The West Polaris drillship will be sold when Seadrill Operating LP will acquire all shares of Seadrill Polaris Ltd., which owns it, parent company Seadrill Ltd. said June 17.
West Polaris is a sixth-generation ultradeepwater drillship currently contracted to ExxonMobil in Angola at a US$653,000 day rate under a contract that expires in March 2018. Seadrill Polaris will pay Seadrill any day rate more than US$450,000 for the remainder of the ExxonMobil contract. Half of any day rate above US$450,000 will be given to Seadrill after the contract concludes, until 2025.
The board of directors estimates the total value of the deal at about US$750 million. Of that amount, US$204 million is in cash, and US$336 million is outstanding debt under the facility financing West Polaris. The transaction is scheduled to close within one week, Seadrill added.
The transaction will increase distribution coverage, asset diversification and revenue backlog.
Seadrill Ltd. is based in Hamilton, Bermuda.
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