Sapura’s JV with Seadrill not impacted by Chapter 11 cases
Malaysian services provider Sapura Energy has clarified that its joint venture with Seadrill, Sapura Navegacao Maritima (SNM), is not impacted by the recent Chapter 11 cases filed by several Seadrill subsidiaries operating in Asia.
Namely, Seadrill said on Sunday that it had filed for bankruptcy protection for Seadrill GCC Operations, Asia Offshore Drilling, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited, and Asia Offshore Rig 3 Limited – jointly referred to as AOD Companies.
In a clarification to Bursa Malaysia on Tuesday, Sapura stated the Chapter 11 filing by Seadrill does not involve SNM or entities related to the corporate structure of the joint venture.
Sapura stressed that the filing has no financial impact on its business plans and financial strength.
SNM is the only joint venture between Sapura Energy and Seadrill. Headquartered in Rio de Janeiro, SNM is a subsea services operator in the Brazilian market, with a fleet of submarine service vessels providing support, installation, and flexible pipe laying expertise.
Sapura’s clarification was in response to a media report linking Seadrill’s Chapter 11 filing of its Asian units, to the Brazil-based SNM.
In the clarification, Sapura also explained that the filing has no effect on its contracts with Petrobras, which forms the main revenue for SNM; and does not trigger any cross default for the joint venture’s business financing.