Prospector Offshore Drilling SA will sell two heavy-duty, harsh-environment jackups, Prospector 1 and Prospector 5, to subsidiaries of SinoEnergy. Wholly owned subsidiaries of Paragon Offshore Plc entered into a $300 million sale-leaseback financing facility with subsidiaries of SinoEnergy, Paragon said June 4.
The subsidiaries were acquired during Paragon’s absorption of Prospector Offshore Drilling SA. SinoEnergy is a private investment firm registered in the British Virgin Islands, Paragon said.
Prospector will enter into a five-year bareboat rental charter for the jackups.
Prospector 1’s bareboat charter fee is $71,000 per day through November 2016. Then it will become $42,000 per day. Prospector 1 is under firm contract until mid-September 2016, the company said.
Prospector 5’s bareboat charter fee is $71,000 per day through February 2018. Then it will also become $42,000 per day. Prospector 5 is under firm contract until mid-November 2017.
Prospector will receive about $292 million in net proceeds from the sale-leaseback, Paragon said.
The facilities are expected to fund by early third-quarter 2015. Funding is subject to customary conditions.
Standard-spec offshore drilling unit provider Paragon Offshore Plc is based in Houston.
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