Seadrill to sell three jack-ups to Shelf Drilling

West Triton is one of jack-ups Seadrill is selling to Shelf Drilling West Triton is one of jack-ups Seadrill is selling to Shelf Drilling

MAY 1, 2017 — John Fredriksen's Seadrill Limited today reported that it has reached an agreement with Dubai based Shelf Drilling Ltd to sell the jack-ups West Resolute (Marathon LeTourneau Super 116-C), West Triton (Baker Marine Class 375) and West Mischief (Marathon LeTourneau Super 116-E). for a total consideration of $225 million, subject to customary closing conditions.

The West Triton and West Resolute are scheduled to be delivered to Shelf Drilling by the end of May 2017 and the West Mischief during third quarter 2017 after completion of its current drilling contract with NDC in Abu Dhabi.

The total debt outstanding on these three units is $102 million providing excess sale proceeds of $123 million.

The carrying value of the three units totals $415 million. A loss on disposal of $190 million is expected to be realized for the first quarter of 2017.

Shelf Drilling, Ltd. said the purchase would increase its total shallow water rig count will increase from 37 rigs to 40 rigs and that it had financed the deal through a private placement of new Shelf Drilling common shares.

David Mullen, Chief Executive Officer, Shelf Drilling said: "This transaction reflects our ambition to be the leading jack-up contractor globally and is fully aligned with our fit-for-purpose strategy. All three acquired rigs are located in the Middle East, one of the key markets for Shelf Drilling. What's also important is that the deal extends our ability to offer more options to our customers, and I am confident that these rigs will secure employment with a number of near term opportunities that exist."

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