Offshore drilling firm
) has inked a deal with subsidiary
Seadrill Partners LLC
) to sell West Auriga - a dynamically positioned 6th generation
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Per the agreement, SeaDrill Limited is selling the rig for a
consideration of roughly $797.0 million. The transaction, which
will likely be completed within 30 days, is dependent on some
necessary closing conditions.
In Oct 2013, the ultra-deepwater drillship was handed over to
), one of the world's largest energy companies. West Auriga is
now operating at a dayrate of $565,000 and will likely continue
operations at the Gulf of Mexico till Oct 2020 when the contract
is scheduled to end.
Seadrill Partners is planning to offer 10.4 million common units
to the public for financing the acquisition. To support the
funding, SeaDrill Limited will buy a minimum of $50.0 million
worth of common units at a price that will be offered to the
Hamilton, Bermuda-based SeaDrill Limited primarily renders
services related to offshore drilling activities to customers
worldwide. Currently, the company is operating roughly 69
drilling units. On Feb 25, 2014, SeaDrill Limited declared
fourth-quarter 2013 results. Earnings per share came at 49 cents,
which failed to beat the Zacks Consensus Estimate of 78 cents.
Significant hike in operating expenses hampered the results.
SeaDrill Limited currently holds a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the U.S. equity
market over the next one to three months.
Meanwhile, one can consider a better-ranked player in the oil and
gas drilling industry like
Helmerich & Payne Inc.
). Helmerich & Payne sports a Zacks Rank #1 (Strong Buy).