Seadrill Increases Ownership in AOD

Seadrill, an international offshore drilling contractor, has today acquired additional 1,127 shares of Asia Offshore Drilling Limited (AOD).

The shares were acquired at price NOK 28.70 per share. Following this acquisition, Seadrill will be the owner of 26,377,643 shares in the Company, corresponding to 65.94% of the total number of outstanding shares in the Company.

Seadrill is working to acquire all of the remaining shares of the Company. Upon the completion of the takeover Seadrill will expand its fleet by three new jack-ups currently owned by Asia Offshore Drilling. The rigs are under construction at Keppel FELS yard in Singapore and are expected to be delivered to the owner in 2013.

One of the rigs, the AOR-1 jack-up, has already been contracted by a “reputable client”. The three-year contract’s potential revenues are approximately US$197 million plus a US$39.5 million mobilization fee. The rig is scheduled to start operations in June 2013.

Seadrill yesterday reported third quarter 2012 net income of US$216 million.

Offshore Energy Today Staff, November 27, 2012