SeaDrill Ltd's Subsidiary Enters Sale and Leaseback Transactions with Ship Finance Totaling USD 600 Million for West Linus

SeaDrill Ltd announced that the company's subsidiary North Atlantic Drilling (NADL) and Ship Finance International Limited (Ship Finance) have signed an agreement on a combined sale and leaseback arrangement whereby Ship Finance will acquire the harsh environment jack-up drilling rig West Linus from a subsidiary of NADL. The West Linus is currently under construction at Jurong Shipyard in Singapore with scheduled delivery in December 2013. he total acquisition cost will be USD 600 million and the drilling rig will be chartered back to NADL on a bareboat contract for a period in excess of 15 years. NADL has been granted four purchase options, the first of which will occur after five years and the last at the end of the charter period. Ship Finance will also have an option to sell the rig back to NADL at the end of the charter period. NADL has sub-chartered the rig to ConocoPhillips Skandinavia AS (ConocoPhillips) for a period of five years with 2, two-year extension options. Expected delivery to ConocoPhillips is April 2014 and the rig will be at a mobilization rate from the delivery from the shipyard until commencement of the sub-charter. USD 195 million of the purchase price has been received by NADL in June 2013, and the remaining USD 405 million will be received on delivery from the shipyard in December 2013.