Seadrill  has received a three-year contract extension from Saudi Aramco for the jackup rig AOD III. The extension, which will expire in December 2019, is in direct continuation of the current contract, World Oil reported.

Following the announcement, Seadrill’s CEO, Per Wullf, said that the operating expenses (OPEX) for the rig ranged between $60,000 and $65,000 per day, including overhead costs but excluding interest payments and debt amortization. He added the rig unit has operated very well for Aramco, and that the rate obtained in the contract extension reflects what can be obtained for an outperforming unit, according to E&P Magazine.

Wullf concluded that  the market is difficult, and that 2017 will be a rough year. Wullf said that in the current market, it is generally easier to win extensions of existing deals than to obtain new contracts.

Seadrill is an important player in the jack-up segment, which is the segment called shallow offshore because the water depth encountered is mostly limited, informed Seeking Alpha. The company has have three jack-ups working with Saudi Aramco namely the AOD I, AOD II and AOD III. All three of the AOD jack-up rigs are being managed by Seadrill after the rig operator purchased a controlling stake in the Asia Offshore Drilling in April 2013.