Seadrill sells rigs for USD 225 million

John Fredriksen's Seadrill has entered a deal with Shelf Drilling to sell three rigs for a total of USD 225 million, announces the drilling company.

Photo: Seadrill

Drilling company Seadrill, owned by Norwegian shipping magnate John Fredriksen, is selling three of the company's jack-up rigs for a total of USD 225 million (EUR 206 million), according to a press release from the company.

The buyer is Shelf Drilling, which is taking over the jack-up rigs West Triton, West Resolute, and West Mischief. Two of the rigs are expected to be delivered as early as the end of May, while West Mischief is planned for delivery during the third quarter of this year, after completing its current contract with NDC in Abu Dhabi.

The rigs bear outstanding debt for a total of USD 102 million, meaning that the sale will give Seadrill excess sales proceeds of USD 123 million, according to the announcement. Seadrill also states that the carrying value of the three rigs amounts to USD 415 million, meaning the company expects a loss on disposal of USD 190 million in the first quarter of 2017.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from EnergyWatch

Siemens Gamesa to squeeze GE's flagship out of US market

The ongoing patent lawsuit between GE and Siemens Gamesa stands to greatly backfire for the US giant, which could force players such as Ørsted to find new offshore wind turbines. The power company itself claims this risks leading to ”potentially irreversible” delays on a gigawatt-scale project.

Norway plans to control hydro to safeguard power supply

With the country’s hydroelectric reservoirs now at low levels after a dry spring, Norwegian policymakers consider reducing electricity export to Europe, but any move to do so, barring emergency, must adhere to single energy market regulations, says interest group.

Further reading

Related articles

Latest News

See all jobs