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Seadrill Limited News

23 Dec 2022

Two Offshore Drilling Firms Set to Merge

Credit: Aquadrill

Offshore drilling firms Seadrill Limited and Aquadrill (ex-Seadrill Partners) on Thursday announced a definitive merger agreement under which Seadrill will acquire Aquadrill in an all-stock transaction. When the transaction is completed, Seadrill shareholders and Aquadrill unitholders will own 62% and 38% of the common shares in the new company, respectively. Based on Seadrill's 30-day volume-weighted average share price of US$31.25 on the NYSE as of December 22, 2022, the deal…

13 Dec 2021

Petrobras Books Another Seadrill Drillship for Búzios Drilling

Offshore drilling company Seadrill Limited has secured a contract for the West Jupiter drillship with Brazil's Petrobras for work in the Búzios field offshore Brazil. The contract is for a firm term of 1,040 days with the start-up slated for December 2022. The total contract value is about $264 million, including mobilization revenue and additional services.Seadrill’s Chief Executive Officer, Stuart Jackson, said: “Petrobras is a long-standing and valued customer of Seadrill, and signing a third contract with them this quarter is testament to our strong partnership and commitment to the Brazilian market. Seadrill is focused on growing our fleet in strategic basins where we see high growth potential…

24 Sep 2020

Operation Car Wash: Seadrill Served with Search and Seizure Warrant in Brazil

Offshore drilling contractor Seadrill said Thursday its Brazilian subsidiary had been served with a search and seizure warrant in relation to a bribery investigation."Seadrill Limited confirms that today its 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 latest phase of Operation Car Wash."Operation Car Wash is a years-long corruption investigation by the Brazilian Federal Police that covers, among others, allegations that some Petrobras executives have been taking bribes to award contracts to service providers."Seadrill is cooperating fully with the ongoing investigation," the company said.

14 Sep 2017

Seadrill Files Chapter 11 Bankruptcy Protection

Seadrill Limited, one of the world’s largest offshore drilling companies, has filed for Chapter 11 bankruptcy protection at the Southern District Texas court, Reuters reported. The indebted oil rig firm controlled by Norwegian billionaire John Fredriksen is seeking to restructure its roughly $10 billion  debts as the petroleum industry continues to grapple with low prices. Seadrill announced that the court overseeing the Company's chapter 11 restructuring proceedings has granted the relief requested by the Company in its key first-day motions related to ordinary course business activities. The approved motions give the Company the authority to…

15 Jan 2016

Seadrill Pushes Back Drillship Delivery

Seadrill Limited has reached an agreement with DSME shipyard to defer the delivery of two ultra-deepwater drillships, the West Aquila and West Libra, until the second quarter of 2018 and first quarter of 2019 respectively.   Under the terms of the original construction contracts, the units were to be delivered by the end of the second quarter of 2016, and the total final yard installment for both units of over $800 million was due at that time.   The agreement announced today improves Seadrill’s near term liquidity position by deferring these capex commitments to 2018 and 2019, with no further payments to the yard until that time.

15 Sep 2015

Seadrill Cancels West Mira Construction Contract

Offshore drilling company Seadrill Limited said it has exercised its right to cancel the contract for the construction of the West Mira drilling unit following builder Hyundai Heavy Industries Co Ltd.’s inability to complete the project on deadline. West Mira, a sixth generation ultra-deepwater harsh environment semisubmersible drilling unit, was ordered during the second quarter of 2012 and was supposed to be delivered at or before December 31, 2014. “Due to the shipyard's inability to deliver the unit within the timeframe required under the contract, the company has exercised its cancellation rights,” Seadrill said in a press release.

17 Jun 2015

Seadrill Sells Drillship to Seadrill Partners

West Polaris (Photo: Seadrill)

Seadrill Limited announced that it has entered into an agreement with Seadrill Operating LP, the 58 percent owned subsidiary of Seadrill Partners LLC, pursuant to which Seadrill Operating will acquire all of the shares of Seadrill Polaris Ltd., the entity that owns and operates the drillship, the West Polaris from Seadrill. The acquisition is expected to close within seven days. The West Polaris is a sixth generation, dynamically positioned drillship delivered from the Samsung shipyard in 2008.

30 Dec 2014

Ship Finance Sells Drillship to Seadrill

Ship Finance International Limited announced that Seadrill Limited has exercised a purchase option for an ultra-deepwater drilling unit. Ship Finance acquired the West Polaris in 2008 and chartered it to a subsidiary of Seadrill on a long-term bareboat charter where Seadrill was granted certain purchase options, first time in 2012. The purchase option price is $456 million and the transaction will be effected as a sale of the shares in the asset-owning subsidiary. Ship Finance will receive approximately $108 million in net cash proceeds from the sale, but does not expect a material book impact from the transaction. The company said it expects to reinvest cash proceeds in new assets, and the sale of West Polaris is not expected to impact the dividend capacity going forward.

27 Oct 2014

Svanevik Elected to Seadrill Board

Seadrill Limited announced today that Carl Erik Steen has resigned from the board of directors with immediate effect. Filling the position is Ørjan Svanevik, who was appointed by the board of directors to fill the vacant position starting immediately. Svanevik is an employee of the Seatankers Group and was previously managing director for the investment advisory firm, Oavik Capital. Prior to Oavik, he was head of M&A and a partner at Aker ASA, and COO and EVP of Kværner ASA. Svanevik also worked nearly a decade in corporate advisory and investment banking. He started his career at Schlumberger, where he held various international financial management positions. Svanevik has an AMP from Harvard Business School and a MBA from Thunderbird.

21 Sep 2014

Seadrill Chairman Reassures Investors as Director Leaves

Seadrill Limited informs that Tor Olav Trøim has decided not to stand for re-election to the Board of Directors in order to focus his efforts on developing Golar LNG. John Fredriksen, Chairman of the Board of Directors comments, "I consider my stake in Seadrill a long term investment and investors can rest assured that no divestment is considered for the foreseeable future. The Board has gone to great lengths to build a strong and independent management team and we are pleased with the results of our efforts. "The team we have in place has a long history with the company and brings the energy and leadership required to drive results going forward. Although the market currently is challenging, the long term fundamentals of the offshore drilling business are well intact.

27 Aug 2014

Seadrill's Q2 2014 Revenue Holds Nearly Steady

Revenues for the second quarter of 2014 were US$1,222 million compared to US$1,221 million in the first quarter of 2014, according to the company's financial report. Operating profit for the quarter was US$476 million compared to US$890 million in the preceding quarter. The decrease is primarily due to inclusion of the gain on sale of the West Auriga sale of US$440 million in first quarter results. Net financial and other items for the quarter showed a gain of US$71 million compared to a gain of US$2,239 million in the previous quarter. The gain is primarily related to the sale of SapuraKencana shares and income received from Seadrill Partners of US$59 million, partially offset by a loss from Archer of US$5 million and a loss on derivative positions of US$95 million.

23 Aug 2014

Rosneft and NADL Sign Exchange of Assets Deal

Rosneft, Seadrill Limited and North Atlantic Drilling Limited (NADL) signed a Framework Agreement that envisages long-term cooperation in the sphere of oilfield development projects. The document foresees the acquisition by Rosneft of NADL shares through an exchange of assets and investments in NADL charter capital. Moreover agreement’s options contemplate a possibility for Rosneft to increase its stake in NADL according to the development of the cooperation. The deal is implemented within the Rosneft’s strategy aimed at strengthening and expanding its service business potential, increasing its technological capabilities and will allow the Company to acquire a fleet of platforms and drilling rigs for the conduction of on and offshore drilling operations.

23 Jul 2014

Seadrill Bondholders: Majority Accept Conversion Offer

Seadrill Limited says that holders of approximately US$547 million of Seadrill's convertible bonds due 2017 (representing approx. 84.1% of the total outstanding amount) have submitted their acceptances of the voluntary conversion offer made by Seadrill on 18th July 2014. Bondholders in Seadrill's convertible bonds due 2017 are reminded about the "90% clean-up call" as described in the Bond agreement clause 10.2.2 which gives Seadrill the right to call the remaining part of the bonds at par value plus accrued interest provided that 90% or more of the original issued amount of US$650 million have been redeemed or converted into shares.

10 Jul 2014

Seadrill Obtains US$1.35-bln Bank Credit Reflnancing

Seadrill Limited informs it has received commitments from 17 banks for a US$1.35 billion credit facility with a 5 year term and 10 year amortization profile to refinance the credit facilities secured by the West Pegasus, West Gemini, and West Orion. The transaction was initially launched as a US$900 million facility secured by two ultra-deepwater units. However, due to strong interest from the Company's banking group, the facility was upsized to US$1.35 billion by including one additional ultra-deepwater unit in the collateral package. The new loan will be priced at a margin of Libor plus 2% and was substantially oversubscribed, demonstrating the strength of Seadrill's credit in the banking market. This refinancing will provide Seadrill with US$350 million in additional cash.

03 Apr 2014

Seadrill Contracts Out Multiple Jack-Up Units

Seadrill vessel: Photo courtesy of the owners

Seadrill Limited informs it has secured new contracts for the jack-up units 'West Tucana', 'West Telesto', 'West Ariel', and 'West Prospero'. Additionally, the contract for the 'West Mischief' has been extended by four months. The total revenue potential for the four new contracts and one extension is approximately US$319- million. West Tucana, a Friede & Goldman JU-2000E jack-up rig, has secured a contract offshore Angola with Cabinda Gulf Oil Company Limited (CABGOC) - Chevron's wholly owned operating unit in Angola. The contract is for a firm period of 24 months.

15 Nov 2013

Seadrill Acquires High-end Jack-up Rig 'Prospector 3'

Seadrill Limited has entered into an agreement to acquire the company that owns the yard construction contract of the newbuild high specification jack-up rig 'Prospector 3' from Prospector Offshore for a total purchase price of US$235 million. In addition, Seadrill will provide drilling and handling tools, spares and operations preparations resulting in a total cost for this rig, ready to drill, of approximately US$250 million. The Prospector 3 is scheduled to be delivered from Dalian Shipbuilding Industry Offshore Co., Ltd. (DSIC Offshore) in China during the first quarter of 2014. The new unit is based on the F&G JU2000E design, with water depth capacity of 400ft and drilling depth of 35,000ft.

12 Nov 2013

North Atlantic Drilling Set for Initial NYSE Public Offering

North Atlantic Drilling Limited (NADL), a leading offshore harsh environment drilling company in which Seadrill Limited currently holds a 74 percent ownership interest, to file for independent listing on the New York Stock Exchange (NYSE). The company states that it has filed its first amended registration statements with the United States Securities and Exchange Commission (SEC) in connection with its initial public offering and concurrent offer to exchange previously issued unregistered common shares, other than the common shares owned by affiliates of NADL, for common shares that have been registered under the Securities Act of 1933, as amended. Morgan Stanley will act as the Global Coordinator and Lead Bookrunner for the initial public offering.

02 Jul 2013

Jack-up Rig Deal Agreed by NADL & Ship Finance

'West Linus': Photo courtesy of Seadrill

North Atlantic Drilling ("NADL") and Ship Finance International Limited ("Ship Finance") agree a combined a combined sale & leaseback arrangement for the harsh environment jack-up rig 'West Linus'. Ship Finance will acquire the harsh environment jack-up drilling rig West Linus from a subsidiary of NADL. The West Linus is currently under construction at Jurong Shipyard in Singapore with scheduled delivery in December 2013. The total acquisition cost will be US$600 million and the drilling rig will be chartered back to NADL on a bareboat contract for a period in excess of 15 years.

12 Jul 2013

Seadrill Secures Jack-up 'West Freedom' Contract

'West Freedom': Photo courtesy of Seadrill

Seadrill Limited has secured a new contract for the LT-Super 116E jack-up rig West Freedom offshore Venezuela with Cardon IV Venezuela, an ENI SpA and REPSOL joint venture. The contract is for a firm period of 30 months plus an option for a 6 month extension at mutually agreed rates. The potential revenue for the primary contract term is approximately US$222 million inclusive of an estimated $8.5 million of mobilization. The West Freedom is currently operating in Qatar and will likely be available to commence its charter in late September 2013.

25 Jul 2013

Seadrill Wants Remaining Sevan Drilling Shares

Seadrill announces mandatory offer for all outstanding shares in Sevan Drilling. On June 27, 2013 Seadrill Limited announced that it had acquired 116,934,875 shares in Sevan Drilling ASA  at a price of NOK 3.95 per share and its intention to launch a mandatory offer for all the outstanding shares in Sevan Drilling not owned by Seadrill. They now announce the launch of the Offer  on the terms and conditions set out in the offer document dated July 24, 2013. A cash consideration of NOK 3.95 per share will be offered, equalling the cash offer in the completed Acquisition. The acceptance period commences tomorrow and expires at 16:30 (CET) on August 22, 2013.

31 Jul 2013

ChIna Shipyard Wins Two More Seadrill Jack-up Orders

Seadrill Limited has ordered tow high-specification jack up drilling rigs from Dalian Shipbuilding Industry Offshore Co., Ltd. (DSIC Offshore). The newbuild rigs are scheduled for delivery during the second and third quarters of 2016, and the total project price per rig is approximately US$230 million (including project management, capitalized interest, drilling and handling tools, spares and operation preparations), with tail-heavy payment terms. The two new units will be based on the F&G JU2000E design, with water depth capacity of 400ft and drilling depth of 30,000ft. Seadrill now has in total ten jack-ups under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and three in 2016.

16 Aug 2013

Seadrill Look to the North With NADL

Drillship West Navigator: Photo courtesy of Seadrill

Seadrill and North Atlantic Drilling announce strategic partnership to develop their business for drilling in harsh environments. The basis for the establishment of NADL in 2011 was to carve out a premium specialist operator with a superior safety standard in harsh environment areas and to use this as a platform to grow the business substantially. NADL builds on a 40-year history of drilling operations and a best-in-class track record in challenging areas. The recent discoveries and activities in harsh environment areas like Norway…

11 Oct 2013

Offshore Rig's Canada Deployment Costs Seadrill

West Aquarius rig: Photo courtesy of Seadrill

Seadrill Limited subsidiary, Seadrill Partners, as part of a settlement agreement, has agreed to non-payment for 37 days hire of the semi-submersible rig 'West Acquarius'. The 37 days off hire were required for the ultra-deepwater harsh environment semi-submersible West Aquarius to complete modifications and repairs in order to meet the regulatory requirements for operations in Canadian waters and for the operator to receive authorization from the Canadian authorities to commence operation. This loss will negatively impact third quarter results.