Seadrill and SapuraKencana announced today they have entered into a US$2.9 billion sale and purchase agreement whereby SapuraKencana will acquire all of the tender rigs in Seadrill’s fleet except for the West Vencedor, T15, and T16, in addition to assuming 100% of Seadrill’s debt in the tender rig business which is estimated at USD $780 million.
Plans to execute this deal were announced last November.
John Fredriksen, Chairman, President and Director of Seadrill says in a comment,
“We are pleased to have reached an agreement with our long-term partner, SapuraKencana, regarding the sale of our tender rig fleet. We look forward to support the integration of the tender rig fleet and are excited to start a new phase of our long and profitable relationship. Seadrill is as a large shareholder of SapuraKencana and is excited to contribute building SapuraKencana into the leading offshore service provider in South East Asia. Seadrill will as stated before use the net proceeds from the transaction to continue to aggressively grow our modern ultra-deep-water and jack-up exposure.”
Seadrill will in a transition period in co-operation with SapuraKencana retain the management of all tender rigs that are in operation outside Asia. The agreed acquisition price includes future capital commitments for newbuildings T17, T18, and West Esperanza. The new building program will continue to be managed and supervised by Seadrill on behalf of SapuraKencana.
Seadrill has agreed to pay US$75 million to SapuraKencana at closing to compensate for cash flow from the tender rig business from February 8, 2013 to closing, netted off for lost interest income.
The transaction is expected to close by the end of April 2013.