Fossil Energy – Purchase Agreement
Seadrill has entered into a binding Share Purchase Agreement (SPA) with subsidiaries of ADES Arabia Holding to sell the legal entities that own and operate seven jack-ups in the Kingdom of Saudi Arabia.
The total consideration for the jack-up sale is USD 628 million in cash, subject to adjustment for working capital and other items, and reimbursement to Seadrill for any project costs spent at the time of closing in relation to the reactivation of the three stacked jack-ups, namely the West Ariel, West Cressida and West Leda. This translates into approximately USD 100 million per rig on a ready-to-drill basis.
The proceeds from the jack-up sale enable Seadrill to significantly de-leverage its balance sheet and to eliminate outstanding capital expenditure for the reactivation rigs.