Seadrill Partners LLC - a subsidiary set up by Norwegian
oilfield service firm
Seadrill Limited
(
SDRL
) - announced the filing of registration statement for an initial
public offering (IPO) of its common units with the Securities and
Exchange Commission.
Seadrill Partners expects to raise up to $225 million through the
offering but neither did it disclose the number of units to be
offered nor the price range for the offering. The company aims to
utilize the proceeds from the offering to buy stakes in Seadrill
Operating LP and Seadrill Capricorn Holdings LLC from the parent
company.
Seadrill Partners - which will own, operate and purchase offshore
drilling rigs via long-term contracts - intends to be listed on the
New York Stock Exchange under the ticker name 'SDLP'.
The start-up fleet of Seadrill Partners will likely comprise two
semi-submersible rigs (West Capricorn and West Aquarius), one
drillship (West Capella) and one tender rig (West Vencedor). The
company's drillships are contracted by oil biggies
Chevron Corporation
(
CVX
),
Total S.A.
(
TOT
),
BP plc
(
BP
) and
Exxon Mobil Corp.
(
XOM
).
Based in Hamilton, Bermuda, Seadrill Limited renders offshore
drilling services, which include drilling, completion, and
maintenance of offshore wells; production drilling and well
maintenance; and well services to customers worldwide. As of
June 30, 2012, the company's fleet included 43 offshore drilling
units and 18 additionally units under construction.
Although the offshore drilling industry fundamentals and outlook
remains attractive, owing to greater exploration activities and
increased spending, we remain apprehensive that the company's
performance may face a number of headwinds, including commodity
price fluctuation, geopolitical risk, competition, the emergence of
new technology and changes in economic conditions.
Seadrill Limited retains a Zacks #3 Rank, which is equivalent to a
Hold rating for a period of one to three months.
BP PLC (BP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
SEADRILL LTD (SDRL): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
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