West-Polaris

Bermuda-based Seadrill Limited (NYSE: SDRL), an offshore oil drilling company controlled by billionaire John Fredriksen, has agreed to sell its 6th generation drillship West Polaris to its own subsidiary in a deal that will generate $204 million in cash and $203,000 per day in revenue for the company. The West Polaris is a dynamically positioned ultra-deepwater drillship delivered from the Samsung Heavy Industries shipyard in 2008. The drillship is expected to carry out operations in Angola until the end of its contract with ExxonMobil in March 2018. Seadrill entered into the agreement with Seadrill Operating LP, the 58% owned subsidiary of Seadrill Partners, LLC, which will acquire all shares of Seadrill Polaris, the entity that owns the drillship. The total consideration for the acquisition is $204 million in cash and $336 million of debt outstanding under the existing financing facility.

Seadrill Limited announces it has exercised a purchase option for the West Polaris, a 6th generation Ultra-Deepwater drillship, from Ship Finance International Limited. The West Polaris was acquired by Ship Finance in 2008 and subsequently bareboat chartered to Seadrill with purchase options commencing in 2012. The purchase option price is US$456 million.