Seadrill Working Towards AOD Takeover

One of the world’s largest drilling contractors Seadrill Limited has today acquired additional 3,765 shares of Asia Offshore Drilling Limited (AOD).

The shares were acquired at a price of NOK 28.70 per share. Following this acquisition, Seadrill will be the owner of 26,376,516 shares in the Company, corresponding to 65.94% of the total number of outstanding shares in the Company.

The drilling contractor is working to acquire all of the remaining shares of the company. If the takeover is successful 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.

Offshore Energy Today Staff, November 7, 2012