Seadrill Executes Buy Option for the West Polaris

West Polaris, ultra-deepwater drillship. Photo: Seadrill
West Polaris, ultra-deepwater drillship. Photo: Seadrill

Seadrill (NYSE: SDRL) announced today it has exercised a purchase option for the West Polaris, a 6th generation Ultra-Deepwater drillship, from Ship Finance International Limited (NYSE:SFL). The purchase option price is US$456 million and total consideration payable to Ship Finance is US$108 million which SFL says they will “reinvest into new assets.”

Two other ultra-deepwater drilling rigs owned by SFL, the West Hercules and the West Taurus, are on currently on charter to Seadrill, and have purchase options exercisable in November 2016 and February 2017, respectively.

The West Polaris was acquired by Ship Finance in 2008 and subsequently bareboat chartered to Seadrill with purchase options commencing in 2012.

Seadrill shares are currently trading at $11.91 on the NYSE, down from a share price of over $40 in July.