Rig: West Polaris

Name West Polaris
Owner Seadrill Operating LP
Manager Seadrill Partners LLC
Rig Type Drillship
Sub Type Ultradeep Water
Jackup Type --
Max Water Depth (ft) 10000
Max Drill Depth (ft) 37500
Dimensions (ft) 748 x 137.8 x 39.5
Leg Length (ft) --
Competitive Yes

Current Location

Country Canary Islands (Spain)
Region North Africa

Drilling Equipment

Drawworks Type National Oilwell Varco
Drawworks HP 5750
Mud Pumps Type --
Top Drive National Oilwell Varco HPS-1000
Hookload Capacity (lbs) 2000000

Rig Construction Details

Rig Design Samsung
Rig Model S10000E
Year Built 2008
Country of Build South Korea
Yard Name Geoje (Koje) Shipyard
Group Yard Name Samsung Heavy Industries (SHI)

Rig Contract Details

Operating Status Ready Stacked
Operator --

Rig Images

News

17 Jun 2015

Seadrill sells 'West Polaris' to Seadrill Partners LLC

Seadrill Limited ("Seadrill") announced today that it has entered into an agreement with Seadrill Operating LP ("Seadrill Operating"), the 58% owned subsidiary of Seadrill Partners LLC ("Seadrill Partners"), pursuant to which Seadrill Operating will acquire all of the shares of Seadrill Polaris Ltd. ("Seadrill Polaris"), the entity that owns and operates the drillship, the West Polaris (the "Polaris Acquisition") from Seadrill. The Polaris Acquisition is expected to close within 7 days. The West Polaris is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard in 2008. The West Polaris is expected to carry out operations in Angola until the end of its contract with ExxonMobil in March 2018. The total consideration for the Polaris Acquisition is comprised of USD204 million in cash and USD336 million of debt outstanding under the existing facility financing the West Polaris. Seadrill Operating will fund the balance of the purchase price with a seller's credit of USD50 million due in 2021 that carries an interest rate of 6.5% per annum. Based on the assumed present value of the seller's credit, excess dayrate to be paid to the Company under the current drilling contract and assumed excess dayrate to be paid to the Company following the conclusion of the current drilling contract, the board of directors of the Company believes that the total value proposition of the Polaris Acquisition for Seadrill is approximately USD750 million. The West Polaris is currently contracted with ExxonMobil on a daily rate of USD653,000. Under the terms of the acquisition agreement, Seadrill Polaris has agreed to pay Seadrill any dayrate it receives in excess of USD450,000 per day, adjusted for daily utilization, for the remainder of the ExxonMobil contract. Assuming an average economic utilization of 95%, Seadrill will receive approximately USD60 million in cash per year from the current ExxonMobil contract. Additionally, Seadrill Polaris has agreed to pay Seadrill 50% of any dayrate above USD450,000 per day, adjusted for daily utilization, after the conclusion of the existing contract until 2025. As part of the acquisition agreement, Seadrill Operating's obligation to repay the USD50 million seller's credit due to Seadrill will be reduced if the average contracted dayrate under any replacement contract is below USD450,000 until the seller's credit's maturity in 2021. The amount of seller's credit due will be reduced until Seadrill Partners' effective dayrate is USD450,000 or until the seller's credit is reduced to zero. Should the average dayrate of the replacement contract be above USD450,000, the entire USD50 million seller's credit must be paid to Seadrill upon maturity of the seller's credit in 2021. By agreeing to sell the West Polaris to Seadrill Partners, Seadrill is able to realize USD204 million in cash upon closing of the transaction while retaining up to USD203,000 per day in revenues under the current drilling contract without the associated operating expense. Additionally, following the conclusion of the current contract, Seadrill will continue to have a degree of exposure to future dayrates by sharing revenues above USD450,000 per day with Seadrill Partners, again without the associated operating expense. The Board is pleased to announce a transaction that serves to realize value from multiple sources in addition to the sale price, while at the same time supporting an important associated company in its goals to increase distribution coverage, asset diversification and revenue backlog.

30 Dec 2014

Seadrill purchases 'West Polaris' drillship

Seadrill Limited ("Seadrill" ) has announced it has exercised a purchase option for the West Polaris, a 6th generation Ultra-Deepwater drillship, from Ship Finance International Limited ("Ship Finance"). The West Polaris was acquired by Ship Finance in 2008 and subsequently bareboat chartered to Seadrill with purchase options commencing in 2012. The purchase option price is USD456 million and total consideration payable to Ship Finance is USD108 million. The transaction will be executed as a purchase of shares in Ship Finance's asset owning subsidiary SFL West Polaris Limited, which is currently a consolidated entity in Seadrill. Seadrill does not expect any immediate material impact to its financial statements as a result of this transaction. The West Polaris is currently on a long-term charter with ExxonMobil in Angola, where it is contracted until February 2018.

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