Seadrill sells three rigs for almost NOK 2 billion

Photo: SeadrillPhoto: Seadrill

Seadrill sells rigs to Shelf Drilling

John Fredriksen crisis struck Seadrill sells three rigs for a total of 225 million USD to the Dubai-based company Shelf Drilling.

The jack-up rigs West Triton and West Resolute will be handed over to the Shelf Drilling already at the end of the month, while West Mischief be delivered during the third quarter after the current contract with NDC in Abu Dhabi has been completed, Seadrill writes in a stock exchange announcement.

The book value of the rigs is $415 million. The sale entails a loss of 190 million dollars that is expected to be realized in the first quarter of 2017.

Seadrill delivered a weak result for the fourth quarter last year, and the specter of bankruptcy has hung over the rig company for a long time.

In the quarterly report published in late February, the company announced that it is likely that major changes in loan agreements with banks will be necessary to raise new capital.

Seadrill conducted major cost reductions during the previous year. The number of employees was slimmed down from a scant 7.000 to 5.271.

The company said then that they had reached the minimum number of employees needed to run the company safely and effectively.

In early April, principal owner, John Fredriksen, admitted that the company has not been well enough prepared for the sharp drop in oil prices. The company stated then that it would not complete a rescue plan before July 31. The aim for the plan was 30 April.

© NTB Scanpix / Norway Today