Rumor of the day: Seadrill under consideration by ExxonMobil

[rob]

Seems pretty far fetched to me, but apparently there are some former employees at Seadrill who think that a merger might be in the works...

[Capt. Lee]

Sounds like you have no information from unreliable sources. Great job reporting!!

If you want a real rumor....Seadragon 1 and Seadragon 2 are being acquired by Seadrill. These were two rigs managed by Vantage.

[john]

Sounds like you have no information from unreliable sources. Great job reporting!!

That's why it's titled "Rumor of the day..." Lee. If it was news it would be up on the blog

[anchorman]

That's why it's titled "Rumor of the day..." Lee. If it was news it would be up on the blog

Lee gets confused with Fact or Fiction. Ask him about when he was still at Chouest... and someone said we were getting a raise on April 1st.......he believed it !!!......and was telling everyone on the planet with such passion too.....and the significance of the date never hit home. It was almost sad to watch.

[Capt. Lee]

If I were only an Ostrich.

[anchorman]

[ossy]

Sounds true, us guys on the Seadragon 1 have heard Seadrill have got the rigs.
Where did you hear the 'rumor'?

[Mr 100-ton]

The Admiral is watching

orly-ostrich.jpg

[anchorman]

Sounds true, us guys on the Seadragon 1 have heard Seadrill have got the rigs.
Where did you hear the 'rumor'?

Seadrill management......99% done deal....announcement pending if it goes through

[Capt. Lee]

Sounds true, us guys on the Seadragon 1 have heard Seadrill have got the rigs.
Where did you hear the 'rumor'?

I sent you a Private Message.

[anchorman]

Seadrill snares Seadragons
Seadrill has agreed to acquire two semi-submersible drilling rigs under construction in Singapore in a deal worth $1.2bn.


John Fredriksen The rigs are the Seadragon I and Seadragon II which are due for delivery from Jurong Shipyard in the first and fourth quarters of 2011.
The price tag includes project management for the remaining construction period, drilling and handling tools, spares, operations preparations and capitalized interest.

Seadrill has secured new bank debt to finance the investment. The two rigs will serve as security for the new debt.

The principal terms and conditions have been agreed and the debt will have a seven-year tenor and a 13-year repayment profile.

The Seadragon I is scheduled to start a five-year charter with Mexican state oil company Pemex from early 2011.

“However, due to postponed delivery the contract is subject to further discussions among the involved parties,” Seadrill said.

“The cash break-even cost per day for each rig including operating cost, tax, interest expenses and scheduled debt installments is expected to be around $385,000,” said Seadrill chairman John Fredriksen.

He added that Seadrill anticipates that the purchase of the two rigs including the agreed financing will strengthen the rig owner’s dividend capacity going forward.

“We expect the demand for ultra-deepwater units to strengthen over the next years,” said Seadrill Management chief executive Alf C Thorkildsen.

“This investment increases our exposure to this growing market segment at an acceptable price and a manageable risk.”

Seadrill said the rigs are based on the Moss Maritime CS50 Mk II design and belong to a high specification, new generation drilling units.

The DP 3 class rigs are equipped with NOV drilling equipment and have water depth capability of up to 10,000ft and total vertical drilling depth capacity of up to 35,000 feet.

They each have a single derrick with dual pipe handling and offline stand building capabilities providing for increased efficiency.

By Dale Wainwright in Singapore

[Jemplayer]

Dam with a break even of just short of $300k and the average day rate of what $500k+ thats a dam good investment.