XML 36 R29.htm IDEA: XBRL DOCUMENT v3.21.2
Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
We have operating leases relating to our premises, the most significant being our offices in London, Liverpool, Oslo, Stavanger, Singapore, Houston, Rio de Janeiro and Dubai. In accordance with Topic 842, we record a lease liability and associated right-of-use asset for our portfolio of operating leases.

We continue to lease three of our benign environment jack-up rigs, West Castor, West Telesto and West Tucana, to our joint venture, Gulfdrill, for a contract with GDI in Qatar.

In March, 2020, Seadrill was awarded a contract to provide drilling services for 10 firm wells and 4 optional wells. To fulfill this contract Seadrill entered a charter agreement to lease the West Bollsta rig from Northern Ocean. The rig was mobilized and commenced operations in early October, 2020 after being available at the drill location in September, 2020. This operating lease arrangement resulted in the recognition of a lease liability and offsetting right of use asset.

For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2021 are as follows:
(In $ millions)Future cash flows
July 1 - December 31, 202122 
Year ended December 31, 202251 
Year ended December 31, 20232 
Year ended December 31, 20241 
Year ended December 31, 2025 and thereafter— 
Total76 

The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheets as at June 30, 2021 and December 31, 2020:
(In $ millions)As at June 30, 2021As at December 31, 2020
Total undiscounted cash flows76 79 
Less: short term leases— — 
Less: discount(5)(11)
Operating lease liability71 68 
Of which:
Current67 51 
Non-current4 17 
The following table gives supplementary information regarding our lease accounting for the six months ended June 30, 2021 and six months ended June 30, 2020:
(In $ million)Six months ended June 30, 2021Six months ended June 30, 2020
Operating Lease Cost:
Operating lease cost5 4 
Short-term lease cost— — 
Total Lease cost5 4 
Other information:
Cash paid for amounts included in the measurement of lease liabilities - Operating Cash flows5 4 
Right-of-use assets obtained in exchange for operating lease liabilities during the period— — 
Weighted-average remaining lease term in months1228
Weighted-average discount rate29 %13 %

In November 2019, March 2020 and November 2020 we respectively leased the West Castor,West Telesto and West Tucana to Gulfdrill. The estimated future undiscounted cash flows on these leases as at June 30, 2021 are as follows:
(In $ millions)Future cash flows
July 1 - December 31, 202114 
Year ended December 31, 202228 
Year ended December 31, 202328 
Year ended December 31, 202421 
2024 and thereafter20 
Total111 
Leases Leases
We have operating leases relating to our premises, the most significant being our offices in London, Liverpool, Oslo, Stavanger, Singapore, Houston, Rio de Janeiro and Dubai. In accordance with Topic 842, we record a lease liability and associated right-of-use asset for our portfolio of operating leases.

We continue to lease three of our benign environment jack-up rigs, West Castor, West Telesto and West Tucana, to our joint venture, Gulfdrill, for a contract with GDI in Qatar.

In March, 2020, Seadrill was awarded a contract to provide drilling services for 10 firm wells and 4 optional wells. To fulfill this contract Seadrill entered a charter agreement to lease the West Bollsta rig from Northern Ocean. The rig was mobilized and commenced operations in early October, 2020 after being available at the drill location in September, 2020. This operating lease arrangement resulted in the recognition of a lease liability and offsetting right of use asset.

For operating leases where we are the lessee, our future undiscounted cash flows as at June 30, 2021 are as follows:
(In $ millions)Future cash flows
July 1 - December 31, 202122 
Year ended December 31, 202251 
Year ended December 31, 20232 
Year ended December 31, 20241 
Year ended December 31, 2025 and thereafter— 
Total76 

The following table gives a reconciliation between the undiscounted cash flows and the related operating lease liability recognized in our Consolidated Balance Sheets as at June 30, 2021 and December 31, 2020:
(In $ millions)As at June 30, 2021As at December 31, 2020
Total undiscounted cash flows76 79 
Less: short term leases— — 
Less: discount(5)(11)
Operating lease liability71 68 
Of which:
Current67 51 
Non-current4 17 
The following table gives supplementary information regarding our lease accounting for the six months ended June 30, 2021 and six months ended June 30, 2020:
(In $ million)Six months ended June 30, 2021Six months ended June 30, 2020
Operating Lease Cost:
Operating lease cost5 4 
Short-term lease cost— — 
Total Lease cost5 4 
Other information:
Cash paid for amounts included in the measurement of lease liabilities - Operating Cash flows5 4 
Right-of-use assets obtained in exchange for operating lease liabilities during the period— — 
Weighted-average remaining lease term in months1228
Weighted-average discount rate29 %13 %

In November 2019, March 2020 and November 2020 we respectively leased the West Castor,West Telesto and West Tucana to Gulfdrill. The estimated future undiscounted cash flows on these leases as at June 30, 2021 are as follows:
(In $ millions)Future cash flows
July 1 - December 31, 202114 
Year ended December 31, 202228 
Year ended December 31, 202328 
Year ended December 31, 202421 
2024 and thereafter20 
Total111