Seadrill sells drillship to MLP Seadrill Partners
Seadrill Limited (Seadrill) announced today that it has entered into an agreement with Seadrill Partners pursuant to which the Company will sell to Seadrill Capricorn Holdings LLC, Seadrill Partners' 51% owned subsidiary (Capricorn Holdings), all of the ownership interests in the entities that own and operate the drillship, the West Vela (the Vela Acquisition). The Vela Acquisition, which is expected to close within 3 days, will be accomplished through a series of purchases, contributions and assumption of debt. The West Vela is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard to its current customer, BP, in November 2013. The West Vela is expected to carry out operations in the U.S. Gulf of Mexico until the end of its contract in November 2020. The implied purchase price of the Vela Acquisition is USD900 million, less USD433 million of debt outstanding under the existing facility financing the West Vela. Based on Seadrill Partners' 51% ownership of Capricorn Holdings, its portion of the net purchase price after debt will be USD238 million.