SDRL - Seadrill Limited agrees to sell the ultra-deepwater drillship the West Auriga to Seadrill Partners LLC
Hamilton, Bermuda, March 11, 2014 -.Seadrill Limited (NYSE: SDRL) (the
"Company") announced today that it has entered into an agreement with Seadrill
Partners pursuant to which the Company will sell to Seadrill Capricorn Holdings
LLC, Seadrill Partners' 51% owned subsidiary ("Capricorn Holdings"), all of the
ownership interests in the entities that own and operate the drillship, the West
Auriga (the "Auriga Acquisition"). The Company owns the remaining 49% interest
in Capricorn Holdings. The Auriga Acquisition, which is expected to close
within 30 days, will be accomplished through a series of purchases,
contributions and assumptions of debt and is subject to the satisfaction of
certain closing conditions.
The West Auriga
The West Auriga is a 6th generation, dynamically positioned drillship delivered
from the Samsung shipyard to its current customer, BP, in October 2013. The
West Auriga is expected to carry out operations in the U.S. Gulf of Mexico until
the end of its contract in October 2020 at a dayrate of $565,000 per day,
excluding approximately $37,500 per day payable by the customer over the term of
the contract relating to mobilization, variation orders and other special and
standby rates.
The implied sale price of the Auriga Acquisition is $1.24 billion, less $443.1
million outstanding under the facility related to the West Auriga. Â In addition,
Capricorn Holdings intends to issue a $100 million zero coupon limited recourse
discount note to the Company that matures in September 2015. Â Upon maturity of
such note, Seadrill Capricorn Holdings LLC will repay $103.7 million to the
Company. Based on the Seadrill Partners' 51% ownership of Seadrill Capricorn
Holdings, its portion of the net purchase price after debt will be $355.4
million.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are
generally not historical in nature, and specifically include statements about
the Company's plans, strategies, business prospects, changes and trends in its
business and the markets in which it operates. In particular, statements
regarding the Company's ability to complete the Auriga Acquisition, its
financing of the Auriga Acquisition and projected increases in cash
distributions are considered forward looking statements. These statements are
made based upon management's current plans, expectations, assumptions and
beliefs concerning future events impacting the Company and therefore involve a
number of risks, uncertainties and assumptions that could cause actual results
to differ materially from those expressed or implied in the forward-looking
statements, which speak only as of the date of this news release. Important
factors that could cause actual results to differ materially from those in the
forward looking statements include, but are not limited to, the performance of
the drilling rigs in the Company's fleet, delay in payment or disputes with
customers, fluctuations in the international price of oil, changes in
governmental regulations that affect the Company or the operations of the
Company's fleet, increased competition in the offshore drilling industry, and
general economic, political and business conditions globally. Consequently, no
forward looking statement can be guaranteed. When considering these forward
looking statements, you should keep in mind the risks described from time to
time in the Company's filings with the SEC, including its Annual Report on Form
20-F (File No. 001-35704). The Company undertakes no obligation to update any
forward looking statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible for the
Company to predict all of these factors. Further, the Company cannot assess the
impact of each such factor on its business or the extent to which any factor, or
combination of factors, may cause actual results to be materially different from
those contained in any forward looking statement.
March 11, 2014
Questions should be directed to:
Rune Magnus Lundetræ: Chief Financial Officer
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Seadrill Limited via GlobeNewswire
[HUG#1768090]