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Friday, October 21, 2022
In a release, Seadrill Limited states that as previously disclosed, on 1 September 2022, it entered into a Share Purchase Agreement with subsidiaries of ADES Arabia Holding Ltd. (ADES) for the sale of the entities that own and operate seven jack-ups in the Kingdom of Saudi Arabia. Seadrill confirmed on October 18 that the Jack-up Sale has been completed pursuant to the SPA.
As the Jack-up Sale has completed, the AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda are now owned by ADES, and ADES employs the crews operating the rigs and holds the drilling contracts related to the rigs. The total consideration for the Jack-up Sale is USD 628 million in cash, subject to adjustment for working capital and other items, and reimbursement to Seadrill for any project costs spent in relation to the reactivation of the three stacked jack-ups, namely the West Ariel, West Cressida and West Leda (“Reactivation Rigs”). The consideration translates into approximately USD 100 million per rig on a ready-to-drill basis. The proceeds from the Jack-up Sale enable Seadrill to significantly de-leverage its balance sheet and to eliminate outstanding capital expenditure for the Reactivation Rigs.
Seadrill also announced on October 20 that it has entered into binding Share Purchase Agreements under which it will sell its entire 35% shareholding in Paratus Energy Services Limited (formerly Seadrill New Finance Limited) and certain other interests. Paratus Energy Services Limited is the entity through which investments in SeaMex Group, Seabras Sapura and Archer Ltd are held.
Completion of the Sale is subject to customary closing conditions, including approval of competition authorities in relevant jurisdictions, and is anticipated to occur within the fourth quarter of 2022 or early 2023.
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