments. 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. On emergence from the Chapter 11, we issued new debt instruments.
Pension benefits
Pension benefits
We have several defined benefit pension plans, defined contribution pension plans and other post-employment benefit obligations which provide retirement, death and early termination benefits. We recognize the service cost, as “Vessel and rig operating expenses” or as "Selling, general and administrative expenses" in our Consolidated Statements of Operations depending on the whether or not the related employee's role is directly attributable to rig activities.
Several defined benefit pension plans cover a number of our Norwegian employees that are all administered by a life insurance company. Our net obligation is calculated by estimating the amount of the future benefit that employees have earned in return for their cumulative service. The aggregated projected future benefit obligation is discounted to present value, from which the aggregated fair value of plan assets is deducted. The discount rate is the market yield at the balance sheet date on government bonds in the relevant currency and based on terms consistent with the post-employment benefit obligations.
We record the actuarial gains and losses in the Consolidated Statements of Operations when the net cumulative unrecognized actuarial gains or losses for each individual plan at the end of the previous reporting year exceed 10 percent of the higher of the present value of the defined benefit obligation and the fair value of plan assets at that date. These actuarial gains and losses are recognized over the expected remaining
working lives of the employees participating in the plans. Otherwise, recognition of actuarial gains and losses is included in other comprehensive income. Those amounts will be subsequently recognized as a component of net periodic pension cost on the same basis as the amounts recognized in accumulated other comprehensive income.On retirement, or when an employee leaves the company, the member’s pension liability is transferred to the life insurance company administering the plan, and the pension plan no longer retains an obligation relating to the leaving member. This action is deemed to represent a settlement under U.S. GAAP, as it represents the elimination of significant risks relating to the pension obligation and related assets. Under settlement accounting, the portion of the net unrealized actuarial gains/losses corresponding to the relative value of the obligation reduction is recognized through the Consolidated Statement of Operations. However, settlement accounting is not required if the cost of all settlements in a year is not deemed to be significant in the context of the plan. We deem the settlement not to be significant when the cost of settlements in the year is less than the sum of service cost and interest cost in the year. In this case, the difference between the reduction in benefit obligation and the plan assets transferred to the life insurance company is recognized within “Other Comprehensive Income,” rather than being recognized in the Consolidated Statement of Operations.
Loss contingencies Loss contingenciesWe recognize a loss contingency in the Consolidated Balance Sheets where we have a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Treasury shares Treasury sharesTreasury shares are recognized at cost as a component of equity. We record the nominal value of treasury shares purchased as a reduction in share capital. The amount paid in excess of the nominal value is treated as a reduction of additional paid-in capital. Upon Seadrill's previous emergence from Chapter 11 in 2018, we no longer had any treasury shares.
Share-based compensation Share-based compensationAfter 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 (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 GuaranteesGuarantees 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. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. 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.
Recently adopted and issued accounting standards
1) Recently adopted accounting standards
We adopted the following accounting standard update ("ASUs") since the reporting date of our Form 20-F report (for the year ended December 31, 2021 (Predecessor)), which had no material impact on our Consolidated Financial Statements.
ASU 2020-06 - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
Simplifies the guidance in U.S. GAAP on the issuer’s accounting for convertible debt instruments. Under current guidance, applying the separation models in ASC 470-20 to convertible instruments with a beneficial conversion feature or a cash conversion feature involves the recognition of a debt discount, which is amortized to interest expense. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that was within the scope of those models before the adoption of ASU 2020-06. Seadrill does not have any instruments with beneficial conversion or cash conversion feature. Accordingly, adoption of this standard had no impact on the financial statements.
ASU 2021-05 - Lessors - Certain Leases with Variable Lease Payments
Requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate (hereafter referred to as “variable payments”) as an operating lease on the commencement date of the lease if specified criteria are met. Seadrill does not have any sales-type or direct financing leases.
ASU 2021-08 - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Requires contract assets and liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured on the
acquisition date in accordance with ASC 606. The Company elected to early adopt and apply this standard as of January 1, 2022 as it is relevant to the emergence from Chapter 11 bankruptcy and application of fresh-start accounting. The Company’s deferred revenues balances were evaluated on the basis of ASC 606 at the measurement date (in accordance with ASU 2021-08). No adjustment was made on transition.
ASU 2022-03 - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions
Clarifies that a “contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security” and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value (i.e., the entity should not apply a discount related to the contractual sale restriction). In addition, the ASU prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. Seadrill does not apply any discounts related to contractual sale restrictions.
ASU 2022-04 - Liabilities - Supplier Finance Programs
The amendments in this ASU address investor and other financial statement user requests for additional information about the use of supplier finance programs by the buyer party to understand the effect of those programs on an entity’s working capital, liquidity, and cash flows. Seadrill does not have any supplier finance programs.
ASU 2022-05 - Financial Services - Insurance (Topic 944)
The Board is issuing this Update to reduce implementation costs and complexity associated with the adoption of long-term duration contracts ("LDTI") for contracts that have been derecognized in accordance with the amendments in this update before the LDTI effective date. Not applicable to Seadrill. Only relates to insurance entities.
ASU 2020-04, 2021-01, 2022-06 - Reference Rate Reform (Topic 848)
Regulators and market participants in various jurisdictions have undertaken efforts, generally referred to as reference rate reform, to eliminate certain reference rates and introduce new reference rates that are based on a larger and more liquid population of observable transactions. As a result of the reference rate reform initiative, certain widely used reference rates such as LIBOR are expected to be discontinued. This Topic and associated updates provide optional expedients for applying the guidance for contract modifications or other situations affected by reference rate reform. This is not relevant as Seadrill's contracts are linked to the new reference rates and management has not identified any contracts that are affected by the reference rate reform.
2) Recently issued accounting standards
There are currently no ASUs recently issued since the reporting date that are expected to materially affect our Consolidated Financial Statements and related disclosures in future periods.
v3.23.1
Chapter 11 (Tables)
 12 Months Ended
Dec. 31, 2022
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 include the following:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Senior under-secured external debt— 5,662
Accounts payable and other liabilities— 36
Accrued interest on external debt— 34
Amount due to related party— 503
Liabilities subject to compromise— 6,235
Liabilities subject to compromise are presented on the Consolidated Balance Sheet as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor) as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Liabilities subject to compromise— 6,117 
Liabilities subject to compromise associated with assets held for sale— 118 
Total liabilities subject to compromise— 6,235 
Schedule of reorganization items
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
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)—
Gain on write-off of related party payables————
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 included extinguishment of our secured external debt and amounts due under our sale and leaseback agreements with SFL Corporation. 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, 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.
v3.23.1
Fresh Start Accounting (Tables)
 12 Months Ended
Dec. 31, 2022
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 EQUITY
Current liabilities
Trade accounts payable53−−53
Liabilities associated with asset held for sale - current64−−64
Other current liabilities16452(e)17(q)233
Total current liabilities2815217350
Liabilities subject to compromise6,119(6,119)(f)−−
Liabilities subject to compromise associated with asset held for sale118(118)(f)−−
Non-current liabilities
Long-term debt—951(g)−951
Deferred tax liabilities7−(1)(r)6
Liabilities associated with asset held for sale - non-current2−−2
Other non-current liabilities108−63(s)171
Total non-current liabilities117951621,130
EQUITY
Predecessor common shares of par value10(10)(h)−−
Predecessor additional paid-in capital3,504(3,504)(h)−−
Accumulated other comprehensive loss(1)1(h)−−
Retained (deficit)/earnings(7,322)7,080(i)242(t)−
Successor common shares of par value−−−−
Successor additional paid-in capital−1,499(j)−1,499
Total shareholders’ (deficit)/equity(3,809)5,0662421,499
Total liabilities and equity2,826(168)3212,979
* The total valuation of drilling units amounts to $1,882 million, of which $1,575 million relates to continuing operations and $307 million relates to discontinued operations.
Reorganization Adjustments
(a)Reflects the net cash receipts that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Receipt of cash from the issuance of the Term Loan Facility175
Receipt of cash from the issuance of the Convertible Bond50
Proceeds from the issuance of the New Second Lien Facility683
Settlement of the Prepetition Credit Agreement(683)
Payment of the AOD cash out option(116)
Payment of success-based advisor fees(28)
Payment of the arrangement & financing fee for the Term Loan Facility(5)
Transfer of cash to restricted cash for the professional fee escrow account funding(2)
Change in cash and cash equivalents74
(b)Reflects the net restricted cash payments that occurred on the Effective Date as follows:
(In $ millions)
February 22, 2022
(Predecessor)
Payment of net scrap rig proceeds to holders of Prepetition Credit agreement claims(45)
Return of cash collateral to SFL for the amended West Linus lease agreement
(7)
Cash transferred from unrestricted cash for the professional fee escrow account funding2
Change in restricted cash(50)
(c)Reflects the change in other current assets for the following activities:
(In $ millions)
February 22, 2022
(Predecessor)
Expense of Predecessor Directors & Officers insurance policy(17)
Expense of the Commitment Premium and other capitalized debt issuance costs(24)
Recognition of the right-of-use asset associated with the modified West Linus bareboat lease
24
Change in other current assets(17)
(d)Reflects the change in drilling units for the derecognition of the West Linus of $175 million associated with modification of lease.
(e)Reflects the change in other current liabilities:
(In $ millions)
February 22, 2022
(Predecessor)
Accrued liability due to holders of Prepetition Credit agreement claims for sold rig proceeds27
Recognition of lease liability and other accrued liability associated with the amended West Linus lease
25
Change in other current liabilities52
(f)Liabilities subject to compromise were settled as follows in accordance with the Plan:
(In $ millions)
February 22, 2022
(Predecessor)
Senior under-secured external debt5,662
Accounts payable and other liabilities35
Accrued interest on external debt34
Amounts due to SFL Corporation under leases for the West Taurus and West Linus
506
Total liabilities subject to compromise (1)
6,237
Payment of the AOD cash out option(116)
Issuance of the New 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
(1) Attributable to:
Continuing operations6,119
Discontinued operations118
(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 New Second Lien Facility683
Issuance of the Convertible Bond50
Record the exit fee on the Term Loan Facility and New 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 Paratus of $14 million and in Sonadrill of $3 million.
(m)Reflects the fair value adjustment to drilling units and the elimination of accumulated depreciation.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments279
Attributable to:
Continuing operations316
Discontinued operations(37)
(n)Reflects the fair value adjustment to deferred tax assets of $1 million for favorable management contracts.
(o)Reflects the fair value adjustment to equipment and the elimination of accumulated depreciation.
(p)Reflects fair value adjustment to other non-current assets for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for favorable drilling and management service contracts42
Write-off of non-current portion of historical favorable contracts held at amortized cost(9)
Write-off of non-current portion of deferred mobilization costs held at amortized cost(4)
Change in other non-current assets29
Attributable to:
Continuing operations26
Discontinued operations3
(q)Reflects the fair value adjustment to other current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts18
Write-off of current portion of historical unfavorable contracts held at amortized cost(1)
Change in other current liabilities17
(r)Reflects the fair value adjustment to deferred tax liabilities of $1 million to write-off previously recognized Fresh Start balances.
(s)Reflects the fair value adjustment to other non-current liabilities for the following:
(In $ millions)
February 22, 2022
(Predecessor)
Record fair value adjustment for unfavorable drilling contracts67
Write-off of non-current portion of historical unfavorable contracts held at amortized cost(4)
Change in other non-current liabilities63
(t)Reflects the cumulative impact of the Fresh Start accounting adjustments discussed above.
(In $ millions)
February 22, 2022
(Predecessor)
Total Fresh start adjustments242
Attributable to:
Continuing operations266
Discontinued operations(24)
v3.23.1
Current expected credit losses (Tables)
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Movement in allowance for credit losses and credit loss expense The following table summarizes the movement in the allowance for credit losses for the year ended December 31, 2022 (Successor).
 (In $ millions)
Allowance for credit losses - other current assetsAllowance for credit losses - related party STAllowance for credit losses related party LTTotal Allowance for credit losses
January 1, 2021 (Predecessor)3 148 2 153 
Credit loss expense/(credit)— 36 (2)34 
Write-off(1)/(2)
(3)(183)— (186)
December 31, 2021 (Predecessor)— 1 — 1 
Credit loss expense— 1 — 1 
February 22, 2022 (Predecessor)— 2 — 2 
February 23, 2022 (Successor)— 2 — 2 
Credit loss credit— (1)— (1)
December 31, 2022 (Successor)— 1 — 1 
(1) In April 2021 we signed a settlement agreement with Aquadrill (formerly Seadrill Partners) which waived all claims on pre-petition positions held and resulted in a write-off of $54 million of trading receivables.
(2) Following the cancellation of the Wintershall contract, a settlement agreement was reached with Northern Ocean to extinguish all outstanding claims. The agreement became effective in December 2021 resulting in the write-off of $129 million of trading receivables and $3 million of reimbursement receivables.
The below table shows the classification of the credit loss expense within the Consolidated Statements of Operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Management contract expenses(1)1 (36)(142)
Other financial items— — 2 (2)
Total(1)1 (34)(144)
v3.23.1
Segment information (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of segment results
Operating revenues consist of contract revenues, reimbursable revenues, management contract revenues and other revenues. The segmental analysis of operating revenues is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment331 78 495 526 
Floaters463 85 363 358 
Jackup rigs47 6 38 59 
Other2 — 11 18 
Total843 169 907 961 
Depreciation and amortization
We record depreciation expense to reduce the carrying value of drilling unit and equipment balances to their residual value over their expected remaining useful economic lives and amortization of favorable and unfavorable contracts over the remaining lives of the contracts. The segmental analysis of depreciation is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment46 7 73 94 
Floaters75 6 37 176 
Jackups14 4 16 20 
Other— — 1 29 
Total135 17 127 319 
Impairment of drilling units and intangible 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. The segmental analysis of impairment is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment— — 152419 
Floaters— — — 3,555 
Jackups— — — 86 
Other— — — 48 
Total— — 152 4,108 
Operating income/(loss)
The segmental analysis of operating (losses)/income is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Harsh environment16 16 (138)(396)
Floaters20 9 (21)(3,781)
Jackups9 9 17 (86)
Other(10)3 (14)(218)
Operating income/(loss)35 37 (156)(4,481)
Unallocated items:   
Total financial items and other(98)3,704 (416)50 
(Loss)/income from continuing operations before income taxes(63)3,741 (572)(4,431)
Drilling assets - Total assets
The segmental analysis of drilling assets and total assets is shown in the table below.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Harsh environment rigs312 709 
Floaters1,198 524 
Jackup rigs158 198 
Total drilling units1,668 1,431 
Unallocated items:
Investments in associated companies84 27 
Assets held for sale— 1,492 
Cash and restricted cash598 516 
Other assets451 431 
Total assets2,801 3,897 
Drilling units - Capital expenditures
The segmental analysis of capital expenditures, including long term maintenance projects, is shown in the table below.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Harsh environment14 2 30 26 
Floaters200 18 35 110 
Jackups— — 19 1 
Total214 20 84 137 
Schedule of revenues and fixed assets by geographic area
Revenues are attributed to geographical segments based on the country where the revenues are generated. The following presents our revenues and fixed assets by geographic area:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Norway231 78 486 480 
Angola220 43 125 89 
United States146 20 105 107 
Canada98 — — — 
Brazil95 19 121 51 
Others (1)
53 9 70 234 
Total revenue843 169 907 961 
(1)Other countries represent countries each with less than 10% of total revenues earned for any of the periods presented.
Fixed assets – drilling units (1)
Drilling unit fixed assets by geographic area based on location as at end of the year are as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Brazil714 169 
Norway312 710 
United States275 92 
Qatar144 156 
Others223 304 
Total1,668 1,431 
(1)Asset locations at the end of a period are not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during such period.
(2)Other 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
In the years ended December 31, 2022 (Successor), 2021 and 2020 (Predecessor), we had the following customers with total revenues greater than 10% in any of the periods presented:
SuccessorPredecessor
SegmentPeriod from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
SonadrillFloater21 %9 %— %— %
EquinorHarsh Environment14 %10 %15 %13 %
ConocoPhillipsHarsh Environment13 %13 %18 %18 %
Var EnergiHarsh Environment14 %11 %— %— %
LundinFloater1 %12 %13 %2 %
Northern OceanHarsh Environment— %— %4 %13 %
Others37 %45 %50 %54 %
100 %100 %100 %100 %
v3.23.1
Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of contract assets and contract liabilities from contracts with customers The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers:
SuccessorPredecessor
(In $ millions)December 31, 2022 December 31, 2021
Accounts receivable, net137 158 
Current contract liabilities (deferred revenues) (1)
(19)(25)
Non-current contract liabilities (deferred revenues) (1)
(42)(10)
(1)Current contract liabilities and non-current contract liabilities are included in “Other current liabilities” and “Other non-current liabilities” respectively in our Consolidated Balance Sheets.
Significant changes in the contract liabilities balances during the year ended December 31, 2021 were as follows:
(In $ millions)  Contract Liabilities
Net contract liability at January 1, 2021 (Predecessor)  (31)
Amortization of revenue that was included in the beginning contract liability balance  24 
Cash received, excluding amounts recognized as revenue(28)
Net contract liability at December 31, 2021 (Predecessor)  (35)
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)
v3.23.1
Other revenues (Tables)
 12 Months Ended
Dec. 31, 2022
Revenues [Abstract]  
Other revenues
Other revenues consist of the following:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Leasing revenues (i)
24 4 26 19 
Inventory Sales (ii)
9 — — — 
Early termination fees (iii)
— — 6 11 
Other (iv)
6 1 — — 
Total other revenues39 5 32 30 
i.Leasing revenues
Revenue earned on the charter of the West Castor, West Telesto and West Tucana to Gulfdrill, one of our related parties. Refer to Note 27 – "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 during the year.
iii. Early termination fees
Early termination fees were received in 2021 for the West Bollsta and in 2020 for the West Gemini.
iv. Other
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. 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.
v3.23.1
Other operating items (Tables)
 12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Abstract]  
Other operating items
Other operating items consist of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Impairment of long lived assets (i)
— — (152)(4,087)
Impairment of intangibles (ii)
— — — (21)
Gain on disposals (iii)
1 2 47 15 
Other operating income (iv)
— — 54 9 
Total other operating items1 2 (51)(4,084)
i. 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"
In 2020, we determined the global impact of the COVID-19 pandemic, and continued down cycle in the offshore drilling industry, were indicators of impairment on certain assets. Following assessments of recoverability in March 2020 and December 2020, we recorded total impairment charges of $4,087 million against our drilling fleet.
ii. Impairment of intangibles
On December 1, 2020, Seadrill Partners (now Aquadrill) announced it had filed a voluntary petition under Chapter 11. Under Chapter 11 we were required to continue to provide the management services only at market rate. We concluded that we no longer had a favorable contract and the intangible asset relating to Seadrill Partners was fully impaired.
iii. Gain on disposals
Following the impairments recognized in 2020, Seadrill disposed of seven rigs in 2021, and one rig in 2020, all of which had previously been impaired in full. The full consideration, less costs to sell, was recognized as a gain
The gains on disposal in 2022 Successor period relate to the sale of sundry assets of West Tucana and West Carina and to the sale of capital spares on the West Hercules and parts on the West Navigator. The gains on disposal in the Predecessor period related to the sale of the West Venture on January 19, 2022.
Other operating income
Other operating income consists of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Pre-petition liabilities write-off (a)
— — 27 — 
War risk insurance rebate (b)
— — 22 — 
Loss of hire insurance settlement (c)
— — 2 9
Other— — 3 — 
Total other operating income— — 54 9 
a) Prepetition liabilities write-off
Write-off of prepetition 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.
b) War risk insurance rebate
Receipt of $22 million distribution from The Norwegian Shipowners' Mutual War Risks Insurance Association ("DNK"), representing a rebate of past premium paid.
c) Loss of hire insurance settlement
The 2021 insurance gain relates to excess recovery on the physical damage claimed on the Sevan Louisiana. The 2020 gain relates to the settlement of a claim on our loss of hire insurance policy following an incident on the Sevan Louisiana.
v3.23.1
Interest expense (Tables)
 12 Months Ended
Dec. 31, 2022
Interest Expense [Abstract]  
Summary of interest expense
Interest expense consists of the following:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Cash interest on debt facilities (a)
(95)— (25)(256)
Interest on SFL leases (b)
— (7)(84)(12)
Unwind of discount debt— — — (44)
Write off of discount on debt (c)
— — — (86)
Guarantee and commission fees(3)— — — 
Interest expense(98)(7)(109)(398)
(a) Cash interest on debt facilities
We incur cash and payment-in-kind interest on our debt facilities. This is summarized in the table below.
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Pre-filing senior credit facilities— — (25)(229)
Pre-filing debt of consolidated variable interest entities— — — (27)
Post-emergence first lien senior secured(14)— — — 
Post-emergence second lien senior secured(78)— — — 
Post-emergence unsecured senior convertible bond(3)— — — 
Cash and payment-in-kind interest(95)— (25)(256)
v3.23.1
Taxation (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of income taxes Income taxes consist of the following:
 SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Current tax expense/(benefit):   
Bermuda— — — — 
Foreign15 3 2 6 
Deferred tax expense/(benefit):
Bermuda— — — — 
Foreign(5)(1)(2)(7)
Deferred taxes acquired during the year— — — — 
Tax related to internal sale of assets in subsidiary, amortized for group purposes— — — — 
Total tax expense/(benefit)10 2 — (1)
Effective tax rate16.0 %— %— %— %
Schedule of income tax reconciliation
The income taxes for the period from February 23, 2022 through December 31, 2022 (Successor), the period from January 1, 2022 through February 22, 2022 (Predecessor), the year ended December 31, 2021 and the year ended December 31, 2020 (Predecessor) differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows:
 SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Effect of change on unrecognized tax benefits (5)— 2 (8)
Effect of unremitted earnings of subsidiaries1 (1)— (2)
Effect of taxable income in various countries14 3 (2)9 
Total tax expense/(benefit)10 2 — (1)
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/(liabilities) consist of the following:
Deferred tax assets:
SuccessorPredecessor
(In $ millions)December 31, 2022 December 31, 2021
Pensions and stock options1 3 
Provisions27 30 
Property, plant and equipment92 51 
Net operating losses carried forward296 320 
Other12 9 
Gross deferred tax assets428 413 
Valuation allowance(413)(403)
Deferred tax assets, net of valuation allowance15 10 
Deferred tax liabilities:
Successor Predecessor
(In $ millions)December 31, 2022 December 31, 2021
Unremitted Earnings of Subsidiaries8 8 
Intangibles1 1 
Gross deferred tax liabilities9 9 
Net deferred tax asset/(liability)6 1
Schedule of changes in uncertain tax positions The changes to our balance related to unrecognized tax benefits were as follows:
SuccessorPredecessor
 (In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Balance at the beginning of the period84 83 82 89 
Increases as a result of positions taken in prior periods3 1 2 1 
Increases as a result of positions taken during the current period— — 2 — 
Decreases as a result of positions taken in prior periods— — (1)(4)
Decreases due to settlements— — (1)(1)
Decreases as a result of a lapse of the applicable statute of limitations(2)— (1)(3)
Balance at the end of the period85 84 83 82 
Summary of tax years that remain subject to examination
The following table summarizes the earliest tax years that remain subject to examination by other major taxable jurisdictions in which we operate. 
JurisdictionEarliest Open Year
Kuwait2012
Nigeria2014
United States2018
Mexico2011
Norway2015
Brazil2009
v3.23.1
Earnings/(loss) per share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of calculation of basic and diluted EPS
The components of the numerator for the calculation of basic and diluted EPS are as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)(As adjusted)
Net loss/(profit) from continuing operations (73)3,739 (572)(4,430)
Profit/(loss) from discontinued operations 274 (33)(15)(233)
Net profit/(loss) available to stockholders201 3,706 (587)(4,663)
Effect of dilution - interest on unsecured senior convertible bond (Note 11)3 — — — 
Diluted net profit/(loss) available to stockholders204 3,706 (587)(4,663)
The components of the denominator for the calculation of basic and diluted EPS/LPS are as follows:
SuccessorPredecessor
(In millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Basic earnings/(loss) per share:
Weighted average number of common shares outstanding50 100 100 100 
Diluted earnings/(loss) per share:
Effect of dilution3 — — — 
Weighted average number of common shares outstanding adjusted for the effects of dilution53 100 100 100 
The basic and diluted EPS/LPS are as follows:     
SuccessorPredecessor
(In $)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Basic/Diluted EPS: continuing operations ($)(1.46)37.25 (5.70)(44.11)
Basic EPS ($)4.02 36.92 (5.85)(46.43)
Diluted EPS ($)3.88 36.92 (5.85)(46.43)
v3.23.1
Restricted cash (Tables)
 12 Months Ended
Dec. 31, 2022
Restricted Cash and Investments [Abstract]  
Schedule of restricted cash
Restricted cash consists of the following:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Demand deposit pledged as collateral for tax related guarantee74 63 
Cash held in escrow23 23 
Accounts pledged as collateral for performance bonds and similar guarantees10 28 
Accounts pledged as collateral for guarantees related to rig recycling— 14 
Proceeds from rig sales— 47 
Accounts pledged as collateral for SFL Leases— 37 
Other11 11 
Total restricted cash118 223 
Restricted cash is presented in our Consolidated Balance Sheets as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Current restricted cash44 160 
Non-current restricted cash74 63 
Total restricted cash118 223 
v3.23.1
Other assets (Tables)
 12 Months Ended
Dec. 31, 2022
Other Assets [Abstract]  
Schedule of other assets
As at December 31, 2022 (Successor) and 2021 (Predecessor), other assets included the following: 
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Deferred contract costs111 15 
Taxes receivable42 48 
Favorable drilling and management services contracts42 9 
Prepaid expenses37 51 
Right of use asset9 24 
Reimbursable amounts due from customers8 13 
Derivative asset - interest rate cap5 — 
Restructuring backstop commitment fee— 20 
Other8 44 
Total other assets262 224 
Other assets are presented in our Consolidated Balance Sheets as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Other current assets169 197 
Other non-current assets93 27 
Total other assets262 224 
 (In $ millions)
Gross carrying amountAccumulated amortizationNet carrying amount
As at January 1, 2021 (Predecessor)266 (256)10 
Amortization— (1)(1)
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 
v3.23.1
Investment in associated companies (Tables)
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of ownership percentages and book values in associated companies
We have the following investments in associated companies:
SuccessorPredecessor
Ownership percentageDecember 31, 2022December 31, 2021
Paratus Energy Services Ltd (i)
35 %100 %
Gulfdrill (ii)
50 %50 %
Sonadrill (iii)
50 %50 %
We own 50% equity interests in Gulfdrill and Sonadrill and a 35% equity interest in Paratus Energy Services Ltd ("PES") (formerly NSNCo). We account for our 50% and 35% investments under the equity method. For transactions with related parties refer to Note 27 - "Related party transactions".
i. Paratus Energy Services Ltd
Paratus Energy Services Ltd ("PES"), formerly known as Seadrill New Finance Limited or "NSNCo", holds investments in SeaMex (100%), Seabras Sapura (50%), and Archer (15.7%). As part of Seadrill's comprehensive restructuring process, we disposed of 65% of our equity interest in PES in January 2022, reducing our shareholding to 35%. As a result, the carrying value of PES's net assets were deconsolidated from Seadrill's Consolidated Balance Sheet and were replaced with an equity method investment representing the fair value of the retained 35% interest. This resulted in a loss of $112 million that was reported through reorganization items, as set out further in Note 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. In connection with the sale, on March 14, 2023, Seadrill also 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 (“SML”), dated January 20, 2022 (the “Paratus MSA”), and (ii) the Master Services Agreement by and among SeaMex Holdings, certain operating companies party thereto and SML, dated January 20, 2022 (the “SeaMex MSA”), respectively. The Paratus MSA will terminate effective July 12, 2023; and the SeaMex MSA will terminate effective September 10, 2023. We do not believe these terminations will have a material effect on the financial condition of the Company
For further information on Seadrill's comprehensive restructuring, including the disposal of the 65% interest in Paratus Energy Services, please refer to Note 4 - "Chapter 11".
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. 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, 2022, 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 $21 million 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.
At the year end, the book values of our investments in our associated companies were as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
PES
31 — 
Sonadrill49 27 
Gulfdrill4 — 
Total84 27 
Share in results from associated companies
Our share in results of our associated companies were as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
(As adjusted)
PES(8)(3)— — 
Sonadrill2 1 5 (2)
Gulfdrill4 — (2)2 
Total share in results from associated companies (net of tax)(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)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating revenues200 14 94 56 
Net operating income/(loss)21 2 18 (2)
Net income/(loss)10 2 11 (5)
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Sonadrill (net of tax)5 1 5 (2)
Basis difference amortization(3)— — — 
Net share in results from Sonadrill2 1 5 (2)
The results of Gulfdrill and our share in those results is summarized below:
GulfdrillSuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating revenues167 28 142 44 
Net operating income/(loss)14 2 (4)6 
Net income/(loss)9 1 (4)4 
Seadrill ownership percentage50 %50 %50 %50 %
Share in results from Gulfdrill (net of tax)4 — (2)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:
SonadrillSuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Current assets105 72 
Non-current assets1 — 
Current liabilities(40)(18)
Non-current liabilities(1)— 
Net Assets65 54 
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment33 27 
Basis difference net of amortization (i)
16 — 
Net book value of Seadrill investment49 27 
(i) As discussed above, 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:
GulfdrillSuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Current assets110 120 
Non-current assets80 173 
Current liabilities(129)(182)
Non-current liabilities(54)(113)
Net assets/(liabilities)7 (2)
Seadrill ownership percentage50 %50 %
Book value of Seadrill investment4 — 
v3.23.1
Drilling units (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of drilling units
Changes in drilling units for the periods presented in this report were as follows:
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2021 (Predecessor)2,673 (918)1,755 
Additions84 — 84 
Depreciation— (119)(119)
Impairment (1)
(152)— (152)
Derecognition of West Hercules (2)
(364)227 (137)
As at January 1, 2022 (Predecessor)2,241(810)1,431 
Additions20 — 20 
Depreciation— (17)(17)
Disposal of West Venture
(23)23— 
Balance before reorganization and fresh start adjustments2,238 (804)1,434 
Derecognition of West Linus (2)
(211)36(175)
Fresh Start accounting (3)
(452)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) In June 2021 we recorded an impairment of $152 million (December 31, 2020: $4.1 billion) which was reported within "Loss on impairment of long-lived assets" on our Consolidated Statement of Operations. Please refer to Note 12 – "Loss on impairment of long-lived assets" for further details.
(2) The lease agreements with SFL for the West Hercules and West Linus were amended such that the rigs were derecognized from drilling units in August 2021 and February 2022 respectively and replaced with right of use assets within other assets. The West Linus and West Hercules were returned to SFL in September 2022 and December 2022 respectively.
(3) On emergence from Chapter 11 proceedings, the carrying values of our drilling units were adjusted to fair value as a result of the implementation of Fresh Start accounting. The fair values were determined through a combination of income-based and market based approaches, with accumulated depreciation being reset to nil. Refer to Note 5 - "Fresh Start Accounting" for further information.
v3.23.1
Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Equipment
Equipment consists of office equipment, software, furniture and fittings. Changes in equipment balances for the periods presented in this report were as follows:
 (In $ millions)
CostAccumulated depreciationNet book value
As at January 1, 2021 (Predecessor) 39 (20)19 
Depreciation— (8)(8)
As at December 31, 2021 (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 
v3.23.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of debt
The table below sets our external debt agreements as at December 31, 2022 (Successor) and 2021 (Predecessor):
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Secured debt:
Secured Credit Facilities— 5,545 
Term Loan Facility175 — 
Second Lien Facility271 — 
Total Secured debt 446 5,545 
Unsecured bond
Unsecured senior convertible bond50 — 
Total unsecured bond50 — 
Total principal debt 496 5,545 
Exit fee
Term Loan Facility9 — 
Second Lien Facility13 — 
Total exit fee22 — 
Less: Debt reported as liabilities subject to compromise (1)
— (5,545)
Total debt518 — 
(1) Certain subsidiaries filed for Chapter 11 bankruptcy protection on February 7, 2021 and February 10, 2021. As a result, the outstanding balance of the senior credit facilities were classified within liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheet at December 31, 2021. For further information on our bankruptcy proceedings refer to Note 4 - "Chapter 11".
Debt is presented in our Consolidated Balance Sheets as:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Debt due within one year22 — 
Long-term debt496 — 
Total debt 518 — 
Schedule of debt maturities
The outstanding debt as at December 31, 2022 (Successor) was repayable as follows, for the years ended December 31:
(In $ millions)Term LoanSecond LienConvertible BondTotal repayments
2023— 22 — 22 
2024— 22 — 22 
2025— 22 — 22 
2026184 22 — 206 
2027— 196 — 196 
2028 and thereafter— — 50 50 
Total debt principal and exit fee payments184 284 50 518 
v3.23.1
Other liabilities (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Other liabilities
As at December 31, 2022 (Successor) and December 31, 2021 (Predecessor), other liabilities included the following:  
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Accrued expenses124 78 
Uncertain tax positions85 83 
Unfavorable drilling contracts70 6 
Contract liabilities61 35 
Employee withheld taxes, social security and vacation payments47 43 
Taxes payable29 23 
Lease liabilities9 35 
Accrued interest expense4 — 
Other liabilities67 28 
Total Other Liabilities496 331 
Other liabilities are presented in our Consolidated Balance Sheet as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Other current liabilities306 219 
Other non-current liabilities190 112 
Total Other Liabilities496 331 
Movement in unfavorable drilling contracts
 (In $ millions)
Gross Carrying AmountAccumulated amortizationNet carrying amount
As at January 1, 2021 (Predecessor)66 (59)7 
Amortization— (1)(1)
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)2023202420252026 and thereafterTotal
Amortization of unfavorable contracts24 24 19 3 70 
v3.23.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022, were as follows:
(In $ millions)Year ended December 31, 2022
20234 
20242 
20252 
2026 and thereafter3 
Total11 
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 at December 31, 2022:
SuccessorPredecessor
(In $ millions)Year ended December 31, 2022Year ended December 31, 2021
Total undiscounted cash flows11 37 
Less short term leases— — 
Less discount(2)(2)
Operating lease liability9 35 
Of which:
Current3 30 
Non-current6 5 
Total 9 35 
Supplementary information regarding lease accounting
The following table gives supplementary information regarding our lease accounting at December 31, 2022:
SuccessorPredecessor
(In $ million)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Operating Lease Cost:
Operating lease cost36 4 42 19 
Short-term lease cost3 1 1 2 
Total lease cost39 5 43 21 
Other information:
Cash paid for lease liabilities- operating cash flows39 5 41 21 
ROU assets obtained in exchange for lease liabilities — 24 24 53 
Weighted-average remaining lease term in months52221914
Weighted-average discount rate10%9%10%24%
Operating subleases and leases, lessor, future undiscounted cash flows, and income
(In $ millions)Year ended December 31, 2022
202324 
202414 
20254 
2026 and thereafter— 
Total42 
Refer to Note 9 – "Other revenue" for details of the revenues recorded in respect of the above leases.
v3.23.1
Common shares (Tables)
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Change in common shares
 Issued and fully paid share capital
SharesPar value each$ millions
As at January 1, 2020 (Predecessor)100,234,973 $0.10 10 
2020 RSU share issuance149,462 $0.10 — 
As at January 1, 2021 and December 31, 2021 (Predecessor)100,384,435 $0.10 10 
Balance before reorganization and fresh start adjustments100,384,435 $0.10 10 
Cancellation of Predecessor equity(100,384,435)$0.10 (10)
Issuance of Successor common stock49,999,998 $0.01 — 
As at February 22, 2022 (Predecessor)49,999,998 $0.01 — 
As at February 23, 2022, and December 31, 2022 (Successor)49,999,998 $0.01 — 
v3.23.1
Accumulated other comprehensive income/(loss) (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2021 (Predecessor)(2)(28)4 (26)
Other comprehensive income from continuing operations— — — — 
Other comprehensive income from discontinued operations— 9 2 11 
As at December 31, 2021 (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 
v3.23.1
Share based compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-based compensation expense
The share based compensation expense for our share options and Restricted Stock Unit ("RSU") plans in the Consolidated Statements of Operations are as follows:
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Share based compensation expense— — — 8 
Total share based compensation expense— — — 8 
v3.23.1
Pension benefits (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of consolidated balance sheet position
Net defined benefit pension asset/(obligation) is as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Defined benefit obligation - Non-current liabilities(1)(5)
Deferred tax asset— 1 
Net defined benefit pension obligation(1)(4)
Schedule of annual pension cost
We record pension costs in the period during which the services are rendered by the employees.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Service cost— — — 1 
Interest cost on prior years’ benefit obligation— — — — 
Gross pension cost for the year— — — 1 
Expected return on plan assets— — — — 
Net pension cost for the year— — — 1 
Impact of settlement/curtailment of defined benefit plans— — 2 1 
Total net pension cost— — 2 2 
Schedule of funded status of the defined benefit plan
Funded defined benefit pension obligation is as follows:
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Projected defined benefit obligations(10)(16)
Plan assets at market value9 11 
Funded defined benefit pension obligation(1)(5)
Change in projected benefit obligations
Change in projected benefit obligation is as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Projected benefit obligations at beginning of period16 16 16 40 
Service cost— — — 1 
Benefits paid(1)— (1)(1)
Change in unrecognized actuarial gain(3)— 1 2 
Settlement (1)
— — — (25)
Foreign currency translations(2)— — (1)
Projected benefit obligations at end of period10 16 16 16 
(1)Two Norwegian defined benefit plans were settled and paid out in the year ended December 31, 2020 (Predecessor).
Change in pension plan assets
Change in pension plan assets is as follows:
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Fair value of plan assets at beginning of year11 11 16 39 
Contribution by employer1 — 1 6 
Benefits paid(1)— (1)(1)
Actuarial loss(1)— — — 
Settlement (1)
— — (1)(27)
Foreign currency translations(1)— — (1)
Other (2)
— — (4)— 
Fair value of plan assets at end of year9 11 11 16 
(1)Two Norwegian defined benefit plans were settled and paid out in 2020.
(2)In 2021, we received the contribution back for two Norwegian defined benefit plans that were terminated in 2020.
Schedule of assumptions used in calculation of pension obligations
Assumptions used in calculation of pension obligations 
SuccessorPredecessor
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Rate of compensation increase at the end of year2.50 %2.25 %2.25 %2.25 %
Discount rate at the end of year3.20 %1.50 %1.50 %1.70 %
Prescribed pension index factor1.60 %1.20 %1.20 %1.20 %
Expected return on plan assets for the year2.90 %2.90 %2.90 %2.60 %
Employee turnover4.00 %4.00 %4.00 %4.00 %
Expected increases in Social Security Base3.50 %2.25 %2.25 %2.00 %
Schedule of weighted-average asset allocation of funds related to defined benefit plan
The weighted-average asset allocation of funds related to our defined benefit plan at December 31, was as follows:
Pension benefit plan assets  
SuccessorPredecessor
December 31, 2022December 31, 2021
Equity securities10.2 %9.7 %
Debt securities73.6 %65.3 %
Real estate11.0 %13.6 %
Money market4.2 %10.6 %
Other1.0 %0.8 %
Total100.0 %100.0 %
Schedule of expected annual pension plan contributions The table below shows our expected annual pension plans contributions under defined benefit plans for the years ending December 31, 2023-2032. The expected payments are based on the assumptions used to measure our obligations at December 31, 2022 and include estimated future employee services. 
(In $ millions)December 31, 2022
20231 
20241 
20251 
20261 
2027-20322 
Total payments expected during the next 10 years6 
v3.23.1
Related party transactions (Tables)
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Schedule of related party transactions
The below table provides an analysis of related party revenues for periods presented in this report.
SuccessorPredecessor
 (In $ millions)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Management fee revenues (a)
174 12 98 135 
Reimbursable revenues (b)
12 3 65 148 
Leasing revenues (c)
24 4 26 19 
Other (d)
6 — — 3 
Total related party operating revenues 216 19 189 305 
(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. 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)
Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
West Bollsta lease (e)
— — (57)(10)
West Hercules lease (f)
— (3)(10)— 
Other related party operating expenses (g)
— — (3)(2)
Total related party operating expenses— (3)(70)(12)
(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. Refer to Note 22 - "Leases" for details.
(f) Seadrill incurred operating lease expense related to its lease of the West Hercules following a lease modification in August 2021 which resulted in the lease being reclassified as an operating lease rather than a finance lease. Refer to Note 22 - "Leases" for details. Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
(g) We received services from certain other related parties. These included management and administrative services from Frontline, warehouse rental from Seabras Sapura and other services from Archer and Seatankers. Following emergence from Chapter 11 proceedings, these companies are no longer related parties.
The below table provides an analysis of related party receivable balances for periods presented in this report.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
(As adjusted)
Related party loans and interest (h)
— 9 
Trading balances (i)
28 20 
Allowance for expected credit loss (j)
(1)(1)
Total related party receivables27 28 
Of which:
Amounts due from related parties - current27 28 
Amounts due from related parties - non-current— — 
Total amounts due from related parties 27 28 
(h) Seadrill provided a "Minimum Liquidity Shortfall" loan to SeaMex, which earned interest at 6.5% plus 3-month US LIBOR. The loan was fully settled in March 2022.
(i) Trading balances are comprised of receivables from Gulfdrill for lease income, which relates to charter fees for the three jackup rigs Seadrill provided to the joint venture and amounts due from SeaMex and Sonadrill for related party management and crewing fees. Per our contractual terms, these balances are either settled monthly or quarterly in arrears, or in certain cases, in advance.
(j) 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.
The below table provides an analysis of the receivable balance:
SuccessorPredecessor
 (In $ millions)December 31, 2022December 31, 2021
Gulfdrill9 13 
Sonadrill 17 4 
PES/SeaMex2 12 
Gross amount receivable28 29 
Less: CECL allowance (1)(1)
Receivable net of CECL allowance 27 28 
The below table provides an analysis of related party payable balances for periods presented in this report.
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
Liabilities from Seadrill to SFL (k)
— 503 
Total related party liabilities— 503 
Of which:
Amounts due to related parties - current— — 
Liabilities subject to compromise — 503 
(k) On filing for Chapter 11, our prepetition related party payables were reclassified to Liabilities subject to compromise ("LSTC") in our Consolidated Balance Sheets at December 31, 2021 (Predecessor). Upon emergence from Chapter 11 proceedings in February 2022, all LSTC balances were extinguished with a gain on settlement recognized in "Reorganization items, net". For further information refer to Note 5 - "Fresh Start Accounting". Following emergence from Chapter 11 proceedings, SFL is no longer a related party.
The following table provides a summary of the lease liabilities to SFL as at December 31, 2022 (Successor) and December 31, 2021 (Predecessor).
SuccessorPredecessor
(In $ millions)December 31, 2022December 31, 2021
West Taurus lease liability
— 345 
West Linus lease liability
— 158 
Total lease liabilities to SFL— 503 
v3.23.1
Fair values of financial instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial instruments measured at amortized cost
The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as at December 31, 2022 and December 31, 2021 are as follows:
SuccessorPredecessor
December 31, 2022December 31, 2021
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
(As adjusted)
Assets
Related party loans receivable (Level 2)
— — 9 9 
Liabilities
Liability subject to compromise- Secured credit facilities (Level 3)
— — 1,966 5,544 
Liability subject to compromise- Related Party Loan Payable (Level 3)
— — 176 503 
First Lien Senior Secured (Level 3)
195 184 — — 
Second Lien Senior Secured (Level 3)
284 284 — — 
Unsecured Convertible Bond - debt component (Level 3)
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, 2022 (Successor) and December 31, 2021 (Predecessor) are as follows: 
SuccessorPredecessor
As at December 31, 2022As at December 31, 2021
(In $ millions)Fair
value		Carrying
value		Fair
value		Carrying
value
Assets
Cash and cash equivalents (Level 1)
480 480 293 293 
Restricted cash (Level 1)
118 118 223 223 
Interest rate cap (Level 2)
5 5 — — 
v3.23.1
Business combination (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Seamex's identifiable assets acquired and liabilities assumed as at acquisition date
The following is a summary of SeaMex's identifiable assets acquired and liabilities assumed as at acquisition date:
(In $ millions)As at acquisition
Carrying amounts of major classes of assets
Cash and cash equivalents41 
Restricted cash21 
Accounts receivable, net316 
Intangible drilling contracts172 
Drilling units216 
Other assets17 
Total assets783 
Carrying amounts of major classes of liabilities
Amounts due to related parties133 
Long-term debt234 
Other liabilities88 
Total liabilities455 
Net asset acquired328 
Schedule of Seamex's operation results since the acquisition date included in discontinued operations The following is a summary of SeaMex's results since the acquisition date included in the discontinued operations for periods covered by the report.
(In $ millions)Period from January 1, 2022 through January 20, 2022Period from November 2, 2021 through December 31, 2021
Results from business combination
Operating revenues
Contract revenues1236
Total operating revenues1236
Operating expenses
Vessel and rig operating expenses(7)(25)
Selling, general and administrative expenses(1)(2)
Total operating expenses(8)(27)
Operating profit49
Financial and non-operating items
Interest expense(1)(4)
Others(1)(1)
Total financial items(2)(5)
Income before tax24
Income tax benefit(1)2
Income after tax16
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of disposals
The gain on sale, which is reported within discontinued operations in our income statement, and the sale proceeds, which is reported in our statement of cash flows, are summarized further in the table below:
(In $ millions)Gain on SaleReceived/(paid) to date
Initial Purchase Price 628 628 
Adjustment for working capital, cash, and reimbursement of reactivation costs53 50 
Less: Deal costs(11)(11)
Less: Fair value of indemnities and warranties(36)(8)
Net sales price634 659 
Less: Book value of KSA Business(358)— 
Total276 659 
Summary of carrying amounts of major classes of assets and liabilities classified as held-for-sales
The table below analyses the carrying amounts of assets and liabilities classified as held for sale between our two discontinued operations.
SuccessorPredecessor
(In $ millions)As at December 31, 2022As at December 31, 2021
Assets held for saleTotalPESKSA BusinessTotal
Current— 1,103 42 1,145 
Non-current— — 347 347 
Total assets held for sale— 1,103 389 1,492 
Liabilities associated with assets held for sale
Current— 948 35 983 
Liabilities subject to compromise— — 118 118 
Non-current— — 2 2 
Total liabilities associated with assets held for sale— 948 155 1,103 
Summary balance sheet and profit and loss information of KSA Business
The table below summarizes the balance sheet of the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill. The assets and liabilities of the KSA Business during these periods are classified as held for sale on Seadrill's consolidated balance sheet.
SuccessorPredecessor
(In $ millions)Year ended December 31, 2022Year ended December 31, 2021
Carrying amounts of major classes of assets
Cash and cash equivalents— 19 
Accounts receivable— 12 
Drilling units— 346 
Other assets— 12 
Total assets of KSA Business classified as held for sale— 389 
Carrying amounts of liabilities subject to compromise
Liabilities subject to compromise— 118
Carrying amounts of major classes of liabilities
Trade accounts payable— 6
Uncertain Tax Positions — 2
Other liabilities— 29
Total liabilities of KSA Business classified as held for sale— 37
Summary balance sheet and profit and loss information of Paratus Energy Services
The table below summarizes the balance sheet of PES for periods when it was a fully consolidated subsidiary of Seadrill. The assets and liabilities of PES during these periods are classified as held for sale on Seadrill's consolidated balance sheet.
SuccessorPredecessor
(In $ millions)As at December 31, 2022As at December 31, 2021
Carrying amounts of major classes of assets
Cash and cash equivalents— 48
Restricted cash— 21
Accounts receivable— 318
Intangible drilling contracts— 165
Drilling units— 215
Investment in associated companies— 239
Amount due from related parties— 69
Deferred tax assets— 6
Other assets— 22
Total assets of Paratus Energy Services Ltd classified as held for sale— 1,103
Carrying amounts of major classes of liabilities
Trade accounts payable— 7
Amounts due to related parties— 12
Long-term debt— 814
Uncertain tax positions— 25
Other liabilities— 90
Total liabilities of Paratus Energy Services Ltd classified as held for sale— 948
Summary of major classes of line Items constituting profit/(loss) of discontinued operations
The table below provides a further analysis of net income (loss) from discontinued operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Net income of Paratus Energy Services—(4)5(215)
Net income of KSA Business8(29)(20)(18)
Gain on disposal of KSA Business276———
Exit cost associated with disposal of KSA Business(10)———
Total profit/(loss) from discontinued operations274(33)(15)(233)
Basic EPS: discontinued operations ($)5.48(0.33)(0.15)(2.32)
Diluted EPS: discontinued operations ($)5.21(0.33)(0.15)(2.32)
The table below analyses the cash flows from discontinued operations between our two discontinued operations.
SuccessorPredecessor
(In $ millions)Period from February 23, 2022 through December 31, 2022Period from January 1, 2022 through February 22, 2022Year ended December 31, 2021Year ended December 31, 2020
Paratus Energy Services—(69)(18)(24)
KSA Business5(20)132
Net cash provided by/(used in) operating activities5(89)(5)(22)
Paratus Energy Services——2336
KSA Business(40)———
Net cash (used in)/provided by investing activities(40)—2336
Paratus Energy Services————
KSA Business1620—(96)
Net cash provided by/(used in) financing activities1620—(96)
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, except per share data)Period from February 23, 2022 through December 31, 2022
Period from January 1, 2022 through February 22, 2022
Year ended December 31, 2021Year ended December 31, 2020
Operating revenues
Contract revenues86 18 101 98 
Total operating revenues86 18 101 98 
Operating expenses
Vessel and rig operating expenses(45)(10)(64)(65)
Depreciation and amortization(22)(4)(28)(28)
Selling, general and administrative expenses(8)(1)(10)(6)
Total operating expenses(75)(15)(102)(99)
Operating profit11 3 (1)(1)
Financial and other non-operating items
Interest income— — — 1 
Interest expense— — — (11)
Reorganization items, net — (32)(14)— 
Other financial items(1)— — (2)
Net profit/(loss) before tax10 (29)(15)(13)
Income tax expense(2)— (5)(5)
Net profit/(loss) after tax8 (29)(20)(18)
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, except per share data)Period from February 23, 2022 through December 31, 2022
Period from January 1, 2022 through February 22, 2022
Year ended December 31, 2021Year ended December 31, 2020
Operating revenues
Contract revenues— 12 36— 
Total operating revenues— 12 36— 
Operating expenses
Operating expenses— (8)(27)— 
Total operating expenses— (8)(27)— 
Operating profit— 4 9— 
Financial and other non-operating items
Interest income— — 1826
Interest expense— (4)(77)(60)
Share in results from associated companies (net of tax)— (1)14 (77)
Loss on impairment of investments— — — (47)
Loss impairment of convertible bond from related party— — — (29)
Other financial items— (2)39(27)
Total financial items— (7)(6)(214)
Net profit/(loss) before tax— (3)3(214)
Income tax benefit/(expense)— (1)2(1)
Net profit/(loss) after tax— (4)5 (215)
v3.23.1
General Information (Details) - rig
 10 Months Ended
Dec. 31, 2022
Sep. 01, 2022
Jan. 31, 2022
Nov. 01, 2021
Lessor, Lease, Description [Line Items]        
Number of offshore drilling units owned by the company 14      
Number of rigs cold stacked 2      
Number of drilling units managed and operated for related parties 7      
Financial designation, predecessor and successor Successor      
Number of Jackup units   7 7 5
PES        
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      
SeaMex        
Lessor, Lease, Description [Line Items]        
Number of managed and operated rigs 5      
Sonangol        
Lessor, Lease, Description [Line Items]        
Number of managed and operated rigs 2      
v3.23.1
Accounting policies (Details)
 12 Months Ended
Dec. 31, 2022
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
Equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 5 years
Equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated economic useful life 3 years
v3.23.1
Chapter 11- Narrative (Details) - USD ($)
 2 Months Ended 11 Months Ended 12 Months Ended
Feb. 19, 2022
Feb. 10, 2021
Feb. 22, 2022
Dec. 31, 2021
Dec. 31, 2022
Feb. 28, 2022
Feb. 23, 2022
Jan. 31, 2022
Jan. 20, 2022
Jan. 01, 2022
Nov. 02, 2021
Reorganization, Chapter 11 [Line Items]                      
Long-term debt       $ 0 $ 518,000,000   $ 951,000,000        
Rights offering percentage   12.50%                  
Equity commitment premium percentage   4.25%                  
Backstop parties, commitment premium paid   7.50%                  
Commitment premium   2000000000.00%                  
% 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              
SeaMex                      
Reorganization, Chapter 11 [Line Items]                      
Voting rights       100.00%              
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%    
PES                      
Reorganization, Chapter 11 [Line Items]                      
Ownership interest prior to disposal (in percent)               65.00%   100.00%  
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            
Derivative, notional amount           $ 1,000          
Unsecured Convertible Bond - debt component (Level 3) | Unsecured notes                      
Reorganization, Chapter 11 [Line Items]                      
Long-term debt             $ 50,000,000        
v3.23.1
Chapter 11- Schedule of equity allocation (Details) - shares
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Feb. 21, 2022
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2019
Reorganization, Chapter 11 [Line Items]              
Number of shares (in shares) 49,999,998 49,999,998 49,999,998 100,384,435 100,384,435 100,384,435 100,234,973
% 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%          
v3.23.1
Chapter 11-Schedule of liabilities subject to compromise (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 22, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]      
Senior under-secured external debt $ 0    
Accounts payable and other liabilities 0    
Accrued interest on external debt 0    
Amount due to related party 0    
Total liabilities subject to compromise 0    
Liabilities subject to compromise 0   $ 6,117
Liabilities subject to compromise associated with assets held for sale $ 0   118
Predecessor      
Reorganization, Chapter 11 [Line Items]      
Senior under-secured external debt     5,662
Accounts payable and other liabilities     36
Accrued interest on external debt     34
Amount due to related party     503
Total liabilities subject to compromise     6,235
Liabilities subject to compromise   $ 6,119 6,117
Liabilities subject to compromise associated with assets held for sale   $ 118 $ 118
v3.23.1
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, 2021
Dec. 31, 2020
Feb. 23, 2022
Jan. 31, 2022
Jan. 01, 2022
Nov. 30, 2021
Reorganization, Chapter 11 [Line Items]                    
Gain on settlement of liabilities subject to compromise       $ 0            
Fresh Start valuation adjustments       0            
Loss on deconsolidation of Paratus Energy Services       0            
Advisory and professional fees       (15)            
Gain on write-off of related party payables       0            
Expense of predecessor Directors & Officers insurance policy       0            
Remeasurement of terminated lease to allowed claim       0            
Interest income on surplus cash       0            
Total reorganization items, net   $ 3,683   (15) $ (296) $ 0        
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 $ (152)     84 27   $ 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)                  
Income (loss) from equity method investments $ (112) (2)   $ (2) $ 3 0        
PES                    
Reorganization, Chapter 11 [Line Items]                    
Ownership interest ( in percent)     35.00% 35.00% 100.00%     35.00%   100.00%
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022   39   $ 31 $ 0          
Income (loss) from equity method investments   (3) $ 8 (8) 0 0        
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% 100.00%  
Income (loss) from equity method investments     $ 8              
Continuing operations                    
Reorganization, Chapter 11 [Line Items]                    
Total reorganization items, net       (15)            
Discontinued operations                    
Reorganization, Chapter 11 [Line Items]                    
Total reorganization items, net       $ 0            
Predecessor                    
Reorganization, Chapter 11 [Line Items]                    
Gain on settlement of liabilities subject to compromise   3,581     0 0        
Fresh Start valuation adjustments   242     0 0        
Loss on deconsolidation of Paratus Energy Services   (112)     0 0        
Advisory and professional fees   (44)     (127) 0        
Gain on write-off of related party payables   0     0 0        
Expense of predecessor Directors & Officers insurance policy   (17)     0 0        
Remeasurement of terminated lease to allowed claim   0     (186) 0        
Interest income on surplus cash   1     3 0        
Total reorganization items, net   3,651     (310) 0        
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) 0        
Predecessor | Discontinued operations                    
Reorganization, Chapter 11 [Line Items]                    
Total reorganization items, net   $ (32)     $ (14) $ 0        
v3.23.1
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
v3.23.1
Fresh Start Accounting - Reconciliation of Enterprise Value and Reorganization Value (Details) - USD ($)
$ / shares in Units, $ in Millions
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2019
Reorganization, Chapter 11 [Line Items]          
Enterprise value $ 2,095        
Cash and cash equivalents 336   $ 480 $ 293 $ 485
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   22 0  
Long-term debt 179   $ 496 $ 0  
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        
v3.23.1
Fresh Start Accounting - Schedule of Adjustments in Consolidated Balance Sheet (Details) - USD ($)
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Feb. 21, 2022
Jan. 20, 2022
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
Dec. 31, 2019
Fresh-Start Adjustments [Line Items]                  
Cash and cash equivalents $ 480,000,000 $ 336,000,000       $ 293,000,000     $ 485,000,000
Current restricted cash 44,000,000 85,000,000       160,000,000   $ 103,000,000  
Accounts receivable, net 137,000,000 169,000,000       158,000,000      
Amount due from related parties, net 27,000,000 42,000,000       28,000,000      
Assets held for sale - current 0 74,000,000       1,145,000,000      
Other current assets 169,000,000 197,000,000       197,000,000      
Total current assets 857,000,000 903,000,000       1,981,000,000      
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 84,000,000 64,000,000     $ (152,000,000) 27,000,000      
Drilling units 1,668,000,000 1,575,000,000       1,431,000,000      
Restricted cash 74,000,000 69,000,000       63,000,000   65,000,000  
Deferred tax assets 15,000,000 9,000,000       10,000,000      
Equipment 10,000,000 9,000,000       11,000,000      
Assets held for sale - non-current 0 311,000,000       347,000,000      
Other non-current assets 93,000,000 39,000,000       27,000,000      
Total non-current assets 1,944,000,000 2,076,000,000       1,916,000,000      
Total assets 2,801,000,000 2,979,000,000       3,897,000,000      
Trade accounts payable 76,000,000 53,000,000       53,000,000      
Liabilities associated with assets held for sale - current 0 64,000,000       983,000,000      
Other current liabilities 306,000,000 [1] 233,000,000       219,000,000 [1]      
Total current liabilities 404,000,000 350,000,000       1,255,000,000      
Liabilities subject to compromise 0         6,117,000,000      
Liabilities subject to compromise associated with assets held for sale 0         118,000,000      
Long-term debt 518,000,000 951,000,000       0      
Deferred tax liabilities 9,000,000 6,000,000       9,000,000      
Liabilities associated with assets held for sale - non-current 0 2,000,000       2,000,000      
Other non-current liabilities 190,000,000 [1] 171,000,000       112,000,000 [1]      
Total non-current liabilities 695,000,000 1,130,000,000       123,000,000      
Common shares of par value US$0.01 per share: 375,000,000 shares authorized and 49,999,998 issued at December 31, 2022 (Successor) 0 0 $ 0 $ 10,000,000   10,000,000 $ 10,000,000   10,000,000
Additional paid in capital 1,499,000,000 1,499,000,000       3,504,000,000      
Accumulated other comprehensive income/(loss) 2,000,000         (15,000,000)      
Retained earnings/(loss) 201,000,000         (7,215,000,000)      
Total equity/(deficit) 1,702,000,000 1,499,000,000 1,499,000,000     (3,716,000,000)   (3,140,000,000) 1,650,000,000
Total liabilities and equity 2,801,000,000 2,979,000,000       3,897,000,000      
Fair value                  
Fresh-Start Adjustments [Line Items]                  
Drilling units   1,882,000,000              
Continuing operations | Fair value                  
Fresh-Start Adjustments [Line Items]                  
Drilling units   1,575,000,000              
Discontinued operations | Fair value                  
Fresh-Start Adjustments [Line Items]                  
Drilling units   307,000,000              
Additional paid in capital                  
Fresh-Start Adjustments [Line Items]                  
Total equity/(deficit) $ 1,499,000,000 1,499,000,000 1,499,000,000     3,504,000,000   $ 3,504,000,000 $ 3,496,000,000
Predecessor                  
Fresh-Start Adjustments [Line Items]                  
Cash and cash equivalents     262,000,000            
Current restricted cash     135,000,000            
Accounts receivable, net     169,000,000            
Amount due from related parties, net     42,000,000            
Assets held for sale - current     63,000,000            
Other current assets     194,000,000            
Total current assets     865,000,000            
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022     81,000,000            
Drilling units     1,434,000,000            
Restricted cash     69,000,000            
Deferred tax assets     8,000,000            
Equipment     11,000,000            
Assets held for sale - non-current     345,000,000            
Other non-current assets     13,000,000            
Total non-current assets     1,961,000,000            
Total assets     2,826,000,000            
Trade accounts payable     53,000,000            
Liabilities associated with assets held for sale - current     64,000,000            
Other current liabilities     164,000,000            
Total current liabilities     281,000,000            
Liabilities subject to compromise     6,119,000,000     6,117,000,000      
Liabilities subject to compromise associated with assets held for sale     118,000,000     118,000,000      
Deferred tax liabilities     7,000,000            
Liabilities associated with assets held for sale - non-current     2,000,000            
Other non-current liabilities     108,000,000            
Total non-current liabilities     117,000,000            
Common shares of par value US$0.01 per share: 375,000,000 shares authorized and 49,999,998 issued at December 31, 2022 (Successor)     10,000,000            
Additional paid in capital     3,504,000,000            
Accumulated other comprehensive income/(loss)     (1,000,000)            
Retained earnings/(loss)     (7,322,000,000)            
Total equity/(deficit)     (3,809,000,000)            
Total liabilities and equity     2,826,000,000            
Predecessor | Additional paid in capital                  
Fresh-Start Adjustments [Line Items]                  
Total equity/(deficit)           $ 3,504,000,000      
Reorganization Adjustments                  
Fresh-Start Adjustments [Line Items]                  
Cash and cash equivalents     74,000,000            
Current restricted cash     (50,000,000)            
Other current assets     (17,000,000)            
Total current assets     7,000,000            
Drilling units     (175,000,000)            
Total non-current assets     (175,000,000)            
Total assets     (168,000,000)            
Other current liabilities     52,000,000            
Total current liabilities     52,000,000            
Liabilities subject to compromise     (6,119,000,000)            
Liabilities subject to compromise associated with assets held for sale     (118,000,000)            
Long-term debt     951,000,000            
Total non-current liabilities     951,000,000            
Common shares of par value US$0.01 per share: 375,000,000 shares authorized and 49,999,998 issued at December 31, 2022 (Successor)     (10,000,000)            
Additional paid in capital   1,499,000,000 (3,504,000,000)            
Accumulated other comprehensive income/(loss)     1,000,000            
Retained earnings/(loss)     7,080,000,000            
Total equity/(deficit)   $ 1,499,000,000 5,066,000,000            
Total liabilities and equity     (168,000,000)            
Fresh Start Adjustments                  
Fresh-Start Adjustments [Line Items]                  
Assets held for sale - current     11,000,000            
Other current assets     20,000,000            
Total current assets     31,000,000            
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022     (17,000,000)            
Drilling units     279,000,000            
Deferred tax assets     1,000,000            
Equipment     (2,000,000)            
Assets held for sale - non-current     (34,000,000)            
Other non-current assets     26,000,000            
Total non-current assets     290,000,000            
Total assets     321,000,000            
Other current liabilities     17,000,000            
Total current liabilities     17,000,000            
Deferred tax liabilities     (1,000,000)            
Other non-current liabilities     63,000,000            
Total non-current liabilities     62,000,000            
Retained earnings/(loss)     242,000,000            
Total equity/(deficit)     242,000,000            
Total liabilities and equity     321,000,000            
Fresh Start Adjustments | Continuing operations                  
Fresh-Start Adjustments [Line Items]                  
Drilling units     316,000,000            
Liabilities subject to compromise     6,119,000,000            
Retained earnings/(loss)     266,000,000            
Fresh Start Adjustments | Discontinued operations                  
Fresh-Start Adjustments [Line Items]                  
Drilling units     (37,000,000)            
Liabilities subject to compromise     118,000,000            
Retained earnings/(loss)     $ (24,000,000)            
[1] Includes $17 million fair value adjustment of West Gemini off-market lease obligation.
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reorganization, Chapter 11 [Line Items]          
Proceeds from debt   $ 175 $ 0 $ 0 $ 0
Reorganization Adjustments          
Reorganization, Chapter 11 [Line Items]          
Settlement of the Prepetition Credit Agreement $ (683)        
Payment of the AOD cash out option (116)        
Payment of success-based advisor fees (28)        
Payment of the arrangement & financing fee for the Term Loan Facility (30)        
Transfer of cash to restricted cash for the professional fee escrow account funding (2)        
Change in cash and cash equivalents 74        
Reorganization Adjustments | Term Loan          
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        
v3.23.1
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)
v3.23.1
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
v3.23.1
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
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Liabilities Subject to Compromise (Details) - USD ($)
 2 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Reorganization, Chapter 11 [Line Items]        
Accounts payable and other liabilities     $ 0  
Accrued interest expense     4,000,000 $ 0
Amounts due to SFL Corporation under leases for the West Taurus and West Linus     9,000,000 35,000,000
Liabilities subject to compromise     $ 0 6,117,000,000
Issuance of Successor common stock $ 0 $ (1,495,000,000)    
Predecessor        
Reorganization, Chapter 11 [Line Items]        
Accounts payable and other liabilities       36,000,000
Liabilities subject to compromise 6,119,000,000 6,119,000,000   $ 6,117,000,000
Predecessor | Aggregate Continuing And Discontinued Operations        
Reorganization, Chapter 11 [Line Items]        
Senior under-secured external debt 5,662,000,000 5,662,000,000    
Accounts payable and other liabilities 35,000,000 35,000,000    
Accrued interest expense 34,000,000 34,000,000    
Amounts due to SFL Corporation under leases for the West Taurus and West Linus 506,000,000 506,000,000    
Liabilities subject to compromise 6,237,000,000 6,237,000,000    
Fresh Start Adjustments | Continuing operations        
Reorganization, Chapter 11 [Line Items]        
Liabilities subject to compromise 6,119,000,000 6,119,000,000    
Fresh Start Adjustments | Discontinued operations        
Reorganization, Chapter 11 [Line Items]        
Liabilities subject to compromise 118,000,000 118,000,000    
Reorganization Adjustments        
Reorganization, Chapter 11 [Line Items]        
Liabilities subject to compromise (6,119,000,000) $ (6,119,000,000)    
Payment of the AOD cash out option (116,000,000)      
Premium associated with the Term Loan Facility (9,000,000)      
Payment of the arrangement & financing fee for the Term Loan Facility (30,000,000)      
Payment of the rig sale proceeds (45,000,000)      
Amounts due to Prepetition Credit agreement claims for sold rig proceeds not yet paid (27,000,000)      
Derecognition of West Linus rig and return of cash collateral (182,000,000)      
Reversal of the release of certain general unsecured operating accruals (35,000,000)      
Pre-tax gain on settlement of liabilities subject to compromise 3,581,000,000      
Reorganization Adjustments | Equity Commitment Premium        
Reorganization, Chapter 11 [Line Items]        
Issuance of Successor common stock (64,000,000)      
Reorganization Adjustments | Holders of Prepetition Credit Agreement Claims        
Reorganization, Chapter 11 [Line Items]        
Issuance of Successor common stock (1,244,000,000)      
Reorganization Adjustments | Allocation to new money lenders - holders of subscription rights        
Reorganization, Chapter 11 [Line Items]        
Issuance of Successor common stock (187,000,000)      
Reorganization Adjustments | New second lien facility        
Reorganization, Chapter 11 [Line Items]        
Issuance of the New Second Lien Facility $ (717,000,000)      
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Long-Term Debt (Details) - Reorganization Adjustments
$ in Millions
Feb. 22, 2022
USD ($)
Reorganization, Chapter 11 [Line Items]  
Record the exit fee on the Term Loan Facility and New Second Lien Facility $ 43
Change in long-term debt 951
Term Loan  
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
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Retained Loss (Details) - USD ($)
 2 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Reorganization, Chapter 11 [Line Items]    
Cancellation of Predecessor equity $ (10,000,000) $ 0
Issuance of Successor common stock 0 (1,495,000,000)
Retained Earnings    
Reorganization, Chapter 11 [Line Items]    
Cancellation of Predecessor equity 3,513,000,000 3,513,000,000
Issuance of Successor common stock (4,000,000) $ 4,000,000
Reorganization Adjustments    
Reorganization, Chapter 11 [Line Items]    
Pre-tax gain on settlement of liabilities subject to compromise 3,581,000,000  
Reversal of the release of certain general unsecured operating accruals 35,000,000  
Payment of success-based advisor fees (28,000,000)  
Expense of Predecessor Directors & Officers insurance policy (17,000,000)  
Impact to net income 3,571,000,000  
Net impact to retained loss $ 7,080,000,000  
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Additional Paid-In Capital (Details) - USD ($)
 2 Months Ended
Feb. 22, 2022
Feb. 22, 2022
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock $ 0 $ 1,495,000,000          
Successor additional paid-in capital 1,499,000,000 1,499,000,000 $ 1,702,000,000 $ 1,499,000,000 $ (3,716,000,000) $ (3,140,000,000) $ 1,650,000,000
Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Successor additional paid-in capital 5,066,000,000 5,066,000,000   1,499,000,000      
Holders of Prepetition Credit Agreement Claims | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock 1,244,000,000            
Additional paid in capital              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock   1,499,000,000          
Successor additional paid-in capital 1,499,000,000 $ 1,499,000,000 $ 1,499,000,000 $ 1,499,000,000 $ 3,504,000,000 $ 3,504,000,000 $ 3,496,000,000
Additional paid in capital | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Fair value of the conversion option on the Convertible Bond 39,000,000            
Additional paid in capital | Holders of Prepetition Credit Agreement Claims | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock 1,456,000,000            
Additional paid in capital | Predecessor Equity Holders | Reorganization Adjustments              
Reorganization, Chapter 11 [Line Items]              
Issuance of Successor common stock $ 4,000,000            
v3.23.1
Fresh Start Accounting - Reorganization Adjustments, Fresh Start Adjustments (Details) - USD ($)
$ in Millions
Feb. 22, 2022
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Fresh-Start Adjustments [Line Items]        
Drilling units   $ 1,668 $ 1,575 $ 1,431
Retained earnings/(loss)   $ 201   $ (7,215)
Decrease deferred tax liabilities $ 1      
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/(loss) 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/(loss) 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/(loss) (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      
v3.23.1
Current expected credit losses - Allowance for Credit Losses and Credit Loss Expense (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 10 Months Ended 12 Months Ended
Dec. 31, 2021
Apr. 30, 2021
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Beginning balance     $ 1 $ 2 $ 153  
Credit loss expense     1 (1) (34) $ (144)
Write-off         (186)  
Ending balance $ 1   2 1 1 153
Management contract expenses            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Credit loss expense     (1) 1 36 142
Other financial items            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Credit loss expense     0 0 (2) 2
Allowance for credit losses - other current assets            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Beginning balance     0 0 3  
Credit loss expense     0 0 0  
Write-off         (3)  
Ending balance 0   0 0 0 3
Allowance for credit losses - related party ST            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Beginning balance     1 2 148  
Credit loss expense     1 (1) (36)  
Write-off         (183)  
Ending balance 1   2 1 1 148
Allowance for credit losses related party LT            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Beginning balance     0 0 2  
Credit loss expense     0 0 2  
Write-off         0  
Ending balance 0   $ 0 $ 0 $ 0 $ 2
Trade receivables            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Write-off (129) $ (54)        
Reimbursement receivable            
Accounts Receivable, Allowance for Credit Loss [Roll Forward]            
Write-off $ (3)          
v3.23.1
Current expected credit losses - Allowance for Credit Losses and Credit Loss Expense- Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Accounts receivable, allowance for credit loss $ 1 $ 2 $ 2 $ 1 $ 153
Allowance for credit losses - related party ST          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Accounts receivable, allowance for credit loss $ 1 $ 2 $ 2 $ 1 $ 148
v3.23.1
Segment information - Results by Segment (Details)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Feb. 23, 2022
USD ($)
Jan. 20, 2022
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]                
Number of reportable segments | segment     3          
Total operating revenues $ 169 $ 843   $ 907 $ 961      
Depreciation and amortization 17 135   127 319      
Impairment of drilling units and intangible assets 0 0   152 4,108      
Operating profit/(loss) 37 35   (156) (4,481)      
Total financial items and other 3,704 (98)   (416) 50      
(Loss)/income from continuing operations before income taxes 3,741 (63)   (572) (4,431)      
Drilling units   1,668 $ 1,668 1,431   $ 1,575    
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022   84 84 27   64 $ (152)  
Assets held for sale   0 0 1,492        
Cash and restricted cash 490 [1] 598 [1] 598 [1] 516 [1] 653 [1] 490   $ 1,205
Other assets   451 451 431        
Total assets   2,801 2,801 3,897   $ 2,979    
Capital expenditures 20 214   84 137      
Harsh environment                
Segment Reporting Information [Line Items]                
Impairment of drilling units and intangible assets 0 0   152 419      
Drilling units   312 312 709        
Capital expenditures 2 14   30 26      
Harsh environment | Operating Segments                
Segment Reporting Information [Line Items]                
Total operating revenues 78 331   495 526      
Depreciation and amortization 7 46   73 94      
Operating profit/(loss) 16 16   (138) (396)      
Floaters                
Segment Reporting Information [Line Items]                
Impairment of drilling units and intangible assets 0 0   0 3,555      
Drilling units   1,198 1,198 524        
Capital expenditures 18 200   35 110      
Floaters | Operating Segments                
Segment Reporting Information [Line Items]                
Total operating revenues 85 463   363 358      
Depreciation and amortization 6 75   37 176      
Operating profit/(loss) 9 20   (21) (3,781)      
Jackup rigs                
Segment Reporting Information [Line Items]                
Impairment of drilling units and intangible assets 0 0   0 86      
Drilling units   158 $ 158 198        
Capital expenditures 0 0   19 1      
Jackup rigs | Operating Segments                
Segment Reporting Information [Line Items]                
Total operating revenues 6 47   38 59      
Depreciation and amortization 4 14   16 20      
Operating profit/(loss) 9 9   17 (86)      
Other | Other                
Segment Reporting Information [Line Items]                
Total operating revenues 0 2   11 18      
Depreciation and amortization 0 0   1 29      
Impairment of drilling units and intangible assets 0 0   0 48      
Operating profit/(loss) $ 3 $ (10)   $ (14) $ (218)      
[1] Comprised of cash and cash equivalents as at December 31, 2022 (Successor) $480 million (2021: $293 million, 2020: $485 million), restricted cash $44 million (2021: $160 million, 2020: $103 million), and restricted cash included in non-current assets $74 million (2021: $63 million, 2020: $65 million).
v3.23.1
Segment information - Geographic Revenues (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 169 $ 843 $ 907 $ 961
Norway        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 78 231 486 480
Angola        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 43 220 125 89
United States        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 20 146 105 107
Canada        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 0 98 0 0
Brazil        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue 19 95 121 51
Others        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Total revenue $ 9 $ 53 $ 70 $ 234
v3.23.1
Segment information - Geographic Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units $ 1,668 $ 1,575 $ 1,431
Brazil      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 714   169
Norway      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 312   710
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 275   92
Qatar      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units 144   156
Others      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Drilling units $ 223   $ 304
v3.23.1
Segment information - Major Customers (Details)
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue, Major Customer [Line Items]          
Total revenues earned, percentage     0.10 0.10 0.10
Contract revenues | Customer concentration risk          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 100.00% 100.00%   100.00% 100.00%
Contract revenues | Customer concentration risk | Sonadrill | Floaters          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 9.00% 21.00%   0.00% 0.00%
Contract revenues | Customer concentration risk | Equinor | Floaters          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 10.00% 14.00%   15.00% 13.00%
Contract revenues | Customer concentration risk | ConocoPhillips | Harsh environment          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 13.00% 13.00%   18.00% 18.00%
Contract revenues | Customer concentration risk | Var Energi | Harsh environment          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 11.00% 14.00%   0.00% 0.00%
Contract revenues | Customer concentration risk | Lundin | Floaters          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 12.00% 1.00%   13.00% 2.00%
Contract revenues | Customer concentration risk | Northern Ocean | Harsh environment          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 0.00% 0.00%   4.00% 13.00%
Contract revenues | Customer concentration risk | Others          
Revenue, Major Customer [Line Items]          
Concentration risk percentage 45.00% 37.00%   50.00% 54.00%
v3.23.1
Revenue from contracts with customers - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]      
Accounts receivable, net $ 137 $ 169 $ 158
Current contract liabilities (deferred revenues) (19)   (25)
Non-current contract liabilities (deferred revenues) $ (42)   $ (10)
v3.23.1
Revenue from contracts with customers - Significant Changes in Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
 2 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Change In Contract With Customer, Asset And Liability [Roll Forward]      
Contract liabilities, beginning balance $ (35) $ (35) $ (31)
Amortization of revenue that was included in the beginning contract liability balance 16 9 24
Cash received, excluding amounts recognized as revenue   (51) (28)
Contract liabilities, ending balance $ (19) $ (61) $ (35)
v3.23.1
Revenue from contracts with customers - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Deferred revenue, current $ 19 $ 25
Deferred revenue, noncurrent $ 42 $ 10
v3.23.1
Other revenues (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Jul. 01, 2022
Variable Interest Entity [Line Items]          
Leasing revenues $ 4 $ 24 $ 26 $ 19  
Inventory sales 0 9 0 0  
Early termination fees 0 0 6 11  
Other 1 6 0 0  
Sonadrill          
Variable Interest Entity [Line Items]          
Investment increase, joint ventures         $ 21
Other revenues          
Variable Interest Entity [Line Items]          
Total other revenues [1] $ 5 $ 39 $ 32 $ 30  
[1] Includes revenue received from related parties of $216 million, $19 million, $189 million and $305 million, and costs paid to related parties of nil, $3 million, $70 million, and $12 million for the periods February 23, 2022 through December 31, 2022, January 1, 2022 through February 22, 2022, and the years ended December 31, 2021, and 2020 respectively. Refer to Note 27 - "Related party transactions" for further details.
v3.23.1
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 ($)
Dec. 31, 2021
USD ($)
rig
Dec. 31, 2020
USD ($)
rig
Other Income and Expenses [Abstract]          
Impairment of long lived assets $ (152) $ 0 $ 0 $ (152) $ (4,087)
Loss on impairment of intangibles   0 0 0 (21)
Gain on disposals   2 1 47 15
Other operating income [1]   0 0 54 9
Total other operating items   $ 2 $ 1 $ (51) $ (4,084)
Number of rigs disposed of | rig       7 1
[1] Includes revenue received from related parties of $216 million, $19 million, $189 million and $305 million, and costs paid to related parties of nil, $3 million, $70 million, and $12 million for the periods February 23, 2022 through December 31, 2022, January 1, 2022 through February 22, 2022, and the years ended December 31, 2021, and 2020 respectively. Refer to Note 27 - "Related party transactions" for further details.
v3.23.1
Other operating items - Other Operating Income (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Pre petition liability write off $ 0 $ 0   $ 27 $ 0
War risk insurance rebate 0 0 $ 22 22 0
Loss of hire insurance settlement 0 0   2 9
Other 0 0   3 0
Other operating income [1] $ 0 $ 0   54 $ 9
West Bollsta          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Pre petition liability write off       19  
Aquadrill          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Pre petition liability write off       $ 8  
[1] Includes revenue received from related parties of $216 million, $19 million, $189 million and $305 million, and costs paid to related parties of nil, $3 million, $70 million, and $12 million for the periods February 23, 2022 through December 31, 2022, January 1, 2022 through February 22, 2022, and the years ended December 31, 2021, and 2020 respectively. Refer to Note 27 - "Related party transactions" for further details.
v3.23.1
Interest expense - Schedule of Interest expense (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest Expense [Abstract]        
Cash interest on debt facilities $ 0 $ (95) $ (25) $ (256)
Interest on SFL leases (7) 0 (84) (12)
Unwind of discount debt 0 0 0 (44)
Write off of discount on debt 0 0 0 (86)
Guarantee and commission fees 0 (3) 0 0
Interest expense $ (7) $ (98) $ (109) $ (398)
v3.23.1
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, 2021
Dec. 31, 2020
Debt Instrument [Line Items]        
Cash and payment-in-kind interest $ 0 $ (95) $ (25) $ (256)
Pre-filing senior credit facilities        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 0 (25) (229)
Pre-filing debt of consolidated variable interest entities        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 0 0 (27)
Post-emergence first lien senior secured        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 (14) 0 0
Post-emergence second lien senior secured        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest 0 (78) 0 0
Post-emergence unsecured senior convertible bond        
Debt Instrument [Line Items]        
Cash and payment-in-kind interest $ 0 $ (3) $ 0 $ 0
v3.23.1
Interest expense - Narrative (Details) - USD ($)
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 23, 2022
Jul. 02, 2018
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Nov. 30, 2022
Oct. 31, 2022
Feb. 28, 2022
Debt Instrument [Line Items]                    
Long-term debt $ 951,000,000     $ 518,000,000 $ 518,000,000 $ 0        
Write off of discount on debt     $ 0 $ 0   $ 0 $ 86,000,000      
Secured Credit Facilities | Secured debt | LIBOR                    
Debt Instrument [Line Items]                    
Increase in basis spread on variable interest rate   1.00%                
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 | Line of credit | Revolving credit facility                    
Debt Instrument [Line Items]                    
Long-term debt $ 125,000,000                  
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 175,000,000                  
Second Lien Senior Secured (Level 3) | Secured debt                    
Debt Instrument [Line Items]                    
Long-term debt $ 683,000,000     $ 29,000,000 $ 29,000,000     $ 250,000,000 $ 192,000,000  
Basis spread on variable rate (as a percent) 12.50%                  
Second Lien Senior Secured (Level 3) | Secured debt | Cash                    
Debt Instrument [Line Items]                    
Basis spread on variable rate (as a percent) 5.00%                  
Second Lien Senior Secured (Level 3) | Secured debt | Pay-If-You-Can                    
Debt Instrument [Line Items]                    
Basis spread on variable rate (as a percent) 7.50%                  
Unsecured Convertible Bond - debt component (Level 3) | Unsecured notes                    
Debt Instrument [Line Items]                    
Long-term debt $ 50,000,000                  
Basis spread on variable rate (as a percent) 6.00%                  
Hermen convertible bond | Convertible debt                    
Debt Instrument [Line Items]                    
Conversion rate (in shares)         52.6316          
Derivative, notional amount                   $ 1,000
v3.23.1
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 ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]            
Impairment of long lived assets   $ 0 $ 0   $ 152 $ 4,108
Loss on impairment of long-lived assets $ 152 $ 0 $ 0   $ 152 $ 4,087
Secured Credit Facilities | Discount rate | Discounted cash flow            
Impaired Long-Lived Assets Held and Used [Line Items]            
Fair value, cost of debt percent     0.118 0.118 0.170  
Drilling units            
Impaired Long-Lived Assets Held and Used [Line Items]            
Impairment of long lived assets       $ 4,100    
Loss on impairment of long-lived assets         $ 152  
v3.23.1
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, 2021
Dec. 31, 2020
Current tax expense/(benefit):        
Bermuda $ 0 $ 0 $ 0 $ 0
Foreign 3 15 2 6
Deferred tax expense/(benefit):        
Bermuda 0 0 0 0
Foreign (1) (5) (2) (7)
Deferred taxes acquired during the year 0 0 0 0
Tax related to internal sale of assets in subsidiary, amortized for group purposes 0 0 0 0
Total tax expense/(benefit) $ 2 $ 10 $ 0 $ (1)
Effective tax rate 0.00% 16.00% 0.00% 0.00%
v3.23.1
Taxation - Additional Information (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Feb. 23, 2022
Dec. 31, 2019
Related Party Transaction [Line Items]              
Effective tax rate 0.00% 16.00%   0.00% 0.00%    
Tax benefit, CARES Act     $ 0 $ 2      
Deferred tax assets, net operating loss carry forwards   $ 296 296 320      
Deferred tax assets not subject to expiration   235 235 234      
Deferred tax assets subject to expiration   61 61 86      
Deferred tax liabilities, intangibles   1 1 1      
Unrecognized tax benefits $ 84 85 85 83 $ 82 $ 84 $ 89
Accrued interest and penalties   21 21 19      
Interest and penalties expense (benefit)     2 1      
Unrecognized tax benefits that would have a favorable impact on effective tax rate   85 85        
Valuation allowance   413 413 403      
Net operating loss carryforward              
Related Party Transaction [Line Items]              
Valuation allowance   $ 285 285 $ 320      
Secretariat of the Federal Revenue Bureau of Brazil              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     114        
Norwegian Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     15        
Nigerian Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     171        
Kuwaiti Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     12        
Mexican Tax Authority              
Related Party Transaction [Line Items]              
Income tax examination, estimate of possible loss     $ 82        
v3.23.1
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, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]        
Effect of change on unrecognized tax benefits $ 0 $ (5) $ 2 $ (8)
Effect of unremitted earnings of subsidiaries (1) 1 0 (2)
Effect of taxable income in various countries 3 14 (2) 9
Total tax expense/(benefit) $ 2 $ 10 $ 0 $ (1)
v3.23.1
Taxation - Deferred Income Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred Tax Assets [Abstract]    
Pensions and stock options $ 1 $ 3
Provisions 27 30
Property, plant and equipment 92 51
Net operating losses carried forward 296 320
Other 12 9
Gross deferred tax assets 428 413
Valuation allowance (413) (403)
Deferred tax assets 15 10
Deferred Tax Liability [Abstract]    
Unremitted Earnings of Subsidiaries 8 8
Intangibles 1 1
Gross deferred tax liabilities 9 9
Net deferred tax asset/(liability) $ 6 $ 1
v3.23.1
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, 2021
Dec. 31, 2020
Changes to liabilities related to unrecognized tax benefits, excluding interest and penalties [Roll Forward]        
Balance at the beginning of the period $ 83 $ 84 $ 82 $ 89
Increases as a result of positions taken in prior periods 1 3 2 1
Increases as a result of positions taken during the current period 0 0 2 0
Decreases as a result of positions taken in prior periods 0 0 (1) (4)
Decreases due to settlements 0 0 (1) (1)
Decreases as a result of a lapse of the applicable statute of limitations 0 (2) (1) (3)
Balance at the end of the period $ 84 $ 85 $ 83 $ 82
v3.23.1
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, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]        
Net loss from continuing operations $ 3,739 $ (73) $ (572) $ (4,430)
Profit/(loss) from discontinued operations (33) 274 (15) (233)
Net profit/(loss) available to stockholders 3,706 201 (587) (4,663)
Effect of dilution - interest on unsecured senior convertible bond (Note 11) 0 3 0 0
Diluted net profit/(loss) available to stockholders $ 3,706 $ 204 $ (587) $ (4,663)
Basic earnings/(loss) per share:        
Weighted average number of common shares outstanding (in shares) 100 50 100 100
Diluted earnings/(loss) per share:        
Effect of dilution (in shares) 0 3 0 0
Weighted average number of common shares outstanding adjusted for the effects of dilution (in shares) 100 53 100 100
Basic loss per share from continuing operations (USD per share) $ 37.25 $ (1.46) $ (5.70) $ (44.11)
Diluted loss per share from continuing operations (usd per share) 37.25 (1.46) (5.70) (44.11)
Basic loss per share (usd per share) 36.92 4.02 (5.85) (46.43)
Diluted loss per share (usd per share) $ 36.92 $ 3.88 $ (5.85) $ (46.43)
v3.23.1
Restricted cash (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Dec. 31, 2020
Restricted Cash [Line Items]        
Total restricted cash $ 118   $ 223  
Current restricted cash 44 $ 85 160 $ 103
Non-current restricted cash 74 $ 69 63 $ 65
Demand deposit pledged as collateral for tax related guarantee        
Restricted Cash [Line Items]        
Total restricted cash 74   63  
Cash held in escrow        
Restricted Cash [Line Items]        
Total restricted cash 23   23  
Accounts pledged as collateral for performance bonds and similar guarantees        
Restricted Cash [Line Items]        
Total restricted cash 10   28  
Accounts pledged as collateral for guarantees related to rig recycling        
Restricted Cash [Line Items]        
Total restricted cash 0   14  
Proceeds from rig sales        
Restricted Cash [Line Items]        
Total restricted cash 0   47  
Accounts pledged as collateral for SFL Leases        
Restricted Cash [Line Items]        
Total restricted cash 0   37  
Other        
Restricted Cash [Line Items]        
Total restricted cash $ 11   $ 11  
v3.23.1
Other assets - Schedule of other assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Other Assets [Abstract]    
Deferred contract costs $ 111 $ 15
Taxes receivable 42 48
Favorable drilling and management services contracts 42 9
Prepaid expenses $ 37 $ 51
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other current assets, Other Assets, Noncurrent Other current assets, Other Assets, Noncurrent
Right of use asset $ 9 $ 24
Reimbursable amounts due from customers 8 13
Interest rate cap (Level 2) 5 0
Restructuring backstop commitment fee 0 20
Other 8 44
Total other assets $ 262 $ 224
v3.23.1
Other assets - Balance Sheet Presentation (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Other current assets $ 169 $ 197 $ 197
Other non-current assets 93 $ 39 27
Total other assets $ 262   $ 224
v3.23.1
Other assets - Roll forward (Details) - USD ($)
$ in Millions
 10 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2020
Other Assets [Line Items]          
Gross carrying amount, beginning of the period $ 96 $ 266      
Accumulated amortization, beginning of the period 0 (256)      
Net carrying amount 42 9 $ 96 $ 96 $ 10
Gross carrying amount, end of the period 96 266      
Accumulated amortization, end of the period (54) (257)      
Predecessor          
Other Assets [Line Items]          
Gross carrying amount, beginning of the period 266        
Accumulated amortization, beginning of the period (257)        
Net carrying amount       9  
Fresh Start Adjustments          
Other Assets [Line Items]          
Gross carrying amount, beginning of the period (170)        
Accumulated amortization, beginning of the period 257        
Net carrying amount       $ 87  
Other assets          
Other Assets [Line Items]          
Amortization $ (54) $ (1)      
v3.23.1
Other assets - Narrative (Details)
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Weighted average remaining amortization period 5 months
v3.23.1
Investment in associated companies - Ownership Percentage (Details)
$ in Millions
 1 Months Ended 2 Months Ended 9 Months Ended 10 Months Ended 12 Months Ended
Jan. 20, 2022
USD ($)
Jan. 31, 2022
USD ($)
Feb. 22, 2022
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
rig
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jul. 01, 2022
USD ($)
Feb. 28, 2022
rig
Jan. 01, 2022
Nov. 30, 2021
Schedule of Equity Method Investments [Line Items]                      
Income (loss) from equity method investments | $ $ (112)   $ (2)   $ (2) $ 3 $ 0        
Number of drillships | rig         2            
Amounts due to SFL Corporation under leases for the West Taurus and West Linus | $         $ 9 $ 35          
PES                      
Schedule of Equity Method Investments [Line Items]                      
Ownership interest prior to disposal (in percent)   65.00%               100.00%  
Income (loss) from equity method investments | $       $ 8              
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]                      
Number of drillships leased | rig         3            
PES                      
Schedule of Equity Method Investments [Line Items]                      
Ownership interest ( in percent)   35.00%   35.00% 35.00% 100.00%         100.00%
Income (loss) from equity method investments | $     $ (3) $ 8 $ (8) $ 0 $ 0        
Realized gain (loss) on disposal | $   $ 112                  
Gulfdrill                      
Schedule of Equity Method Investments [Line Items]                      
Ownership interest ( in percent)     50.00%   50.00% 50.00% 50.00%        
Income (loss) from equity method investments | $     $ 0   $ 4 $ (2) $ 2        
Number of premium jack-ups | rig         5            
Gulfdrill | Seadrill Limited                      
Schedule of Equity Method Investments [Line Items]                      
Number of leased rigs | rig         3            
Gulfdrill | Third party                      
Schedule of Equity Method Investments [Line Items]                      
Number of leased rigs | rig         2            
Gulfdrill | Joint venture partner                      
Schedule of Equity Method Investments [Line Items]                      
Ownership interest ( in percent)         50.00% 50.00%          
Sonadrill                      
Schedule of Equity Method Investments [Line Items]                      
Ownership interest ( in percent)     50.00%   50.00% 50.00% 50.00%        
Income (loss) from equity method investments | $     $ 1   $ 2 $ 5 $ (2)        
Number of drillships | rig         2       3    
Number of drillships managed | rig         3            
Amounts due to SFL Corporation under leases for the West Taurus and West Linus | $         $ 21     $ 21      
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 | rig         2            
v3.23.1
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, 2021
Dec. 31, 2020
Feb. 23, 2022
Jan. 31, 2022
Nov. 30, 2021
Sep. 01, 2021
Schedule of Equity Method Investments [Line Items]                    
Income (loss) from equity method investments $ (112) $ (2)   $ (2) $ 3 $ 0        
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 $ (152)     84 27   $ 64      
PES                    
Schedule of Equity Method Investments [Line Items]                    
Income (loss) from equity method investments   (3) $ 8 $ (8) $ 0 0        
Ownership interest ( in percent)     35.00% 35.00% 100.00%     35.00% 100.00%  
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022   39   $ 31 $ 0          
SeaMex                    
Schedule of Equity Method Investments [Line Items]                    
Ownership interest ( in percent)                   50.00%
Sonadrill                    
Schedule of Equity Method Investments [Line Items]                    
Income (loss) from equity method investments   $ 1   $ 2 $ 5 $ (2)        
Ownership interest ( in percent)   50.00%   50.00% 50.00% 50.00%        
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022       $ 49 $ 27          
PES                    
Schedule of Equity Method Investments [Line Items]                    
Income (loss) from equity method investments     $ 8              
v3.23.1
Investment in associated companies - Share in Results from Associated Companies (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, 2021
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]            
Income (loss) from equity method investments $ (112) $ (2)   $ (2) $ 3 $ 0
PES            
Schedule of Equity Method Investments [Line Items]            
Income (loss) from equity method investments   (3) $ 8 (8) 0 0
Sonadrill            
Schedule of Equity Method Investments [Line Items]            
Income (loss) from equity method investments   1   2 5 (2)
Gulfdrill            
Schedule of Equity Method Investments [Line Items]            
Income (loss) from equity method investments   $ 0   $ 4 $ (2) $ 2
v3.23.1
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, 2021
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]          
Operating revenues   $ 169 $ 843 $ 907 $ 961
Net operating income/(loss)   37 35 (156) (4,481)
Net income/(loss)   3,706 201 (587) (4,659)
Income (loss) from equity method investments $ (112) $ (2) $ (2) $ 3 $ 0
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 $ 5 $ (2)
Basis difference amortization   0 (3) 0 0
Income (loss) from equity method investments   $ 1 $ 2 $ 5 $ (2)
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 $ (2) $ 2
Income (loss) from equity method investments   0 4 (2) 2
Sonadrill          
Schedule of Equity Method Investments [Line Items]          
Operating revenues   14 200 94 56
Net operating income/(loss)   2 21 18 (2)
Net income/(loss)   2 10 11 (5)
Gulfdrill          
Schedule of Equity Method Investments [Line Items]          
Operating revenues   28 167 142 44
Net operating income/(loss)   2 14 (4) 6
Net income/(loss)   $ 1 $ 9 $ (4) $ 4
v3.23.1
Investment in associated companies - Book Value (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 20, 2022
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]          
Investment in associated companies $ 84 $ 64   $ (152) $ 27
PES          
Schedule of Equity Method Investments [Line Items]          
Investment in associated companies 31   $ 39   0
Sonadrill          
Schedule of Equity Method Investments [Line Items]          
Investment in associated companies 49       27
Gulfdrill          
Schedule of Equity Method Investments [Line Items]          
Investment in associated companies $ 4       $ 0
v3.23.1
Investment in associated companies - Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Jul. 01, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 20, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]              
Current assets $ 857   $ 903     $ 1,981  
Non-current assets 1,944   2,076     1,916  
Current liabilities (404)   (350)     (1,255)  
Non-current liabilities (695)   (1,130)     (123)  
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 84   $ 64   $ (152) 27  
Lease liabilities $ 9         $ 35  
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 $ 33         $ 27  
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 49         27  
Basis difference net of amortization 16         $ 0  
Lease liabilities $ 21 $ 21          
Gulfdrill              
Schedule of Equity Method Investments [Line Items]              
Ownership interest ( in percent) 50.00%     50.00%   50.00% 50.00%
Carrying value of Paratus Energy Services Ltd equity at January 20, 2022 $ 4         $ 0  
Sonadrill              
Schedule of Equity Method Investments [Line Items]              
Current assets 105         72  
Non-current assets 1         0  
Current liabilities (40)         (18)  
Non-current liabilities (1)         0  
Net Assets 65         54  
Gulfdrill              
Schedule of Equity Method Investments [Line Items]              
Current assets 110         120  
Non-current assets 80         173  
Current liabilities (129)         (182)  
Non-current liabilities (54)         (113)  
Net Assets $ 7         $ (2)  
v3.23.1
Drilling units (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 23, 2022
Jun. 30, 2021
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cost            
Impairment   $ (152) $ 0 $ 0 $ (152) $ (4,087)
Accumulated depreciation            
Depreciation     (17) (135) (127) (319)
Drilling units            
Cost            
Opening balance $ 1,575   2,241 1,575 2,673  
Additions     20 210 84  
Impairment         (152)  
Disposals     (23) (24) (364)  
Derecognition of West Linus (211)          
Closing balance 1,575   1,575 1,761 2,241 2,673
Accumulated depreciation            
Opening balance 0   (810) 0 (918)  
Depreciation     (17) (93) (119)  
Disposal of West Venture     23 0 227  
Derecognition of West Linus 36          
Closing balance 0   0 (93) (810) (918)
Disposal, net     0 (24) (137)  
Derecognition of West Linus (175)          
Net book value (1,575)   (1,575) (1,668) (1,431) $ (1,755)
Drilling units | Fresh Start Adjustments            
Cost            
Opening balance 452     452    
Closing balance     452      
Accumulated depreciation            
Opening balance $ (768)     $ (768)    
Closing balance     (768)      
Net book value     316      
Drilling units | Predecessor            
Cost            
Opening balance     2,238      
Closing balance         2,238  
Accumulated depreciation            
Opening balance     $ (804)      
Closing balance         (804)  
Net book value         $ (1,434)  
v3.23.1
Equipment (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Feb. 23, 2022
Accumulated depreciation          
Depreciation $ (17) $ (135) $ (127) $ (319)  
Equipment          
Cost          
Opening balance 39 9 39    
Additions   4      
Closing balance 9 13 39 39  
Accumulated depreciation          
Opening balance (28) 0 (20)    
Depreciation   (3) (8)    
Closing balance 0 (3) (28) (20)  
Net book value 9 10 $ 11 $ 19 $ 9
Equipment | Predecessor          
Cost          
Opening balance   39      
Closing balance 39        
Accumulated depreciation          
Opening balance   (28)      
Closing balance (28)        
Net book value 11        
Equipment | Fresh Start Adjustments          
Cost          
Opening balance   (30)      
Closing balance (30)        
Accumulated depreciation          
Opening balance   $ 28      
Closing balance 28        
Net book value $ (2)        
v3.23.1
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Nov. 30, 2022
Oct. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Feb. 23, 2022
Debt Instrument [Line Items]          
Total principal debt     $ 496 $ 5,545  
Exit fee     22 0  
Less: Debt reported as liabilities subject to compromise     0 (5,545)  
Total debt     518 0 $ 951
Debt due within one year     22 0 350
Long-term debt     496 0 179
Secured debt          
Debt Instrument [Line Items]          
Total principal debt     446 5,545  
Unsecured debt          
Debt Instrument [Line Items]          
Total principal debt     50 0  
Secured Credit Facilities | Secured debt          
Debt Instrument [Line Items]          
Total principal debt     0 5,545  
Term Loan | Secured debt          
Debt Instrument [Line Items]          
Total principal debt     175 0  
Exit fee     9 0  
Second Lien Senior Secured (Level 3) | Secured debt          
Debt Instrument [Line Items]          
Total principal debt     271 0  
Exit fee $ 13 $ 10 13 0  
Total debt $ 250 $ 192 29   $ 683
Unsecured Convertible Bond - debt component (Level 3) | Unsecured debt          
Debt Instrument [Line Items]          
Total principal debt     $ 50 $ 0  
v3.23.1
Debt - Narrative (Details)
$ in Millions
 1 Months Ended 3 Months Ended 10 Months Ended 12 Months Ended
Mar. 15, 2023
USD ($)
Feb. 10, 2023
USD ($)
Feb. 23, 2022
USD ($)
Nov. 30, 2022
USD ($)
Oct. 31, 2022
USD ($)
Mar. 31, 2023
payment
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]                  
Long-term debt     $ 951       $ 518 $ 518 $ 0
Total principal debt             496 496 5,545
Exit fee               22 0
Secured debt                  
Debt Instrument [Line Items]                  
Total principal debt             $ 446 446 5,545
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]                  
Maximum borrowing capacity     $ 300            
Super senior secured credit facility due 2026 | Line of credit | Secured debt                  
Debt Instrument [Line Items]                  
Long-term debt     175            
Super senior secured credit facility due 2026 | Line of credit | Revolving credit facility                  
Debt Instrument [Line Items]                  
Long-term debt     125            
Line of credit facility, unused capacity, commitment fee percentage             2.80%    
Pari passu facility | Secured debt                  
Debt Instrument [Line Items]                  
Total principal debt     50            
Term Loan | Secured debt                  
Debt Instrument [Line Items]                  
Total principal debt             $ 175 175 0
Exit fee               9 0
Second Lien Senior Secured (Level 3) | Secured debt                  
Debt Instrument [Line Items]                  
Long-term debt     $ 683 $ 250 $ 192   29 29  
Basis spread on variable rate (as a percent)     12.50%            
Total principal debt             $ 271 271 0
Exit fee       $ 13 $ 10     $ 13 $ 0
Second Lien Senior Secured (Level 3) | Secured debt | Subsequent event                  
Debt Instrument [Line Items]                  
Exit fee $ 2 $ 6              
Number of voluntary payments made | payment           2      
Second Lien Senior Secured (Level 3) | Secured debt | Pay-If-You-Can                  
Debt Instrument [Line Items]                  
Basis spread on variable rate (as a percent)     7.50%            
Second Lien Senior Secured (Level 3) | Secured debt | Cash                  
Debt Instrument [Line Items]                  
Basis spread on variable rate (as a percent)     5.00%            
Unsecured Convertible Bond - debt component (Level 3) | Unsecured notes                  
Debt Instrument [Line Items]                  
Long-term debt     $ 50            
Basis spread on variable rate (as a percent)     6.00%            
v3.23.1
Debt - Debt Maturity (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]  
2023 $ 22
2024 22
2025 22
2026 206
2027 196
2028 and thereafter 50
Total debt principal and exit fee payments 518
Term Loan  
Debt Instrument [Line Items]  
2023 0
2024 0
2025 0
2026 184
2027 0
2028 and thereafter 0
Total debt principal and exit fee payments 184
Second Lien Senior Secured (Level 3)  
Debt Instrument [Line Items]  
2023 22
2024 22
2025 22
2026 22
2027 196
2028 and thereafter 0
Total debt principal and exit fee payments 284
Unsecured Convertible Bond - debt component (Level 3)  
Debt Instrument [Line Items]  
2023 0
2024 0
2025 0
2026 0
2027 0
2028 and thereafter 50
Total debt principal and exit fee payments $ 50
v3.23.1
Other liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]          
Accrued expenses $ 124     $ 78  
Uncertain tax positions 85     83  
Unfavorable drilling contracts 70     6  
Contract liabilities 61 $ 19 $ 19 35 $ 31
Employee withheld taxes, social security and vacation payments 47     43  
Taxes payable $ 29     $ 23  
Operating lease, liability, statement of financial position [Extensible List] Total Other Liabilities     Total Other Liabilities  
Lease liabilities $ 9     $ 35  
Accrued interest expense 4     0  
Other liabilities 67     28  
Total Other Liabilities $ 496     $ 331  
v3.23.1
Other liabilities - Balance sheet presentation (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Dec. 31, 2021
Other Liabilities [Abstract]      
Other current liabilities $ 306 [1] $ 233 $ 219 [1]
Other non-current liabilities 190 [1] $ 171 112 [1]
Total Other Liabilities $ 496   $ 331
[1] Includes $17 million fair value adjustment of West Gemini off-market lease obligation.
v3.23.1
Other liabilities - Movement in Unfavorable Drilling Contracts (Details) - USD ($)
$ in Millions
 10 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Feb. 23, 2022
Feb. 22, 2022
Dec. 31, 2020
Other Liabilities [Line Items]          
Gross carrying amount beginning balance $ 85 $ 66      
Accumulated amortization of unfavorable contracts to be amortized (15) (60)      
Net carrying amount 70 6 $ 85 $ 85 $ 7
Amortization (15) (1)      
Gross carrying amount ending balance 85 $ 66      
Predecessor          
Other Liabilities [Line Items]          
Gross carrying amount beginning balance 66        
Net carrying amount       6  
Fresh Start Adjustments          
Other Liabilities [Line Items]          
Gross carrying amount beginning balance $ 19        
Net carrying amount       $ 79  
v3.23.1
Other Liabilities - Narrative (Details)
 12 Months Ended
Dec. 31, 2022
Other Liabilities Disclosure [Abstract]  
Weighted average remaining amortization period 36 months
v3.23.1
Other liabilities - Unfavorable contracts (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Payables and Accruals [Abstract]  
2023 $ 24
2024 24
2025 19
2026 and thereafter 3
Amortization of unfavorable contracts $ 70
v3.23.1
Leases - Additional Information (Details)
$ in Millions
 12 Months Ended
Jul. 01, 2022
rig
Dec. 31, 2022
USD ($)
rig
Lessor, Lease, Description [Line Items]    
Number of benign environment Jack-up rigs | rig 3  
Number of sale and leaseback rigs | rig 3 3
West Hercules lease liability    
Lessor, Lease, Description [Line Items]    
ROU asset adjustment | $   $ 9
West Linus lease liability    
Lessor, Lease, Description [Line Items]    
ROU asset adjustment | $   $ 13
v3.23.1
Leases - Future Undiscounted Cash Flows and the related operating lease liability recognized in our Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 4  
2024 2  
2025 2  
2026 and thereafter 3  
Total 11 $ 37
Less short term leases 0 0
Less discount (2) (2)
Operating lease liability $ 9 $ 35
Operating lease liability, current, statement of financial position [extensible enumeration] Other current liabilities Other current liabilities
Current $ 3 $ 30
Operating lease, liability, noncurrent, statement of financial position [extensible enumeration] Other non-current liabilities Other non-current liabilities
Non-current $ 6 $ 5
v3.23.1
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, 2021
Dec. 31, 2020
Operating Lease Cost:        
Operating lease cost $ 4 $ 36 $ 42 $ 19
Short-term lease cost 1 3 1 2
Total lease cost 5 39 43 21
Other information:        
Cash paid for lease liabilities- operating cash flows 5 39 41 21
ROU assets obtained in exchange for lease liabilities $ 24 $ 0 $ 24 $ 53
Weighted-average remaining lease term in months 22 months 52 months 19 months 14 months
Weighted-average discount rate 9.00% 10.00% 10.00% 24.00%
v3.23.1
Leases - Operating Leases, Lessor, Future Undiscounted Cash Flows, and Income (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating lease payments receivable  
2023 $ 24
2024 14
2025 4
2026 and thereafter 0
Total $ 42
v3.23.1
Common shares (Details) - USD ($)
 2 Months Ended 12 Months Ended
Feb. 23, 2022
Feb. 22, 2022
Jun. 17, 2020
Feb. 10, 2020
Feb. 22, 2022
Dec. 31, 2020
Dec. 31, 2022
Feb. 21, 2022
Dec. 31, 2021
Dec. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Beginning balance (in shares) 49,999,998 100,384,435     100,384,435 100,234,973        
RSU share issuance (in shares)     149,462 149,462   149,462        
Cancellation of predecessor equity (in shares)   (100,384,435)                
Stock issued during period (in shares) 49,999,998 49,999,998                
Ending balance (in shares) 49,999,998 49,999,998     49,999,998          
Common shares, par value (in usd per share) $ 0.01 $ 0.01     $ 0.01   $ 0.01 $ 0.10 $ 0.10 $ 0.10
RSU shares issuance (usd per share)           $ 0.10        
Cancellation of predecessor equity (usd per share)   0.10                
Issuance of successor common stock (usd per share)   0.01                
Ending balance (usd per share) $ 0.01 $ 0.01     $ 0.01          
Beginning balance $ 0 $ 10,000,000     $ 10,000,000 $ 10,000,000        
Stock issued, restricted stock award, net of forfeitures           $ 0        
Cancellation of Predecessor equity   (10,000,000)     0          
Issuance of Successor common stock   0     1,495,000,000          
Ending balance $ 0 $ 0     $ 0          
v3.23.1
Common shares- Narrative (Details)
 12 Months Ended
Jun. 17, 2020
shares
Feb. 10, 2020
shares
Dec. 31, 2022
rig
Dec. 31, 2020
shares
Equity [Abstract]        
RSU share issuance (in shares) | shares 149,462 149,462   149,462
Number of votes per common share | rig     1  
v3.23.1
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, 2021
Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance $ 1,499 $ (3,716) $ 1,499 $ (3,140) $ 1,650
Other comprehensive (loss)/income   14 2 11 (13)
Ending balance 1,499 1,499 1,702 (3,716) (3,140)
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 (26) (13)
Other comprehensive income from continuing operations   1   0  
Other comprehensive income from discontinued operations   (3)   11  
Recycling of accumulated other comprehensive loss on sale of PES   16      
Reset accumulated other comprehensive loss 1        
Other comprehensive (loss)/income     2    
Ending balance 0 0 2 (15) (26)
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   0  
Other comprehensive income from discontinued operations   0   0  
Recycling of accumulated other comprehensive loss on sale of PES   0      
Reset accumulated other comprehensive loss 1        
Other comprehensive (loss)/income     2    
Ending balance 0 0 2 (2) (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 (28)  
Other comprehensive income from continuing operations   0   0  
Other comprehensive income from discontinued operations   (2)   9  
Recycling of accumulated other comprehensive loss on sale of PES   21      
Reset accumulated other comprehensive loss 0        
Other comprehensive (loss)/income     0    
Ending balance 0 0 0 (19) (28)
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 4  
Other comprehensive income from continuing operations   0   0  
Other comprehensive income from discontinued operations   (1)   2  
Recycling of accumulated other comprehensive loss on sale of PES   (5)      
Reset accumulated other comprehensive loss 0        
Other comprehensive (loss)/income     0    
Ending balance 0 0 0 $ 6 $ 4
Change in debt component on Archer facility | Predecessor          
AOCI Attributable to Parent, Net of Tax [Roll Forward]          
Beginning balance $ 0   $ 0    
Ending balance   $ 0      
v3.23.1
Share based compensation - Expense Summary (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]        
Share-based compensation expense $ 0 $ 0 $ 0 $ 8
v3.23.1
Share based compensation - Narrative (Details) - Company directors and senior management - shares
Dec. 31, 2022
Aug. 06, 2022
Share-based payment arrangement    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares authorized for issuance (in shares)   2,910,053
Share capital percentage   5.50%
Restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares held (in shares) 125,553  
Performance shares    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares held (in shares) 292,955  
v3.23.1
Pension benefits - Additional Information (Details)
$ in Millions
 12 Months Ended
Jan. 01, 2020
plan
Dec. 31, 2022
USD ($)
rig
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Defined Benefit Plan Disclosure [Line Items]        
Accumulated benefit obligation   $ 10 $ 15  
Number of defined benefit plans terminated 2 2    
Total company contributions   $ 13 $ 18 $ 18
Onshore employees        
Defined Benefit Plan Disclosure [Line Items]        
Retirement pension as a percent of salary (as percent)   66.00%    
Retirement age   67 years    
Retirement pension cap (as percent)   66.00%    
Multiple of base   12    
Retirement age to receive pre-retirement pension   62 years    
v3.23.1
Pension benefits - Consolidated Balance Sheet Position (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Retirement Benefits [Abstract]    
Defined benefit obligation - Non-current liabilities $ (1) $ (5)
Deferred tax asset 0 1
Net defined benefit pension obligation $ (1) $ (4)
v3.23.1
Pension benefits - Annual Pension Cost (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]        
Service cost $ 0 $ 0 $ 0 $ 1
Interest cost on prior years’ benefit obligation 0 0 0 0
Gross pension cost for the year 0 0 0 1
Expected return on plan assets 0 0 0 0
Net pension cost for the year 0 0 0 1
Impact of settlement/curtailment of defined benefit plans 0 0 2 1
Total net pension cost $ 0 $ 0 $ 2 $ 2
v3.23.1
Pension benefits - Funded Status of the Defined Benefit Plan (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Feb. 23, 2022
Feb. 22, 2022
Jan. 01, 2022
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
Jan. 01, 2020
Retirement Benefits [Abstract]                
Projected defined benefit obligations $ (10) $ (16) $ (16) $ (16) $ (16) $ (16) $ (16) $ (40)
Plan assets at market value 9 $ 11 $ 11 $ 11 11 $ 16 $ 16 $ 39
Funded defined benefit pension obligation $ (1)       $ (5)      
v3.23.1
Pension benefits - Change in Projected Benefit Obligations (Details) - USD ($)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]        
Projected benefit obligations at beginning of period $ 16 $ 16 $ 16  
Service cost 0 0 0 $ 1
Benefits paid 0 (1) (1) (1)
Change in unrecognized actuarial gain 0 (3) 1 2
Settlement 0 0 0 (25)
Foreign currency translations 0 (2) 0 (1)
Projected benefit obligations at end of period $ 16 $ 10 $ 16 $ 16
v3.23.1
Pension benefits - Change in Pension Plan Assets (Details)
$ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Jan. 01, 2020
USD ($)
plan
Feb. 22, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
rig
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]            
Fair value of plan assets at beginning of year   $ 11 $ 11 $ 11 $ 16  
Contribution by employer   0 1   1 $ 6
Benefits paid   0 (1)   (1) (1)
Actuarial loss   0 (1)   0 0
Settlement   0 0   (1) (27)
Foreign currency translations   0 (1)   0 (1)
Other   0 0   (4) 0
Fair value of plan assets at end of year $ 39 $ 11 $ 9 $ 9 $ 11 $ 16
Number of defined benefit plans terminated 2     2    
v3.23.1
Pension benefits - Assumptions Used in Calculation of Pension Obligations (Details)
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]        
Rate of compensation increase at the end of year (as percent) 2.25% 2.50% 2.25% 2.25%
Discount rate at the end of year (as percent) 1.50% 3.20% 1.50% 1.70%
Prescribed pension index factor (as percent) 1.20% 1.60% 1.20% 1.20%
Expected return on plan assets for the year (as percent) 2.90% 2.90% 2.90% 2.60%
Employee turnover (as percent) 4.00% 4.00% 4.00% 4.00%
Expected increases in Social Security Base (as percent) 2.25% 3.50% 2.25% 2.00%
v3.23.1
Pension benefits - Weighted-Average Asset Allocation of Funds Related to Defined Benefit Plan (Details)
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 100.00% 100.00%
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 10.20% 9.70%
Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 73.60% 65.30%
Real estate    
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 11.00% 13.60%
Money market    
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 4.20% 10.60%
Other    
Defined Benefit Plan Disclosure [Line Items]    
Weighted-average asset allocation of funds related to defined benefit plan (as percent) 1.00% 0.80%
v3.23.1
Pension benefits - Expected Annual Pension Plan Contributions Under Defined Benefit Plans (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Defined Benefit Plan, Expected Future Employer Contributions [Abstract]  
2023 $ 1
2024 1
2025 1
2026 1
2027-2032 2
Total payments expected during the next 10 years $ 6
v3.23.1
Related party transactions - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jan. 31, 2022
Dec. 31, 2021
Nov. 30, 2021
Nov. 01, 2021
Sep. 01, 2021
Related Party Transaction [Line Items]              
Total amounts due from related parties $ 27     $ 28      
PES              
Related Party Transaction [Line Items]              
Ownership interest ( in percent) 35.00% 35.00% 35.00% 100.00% 100.00%    
SeaMex              
Related Party Transaction [Line Items]              
Ownership interest ( in percent)             50.00%
SeaMex | PES              
Related Party Transaction [Line Items]              
Ownership interest ( in percent)     100.00%     50.00%  
Seabras Sapura | PES              
Related Party Transaction [Line Items]              
Ownership interest ( in percent)     50.00%        
SeaMex              
Related Party Transaction [Line Items]              
Interest income $ 1            
SeaMex | Sponsor minimum liquidity shortfall              
Related Party Transaction [Line Items]              
Total amounts due from related parties $ 8            
v3.23.1
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, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]        
Total related party operating revenues $ 19 $ 216 $ 189 $ 305
Total related party operating expenses (3) 0 (70) (12)
Management fee revenues        
Related Party Transaction [Line Items]        
Total related party operating revenues 12 174 98 135
Reimbursable revenues        
Related Party Transaction [Line Items]        
Total related party operating revenues 3 12 65 148
Leasing revenues        
Related Party Transaction [Line Items]        
Total related party operating revenues 4 24 26 19
Other        
Related Party Transaction [Line Items]        
Total related party operating revenues 0 6 0 3
Related party expenses, leasing arrangements | West Bollsta        
Related Party Transaction [Line Items]        
Total related party operating expenses 0 0 (57) (10)
Related party expenses, leasing arrangements | West Hercules lease liability        
Related Party Transaction [Line Items]        
Total related party operating expenses (3) 0 (10) 0
Other related party operating expenses        
Related Party Transaction [Line Items]        
Total related party operating expenses $ 0 $ 0 $ (3) $ (2)
v3.23.1
Related party transactions - Analysis of Related Party Receivable Balances (Details)
$ in Millions
 12 Months Ended
Jul. 01, 2022
rig
Dec. 31, 2022
USD ($)
rig
Feb. 23, 2022
USD ($)
Dec. 31, 2021
USD ($)
Related Party Transaction [Line Items]        
Allowance for expected credit loss   $ (1)   $ (1)
Total related party receivables   27   28
Amounts due from related parties - current   27 $ 42 28
Amounts due from related parties - non-current   $ 0   0
Number of sale and leaseback rigs | rig 3 3    
Related party loans and interest        
Related Party Transaction [Line Items]        
Total related party receivables, gross   $ 0   9
Trading balances        
Related Party Transaction [Line Items]        
Total related party receivables, gross   28   20
Total related party receivables   28   $ 29
Sponsor minimum liquidity shortfall | SeaMex        
Related Party Transaction [Line Items]        
Total related party receivables   $ 8    
Interest rate on related party receivable   6.50%    
v3.23.1
Related party transactions - Analysis of Receivables Balance (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]    
Total amounts due from related parties $ 27 $ 28
Trading balances    
Related Party Transaction [Line Items]    
Total amounts due from related parties 28 29
Less: CECL allowance (1) (1)
Receivable net of CECL allowance 27 28
Trading balances | Gulfdrill    
Related Party Transaction [Line Items]    
Total amounts due from related parties 9 13
Trading balances | Sonadrill    
Related Party Transaction [Line Items]    
Total amounts due from related parties 17 4
Trading balances | PES/SeaMex    
Related Party Transaction [Line Items]    
Total amounts due from related parties $ 2 $ 12
v3.23.1
Related party transactions - Analysis of Related Party Payable Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]    
Liabilities subject to compromise $ 0 $ 6,117
Lease liability $ 0 $ 503
Finance lease, liability, statement of financial position [extensible enumeration] Liabilities subject to compromise Due to Related Parties, Noncurrent
Affiliated entity    
Related Party Transaction [Line Items]    
Total related party liabilities $ 0 $ 503
Amounts due to related parties - current 0 0
Liabilities subject to compromise 0 503
West Taurus lease liability    
Related Party Transaction [Line Items]    
Lease liability 0 345
West Linus lease liability    
Related Party Transaction [Line Items]    
Lease liability 0 158
Related party loans payable | Affiliated entity    
Related Party Transaction [Line Items]    
Total related party liabilities $ 0 $ 503
v3.23.1
Financial instruments and risk management - Additional Information (Details) - USD ($)
$ in Millions
May 11, 2018
Dec. 31, 2022
Nov. 05, 2018
Derivative [Line Items]      
Derivative (in percent) 89.00%    
Interest rate cap      
Derivative [Line Items]      
Payments for derivative instrument, financing activities $ 68    
Derivative, notional amount     $ 496
Interest rate cap | Not designated as hedging instrument      
Derivative [Line Items]      
Capped rate   4.7673% 2.877%
v3.23.1
Fair values of financial instruments - Carrying Value and Estimated Fair Value of our Financial Instrument at Amortized Cost (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total amounts due from related parties $ 27 $ 28
Liabilities subject to compromise 0 6,117
Level 2 | Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total amounts due from related parties 0 9
Level 2 | Carrying value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total amounts due from related parties 0 9
Level 3 | Fair value | Liability subject to compromise- Related Party Loan Payable (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 0 176
Level 3 | Fair value | First Lien Senior Secured (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 195 0
Level 3 | Fair value | Second Lien Senior Secured (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 284 0
Level 3 | Fair value | Unsecured Convertible Bond - debt component (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 46 0
Level 3 | Fair value | Secured Credit Facilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities subject to compromise 0 1,966
Level 3 | Carrying value | Liability subject to compromise- Related Party Loan Payable (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 0 503
Level 3 | Carrying value | First Lien Senior Secured (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 184 0
Level 3 | Carrying value | Second Lien Senior Secured (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 284 0
Level 3 | Carrying value | Unsecured Convertible Bond - debt component (Level 3) | Secured debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liability subject to compromise - Secured credit facilities 50 0
Level 3 | Carrying value | Secured Credit Facilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities subject to compromise $ 0 $ 5,544
v3.23.1
Fair values of financial instruments - Additional Information (Details)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
USD ($)
West Taurus    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unsecured Convertible Bond - debt component (Level 3)   $ 250
Discount rate | Secured Credit Facilities | Discounted cash flow    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value, cost of debt percent 0.118 0.170
v3.23.1
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, 2022
Feb. 23, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Cash and cash equivalents $ 480 $ 336 $ 293   $ 485
Current restricted cash 44 $ 85 160 $ 103  
Interest rate cap (Level 2) 5   0    
Level 1 | Fair value          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Cash and cash equivalents 480   293    
Current restricted cash 118   223    
Level 1 | Carrying value          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Cash and cash equivalents 480   293    
Current restricted cash 118   223    
Level 2 | Fair value          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Interest rate cap (Level 2) 5   0    
Level 2 | Carrying value          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Interest rate cap (Level 2) $ 5   $ 0    
v3.23.1
Commitment and Contingencies-Narrative (Details)
kr in Millions, $ in Millions
 1 Months Ended
Mar. 05, 2023
NOK (kr)
Mar. 05, 2023
USD ($)
Mar. 31, 2023
Dec. 31, 2022
USD ($)
contract
rig
Dec. 31, 2021
USD ($)
Jun. 14, 2019
Guarantor Obligations [Line Items]            
Contract value deduction percentage           2.00%
Number of active contracts | contract       3    
Number of future contracts | contract       1    
Subsequent event            
Guarantor Obligations [Line Items]            
Loss contingency, damages sought kr 300 $ 28        
Loss contingency, damages sought     72 million      
Sonadrill | Guarantees in favor of customers            
Guarantor Obligations [Line Items]            
Maximum guarantee | $       $ 1,100 $ 400  
Number of rigs | rig       3    
Northern Ocean | Guarantees in favor of customers            
Guarantor Obligations [Line Items]            
Maximum guarantee | $       $ 100 $ 150  
v3.23.1
Business combination - Narrative (Details) - USD ($)
$ in Millions
Sep. 02, 2021
Jan. 31, 2022
Jan. 01, 2022
Dec. 31, 2021
Nov. 02, 2021
Nov. 01, 2021
Sep. 01, 2021
PES              
Business Acquisition [Line Items]              
Ownership interest prior to disposal (in percent)   65.00% 100.00%        
PES              
Business Acquisition [Line Items]              
Debt securities, allowance for credit loss $ 65            
SeaMex              
Business Acquisition [Line Items]              
Ownership interest ( in percent)             50.00%
SeaMex | PES              
Business Acquisition [Line Items]              
Ownership interest ( in percent)   100.00%       50.00%  
SeaMex              
Business Acquisition [Line Items]              
Equity interest, acquisition of residual (in percent)       100.00%      
Extinguishment of debt $ 393            
SeaMex | PES              
Business Acquisition [Line Items]              
Equity interest, acquisition of residual (in percent)         50.00%    
v3.23.1
Business combination - Summary of Seamex's Identifiable Assets Acquired and Liabilities Assumed as at Acquisition Date (Details) - SeaMex
$ in Millions
Nov. 01, 2021
USD ($)
Business Acquisition [Line Items]  
Cash and cash equivalents $ 41
Restricted cash 21
Accounts receivable, net 316
Intangible drilling contracts 172
Drilling units 216
Other assets 17
Total assets 783
Amounts due to related parties 133
Long-term debt 234
Other liabilities 88
Total liabilities 455
Net asset acquired $ 328
v3.23.1
Business combination - Summary of Seamex's Operation Results Since the Acquisition Date (Details) - SeaMex - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended
Jan. 20, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Contract revenues $ 12 $ 36
Total operating revenues 12 36
Vessel and rig operating expenses (7) (25)
Selling, general and administrative expenses (1) (2)
Total operating expenses (8) (27)
Operating profit 4 9
Interest expense (1) (4)
Others (1) (1)
Total financial items (2) (5)
Income before tax 2 4
Income tax benefit (1) 2
Income after tax $ 1 $ 6
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations - Narrative (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Nov. 03, 2022
Jan. 31, 2022
USD ($)
rig
Dec. 31, 2022
USD ($)
Sep. 30, 2022
Sep. 01, 2022
rig
Jan. 01, 2022
Dec. 31, 2021
Nov. 30, 2021
Nov. 01, 2021
rig
Sep. 01, 2021
Related Party Transaction [Line Items]                    
Number of Jackup units | rig   7     7       5  
PES                    
Related Party Transaction [Line Items]                    
Ownership interest prior to disposal (in percent)   65.00%       100.00%        
Jackup Sale                    
Related Party Transaction [Line Items]                    
Fair value of consideration received     $ 670              
Exit cost associated with disposal of KSA Business     11              
Loans granted to related party     659              
Gain (loss) from disposal of discontinued operation     $ 276              
SeaMex                    
Related Party Transaction [Line Items]                    
Ownership interest ( in percent)                   50.00%
SeaMex | PES                    
Related Party Transaction [Line Items]                    
Ownership interest ( in percent)   100.00%             50.00%  
Equity method investment, ownership percentage 50.00%                  
PES                    
Related Party Transaction [Line Items]                    
Ownership interest ( in percent)   35.00% 35.00% 35.00%     100.00% 100.00%    
Realized gain (loss) on disposal   $ 112                
Seabras Sapura | PES                    
Related Party Transaction [Line Items]                    
Ownership interest ( in percent)   50.00%                
Archer | PES                    
Related Party Transaction [Line Items]                    
Ownership interest ( in percent)   15.70%                
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations - Income Statement and Statement of Cashflows (Details) - Jackup Sale
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Gain on Sale  
Initial purchase price, gain on sale $ 628
Adjustment for working capital, cash, and reimbursement of reactivation costs, gain on sale 53
Less: Deal costs (11)
Fair value of indemnities and warranties, gain on sale (36)
Gain on sale of tender rig business 634
Book value of KSA business, gain on sale (358)
Income/(loss) from discontinued operations 276
Received/(paid) to date  
Initial purchase price, received (paid) to date 628
Adjustment for working capital, received (paid) to date 50
Disposal group including discontinued operations received/(paid) to date (11)
Fair value of indemnities and warranties, received (paid) to date (8)
Net sales price 659
Book value of KSA business, received (paid) 0
Proceeds from Divestiture of Businesses $ 659
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations - Summary of Carrying Amounts of Major Classes of Assets and Liabilities Classified as Held-for-sale (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 $ 1,492
Total liabilities associated with assets held for sale    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale 0 1,103
Current    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale 0 983
Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale 0 118
Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale 0 2
PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale   1,103
PES | Total liabilities associated with assets held for sale    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   948
PES | Current    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   948
PES | Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   0
PES | Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   0
KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 389
Total liabilities associated with assets held for sale 0 37
KSA Business | Total liabilities associated with assets held for sale    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   155
KSA Business | Current    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   35
KSA Business | Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   118
KSA Business | Liabilities subject to compromise    
Long Lived Assets Held-for-sale [Line Items]    
Total liabilities associated with assets held for sale   2
Current    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 1,145
Current | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale   1,103
Current | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale   42
Non-current    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 347
Non-current | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale   0
Non-current | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale   $ 347
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations - Summary of net income (loss) from discontinued operations (Details) - USD ($)
$ / shares in Units, $ in Millions
 2 Months Ended 10 Months Ended 12 Months Ended
Feb. 22, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Long Lived Assets Held-for-sale [Line Items]          
Income/(loss) from discontinued operations $ (33) $ 274   $ (15) $ (233)
Discontinued operation, gain (loss) on disposal, statement of income or comprehensive income [extensible enumeration]     Income/(loss) from discontinued operations    
Net profit/(loss) before tax $ (33) $ 274   $ (15) $ (233)
Basic Earning/(loss) per share from discontinued operations (in usd per share) $ (0.33) $ 5.48   $ (0.15) $ (2.32)
Diluted Earning/(loss) per share from discontinued operations (in usd per share) $ (0.33) $ 5.21   $ (0.15) $ (2.32)
PES          
Long Lived Assets Held-for-sale [Line Items]          
Income/(loss) from discontinued operations $ (4) $ 0   $ 5 $ (215)
KSA Business          
Long Lived Assets Held-for-sale [Line Items]          
Income/(loss) from discontinued operations (29) 8   (20) (18)
Gain on disposal of KSA Business 0 (276)   0 0
Exit cost associated with disposal of KSA Business 0 10   0 0
Net profit/(loss) before tax $ (29) $ 10   $ (15) $ (13)
v3.23.1
Assets and Liabilities Held for Sale/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, 2021
Dec. 31, 2020
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities $ 5 $ 12 $ (5) $ (22)
Net cash (used in)/provided by investing activities - discontinued operations 0 (40) 23 36
Net cash provided by/(used in) financing activities - discontinued operations 20 16 0 (96)
KSA and PES        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (89) 5 (5) (22)
Net cash (used in)/provided by investing activities - discontinued operations 0 (40) 23 36
Net cash provided by/(used in) financing activities - discontinued operations 20 16 0 (96)
PES        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (69) 0 (18) (24)
Net cash (used in)/provided by investing activities - discontinued operations 0 0 23 36
Net cash provided by/(used in) financing activities - discontinued operations 0 0 0 0
KSA Business        
Long Lived Assets Held-for-sale [Line Items]        
Net cash provided by/(used in) operating activities (20) 5 13 2
Net cash (used in)/provided by investing activities - discontinued operations 0 (40) 0 0
Net cash provided by/(used in) financing activities - discontinued operations $ 20 $ 16 $ 0 $ (96)
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations -Balance sheet of the KSA Business for periods when it was a fully consolidated subsidiary of Seadrill (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 $ 1,492
KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 389
Liabilities subject to compromise 0 118
Trade accounts payable 0 6
Uncertain Tax Positions 0 2
Other liabilities 0 29
Total liabilities associated with assets held for sale 0 37
Cash and cash equivalents | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 19
Accounts receivable | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 12
Drilling units | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 346
Other assets | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 $ 12
v3.23.1
Assets and Liabilities Held for Sale/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, 2021
Dec. 31, 2020
Long Lived Assets Held-for-sale [Line Items]        
Vessel and rig operating expenses $ (10) $ (45) $ (64) $ (65)
Depreciation and amortization (4) (22) (28) (28)
Selling, general and administrative expenses (1) (8) (10) (6)
Net profit/(loss) before tax (33) 274 (15) (233)
Income/(loss) from discontinued operations (33) 274 (15) (233)
KSA Business        
Long Lived Assets Held-for-sale [Line Items]        
Contract revenues 18 86 101 98
Total operating revenues 18 86 101 98
Total operating expenses 15 75 102 99
Operating profit 3 11 (1) (1)
Interest income 0 0 0 1
Interest expense 0 0 0 (11)
Reorganization items, net (32) 0 (14) 0
Other financial items 0 (1) 0 (2)
Net profit/(loss) before tax (29) 10 (15) (13)
Income tax expense 0 (2) (5) (5)
Income/(loss) from discontinued operations $ (29) $ 8 $ (20) $ (18)
v3.23.1
Assets and Liabilities Held for Sale/Discontinued Operations -Balance sheet of the Paratus Energy Services for periods when it was a fully consolidated subsidiary of Seadrill (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 $ 1,492
KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 389
Trade accounts payable 0 6
Uncertain Tax Positions 0 2
Other liabilities 0 29
Total liabilities associated with assets held for sale 0 37
PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 1,103
Trade accounts payable 0 7
Cash and cash equivalents 0 12
Other assets 0 814
Uncertain Tax Positions 0 25
Other liabilities 0 90
Total liabilities associated with assets held for sale 0 948
Cash and cash equivalents | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 19
Cash and cash equivalents | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 48
Non-current | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 21
Accounts receivable | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 12
Accounts receivable | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 318
Intangible drilling contracts | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 165
Drilling units | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 346
Drilling units | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 215
Liabilities subject to compromise | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 239
Non-current | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 69
Total liabilities associated with assets held for sale | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 6
Other assets | KSA Business    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale 0 12
Other assets | PES    
Long Lived Assets Held-for-sale [Line Items]    
Total assets held for sale $ 0 $ 22
v3.23.1
Assets and Liabilities Held for Sale/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, 2021
Dec. 31, 2020
Long Lived Assets Held-for-sale [Line Items]        
Net profit/(loss) before tax $ (33) $ 274 $ (15) $ (233)
Income/(loss) from discontinued operations (33) 274 (15) (233)
PES        
Long Lived Assets Held-for-sale [Line Items]        
Contract revenues 12 0 36 0
Total operating revenues 12 0 36 0
Selling, general and administrative expenses (8) 0 (27) 0
Amortisation of Intangibles (8) 0 (27) 0
Operating profit 4 0 9 0
Interest income 0 0 18 26
Interest expense (4) 0 (77) (60)
Reorganization items, net (1) 0 14 (77)
Income tax expense 0 0 0 (47)
Net profit/(loss) before tax 0 0 0 (29)
Other financial items (2) 0 39 (27)
Total financial items (7) 0 (6) (214)
Net profit/(loss) before tax (3) 0 3 (214)
Income tax expense (1) 0 2 (1)
Income/(loss) from discontinued operations $ (4) $ 0 $ 5 $ (215)
v3.23.1
Subsequent Events (Details)
$ / shares in Units, shares in Millions, kr in Millions, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 03, 2023
USD ($)
vessel
rig
$ / shares
shares
Mar. 15, 2023
USD ($)
Mar. 05, 2023
USD ($)
Mar. 05, 2023
NOK (kr)
Feb. 10, 2023
USD ($)
Mar. 31, 2023
Nov. 30, 2022
USD ($)
Oct. 31, 2022
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Mar. 14, 2023
Sep. 30, 2022
Feb. 23, 2022
$ / shares
Jan. 31, 2022
Nov. 30, 2021
Subsequent Event [Line Items]                                
Shares issued, closing share price (in usd per share) | $ / shares                           $ 29.98    
Exit fee | $                   $ 22.0 $ 0.0          
Second Lien Senior Secured (Level 3) | Secured debt                                
Subsequent Event [Line Items]                                
Exit fee | $             $ 13.0 $ 10.0   $ 13.0 $ 0.0          
Subsequent event                                
Subsequent Event [Line Items]                                
Loss contingency, damages sought     $ 28.0 kr 300                        
Loss contingency, damages sought           72 million                    
Subsequent event | Second Lien Senior Secured (Level 3) | Secured debt                                
Subsequent Event [Line Items]                                
Repayments of debt | $   $ 44.0     $ 118.0       $ 162.0              
Debt Instrument, repaid, principal | $   40.0     110.0       $ 150.0              
Exit fee | $   2.0     6.0                      
Interest repaid | $   $ 2.0     $ 2.0                      
Subsequent event | Floaters                                
Subsequent Event [Line Items]                                
Number of vessels owned 12                              
Subsequent event | Drillship, 7th generation                                
Subsequent Event [Line Items]                                
Number of vessels owned 7                              
Subsequent event | Drillship, 6th generation                                
Subsequent Event [Line Items]                                
Number of vessels owned 3                              
Subsequent event | Benign environment semi-submersible                                
Subsequent Event [Line Items]                                
Number of vessels owned 2                              
Subsequent event | Harsh environment                                
Subsequent Event [Line Items]                                
Number of vessels owned 3                              
Subsequent event | Benign jack-up rigs                                
Subsequent Event [Line Items]                                
Number of vessels owned 4                              
Subsequent event | Tender assisted rigs                                
Subsequent Event [Line Items]                                
Number of vessels owned 3                              
Subsequent event | Rigs under management service arrangements                                
Subsequent Event [Line Items]                                
Number of vessels owned 7                              
Subsequent event | The Merger                                
Subsequent Event [Line Items]                                
Number of shares issued in business acquisition (in shares) | shares 29.9                              
Voting rights 37.00%                              
Equity interest issued in business acquisition | $ $ 1,200.0                              
Shares issued, closing share price (in usd per share) | $ / shares $ 41.6                              
Subsequent event | The Merger | Drillship                                
Subsequent Event [Line Items]                                
Number of vessels acquired in business acquisition | rig 4                              
Subsequent event | The Merger | Semi-submersible                                
Subsequent Event [Line Items]                                
Number of vessels acquired in business acquisition 1                              
Subsequent event | The Merger | Tender assist unit                                
Subsequent Event [Line Items]                                
Number of vessels acquired in business acquisition 3                              
PES                                
Subsequent Event [Line Items]                                
Ownership interest ( in percent)                   35.00% 100.00%   35.00%   35.00% 100.00%
PES | Subsequent event                                
Subsequent Event [Line Items]                                
Ownership interest ( in percent)                       35.00%        
v3.23.1
Label Element Value
Accumulated Depreciation, Depletion and Amortization, Other Assets sdrl_AccumulatedDepreciationDepletionAndAmortizationOtherAssets $ 0
Other Assets, Gross sdrl_OtherAssetsGross 96,000,000
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 0
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 0
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 59,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations 509,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations 1,357,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 152,000,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations 19,000,000
Gross Carrying Amount Of Unfavorable Contracts To Be Amortized sdrl_GrossCarryingAmountOfUnfavorableContractsToBeAmortized 85,000,000
Reorganization, Chapter 11, Fresh-Start Adjustment [Member]  
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized (60,000,000)
Reorganization, Chapter 11, Predecessor, before Adjustment [Member]  
Accumulated Amortization Of Unfavorable Contracts To Be Amortized sdrl_AccumulatedAmortizationOfUnfavorableContractsToBeAmortized 60,000,000
Other Current Assets [Member]  
Accounts Receivable, Allowance for Credit Loss us-gaap_AllowanceForDoubtfulAccountsReceivable 0
Related Party Receivable, Noncurrent [Member]  
Accounts Receivable, Allowance for Credit Loss us-gaap_AllowanceForDoubtfulAccountsReceivable 0
Equipment [Member]  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment 0
Property, Plant and Equipment, Gross us-gaap_PropertyPlantAndEquipmentGross $ 9,000,000