Seadrill finalizes sale of seven jackups to ADES

Seadrill has completed the previously announced sale to ADES of the entities that own and operate seven jackups in Saudi Arabia. The AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda jackups are now owned by ADES, and ADES employs the crews operating the rigs and holds the drilling contracts related to the rigs. The total consideration for the sale is $628 million in cash, subject to adjustment for working capital and other items, and reimbursement to Seadrill for any project costs spent in relation to the reactivation of the West Ariel, West Cressida and West Leda, which are currently stacked.

Seadrill said in a statement that the proceeds from the sale will enable it to “significantly deleverage its balance sheet and to eliminate outstanding capital expenditure” for the stacked rigs.