Hamilton, Bermuda-based offshore drilling firm SeaDrill Limited (NYSE:SDRL) subsidiary North Atlantic Drilling declared that it has got a contract extension offer for its rig West Phoenix from Total SA, an integrated energy player. The estimated value for the extended work is $62 million.

The semi-submersible unit will carry out the additional activities for Total from mid Mar 2016 through Aug 2016.

It is to be noted that North Atlantic will likely get a part of the contract revenue from Sep 2015 to mid Mar 2016, when the rig remains idle. Investors should know that through the seven-month period when the rig is out of work, Total will be able to use it for other requirements.

The extended accord also states that Total will operate West Phoenix for a reduced day rate during the current contract period − effective June to Aug 2015.

SeaDrill, the parent company of North Atlantic Drilling, holds a robust portfolio of modern fleet with new equipment that command higher rates compared with its peers. The company also boasts a strong backlog that may provide some stability in these troubled times. On the other hand, Total is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization.

However, the recent fresh slump in oil prices will not favor either SeaDrill or Total as the price of crude is directly correlated with the business of these two companies.

On the ratings front, Seadrill has been the subject of a number of recent research reports. In a report issued on June 17, Canaccord Genuity analyst Alex Brooks reiterated a Sell rating on SDRL. Separately, on May 29, Wells Fargo’s Judson Bailey maintained a Sell rating on the stock .

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alex Brooks and Judson Bailey have a total average return of 15.9% and 1.8% respectively. Brooks has a success rate of 70.0% and is ranked #1144 out of 3694 analysts, while Bailey has a success rate of 41.2% and is ranked #2076.

The street is mostly Bearish on SDRL stock. Out of 6 analysts who cover the stock, 3 suggest a Sell rating , 2 suggest a Hold and one recommends to Buy the stock.

Seadrill Ltd provides drilling & well services to the offshore industry. It has a fleet of drilling units that is outfitted to operate in shallow water, mid-water and deepwater areas, in benign & harsh environments.