Published 2022-09-01 00:00:00
Seadrill Limited announces sale of seven jack-ups

Seadrill Limited announces today that it has entered into a binding Share Purchase Agreement (“SPA”) with subsidiaries of ADES Arabia Holding Ltd. (together, “ADES”) to sell the legal entities that own and operate seven jack-ups (the “Jack-up Sale”) in the Kingdom of Saudi Arabia.

Upon completion of the Jack-up Sale, the AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida, and West Leda will be owned by ADES. ADES will also employ the crews operating the rigs and will hold the drilling contracts related to the rigs. The total consideration for the Jack-up Sale is USD 628 million in cash, subject to adjustment for working capital and other items, and reimbursement to Seadrill for any project costs spent at the time of closing in relation to the reactivation of the three stacked jack-ups, namely the West Ariel, West Cressida and West Leda (“Reactivation Rigs”). This translates into approximately USD 100 million per rig on a ready to drill basis.

The proceeds from the Jack-up Sale enable Seadrill to significantly de-leverage its balance sheet and to eliminate outstanding capital expenditure for the Reactivation Rigs.

The Jack-up Sale is subject to customary closing conditions, including approval of competition authorities in Saudi Arabia, and is anticipated to close within the fourth quarter of 2022. Seadrill will provide customary transition support services to ADES for a limited period of time following closing.

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