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Tag: Seadrill Limited

  • Seadrill (SDRL) Stock Rises In Pre-Market Activity As Merger Discussions Emerge

    Seadrill (SDRL) Stock Rises In Pre-Market Activity As Merger Discussions Emerge

    The news of possible merger talks has caused Seadrill Limited’s (NYSE: SDRL) shares to show notable upward momentum. The price of SDRL shares was $39.50 as of the most recent pre-market check, representing a remarkable 12.28% rise.

    SDRL’s Possible Merger

    Bloomberg reported Wednesday that Seadrill is in the early phases of negotiations to merge with Transocean, a competitor in the offshore drilling sector. Despite continuous discussions on the potential merger’s structural components, a final decision has not yet been reached. Both companies are considering the possibility of continuing to run independently in the event that the merger does not succeed.

    Seadrill Forms a Strategic Partnership

    Seadrill has also recently partnered with Oil States International, Inc., a reputable provider of manufactured goods and services to the energy, military, and industrial sectors, in an attempt to improve its market position. The goal of this collaboration is to increase offshore Managed Pressure Drilling (MPD) operations’ efficiency and safety.

    The partnership intends to improve operational safety and standardize MPD systems in the offshore drilling industry by combining Oil States’ acclaimed MPD Integrated Riser Joint (IRJ) technology with Seadrill’s cutting-edge fleet of floating drilling boats.

    Advancements in MPD Technology

    The IRJ system, proven in the field, significantly improves the management of gas influx while minimizing nonproductive time (NPT) often associated with deepwater MPD operations. Unlike traditional equipment, the IRJ is engineered to optimize operational efficiency, featuring a compact design that facilitates safer handling and enhanced functionality.

    This innovative riser joint allows the drilling rig to remain positioned over the well during testing of the retrievable seals, ensuring that all components can undergo function and pressure testing while on deck.

    The advancements associated with the IRJ and the collaboration with Oil States solidify Seadrill’s commitment to delivering safe and efficient drilling solutions. By leveraging cutting-edge technology, Seadrill positions itself as a leader in providing streamlined and cost-effective deepwater MPD services to its customers.

  • SFL Company Ltd. (NYSE: SFL) disclosed forbearance arrangements with Seadrill Limited

    SFL Company Ltd. (NYSE: SFL) disclosed forbearance arrangements with Seadrill Limited

    SFL Company Ltd. (NYSE: SFL) declares that it has entered into forbearance arrangements with Seadrill Limited with regard to the lease arrangements and the related funding agreements for its 3 drilling rigs. Those forbearance arrangements will run until December 14, 2020, unless extended or terminated.

    In addition, Seadrill has confirmed that it had agreed to extend its forbearance arrangements with some other lenders with regard to its Senior Secured Credit Facility Agreements, Senior Secured Notes, and its Guarantee Facility Arrangement in terms of allowing more flexibility to discuss a thorough balance sheet settlement. Seadrill has recommended, such a settlement may require the use of a court-supervised insolvency procedure,

    The harsh environmental jack-up rig West Linus and the harsh environmental semi-submersible rig West Hercules remain on their separate exploration contracts from Seadrill to oil majors in the North Sea while negotiations with Seadrill and its shareholders are underway. For more than five years, the semi-submersible rig West Taurus has been owned by the lessee in layup.

    As already went public, when due in October and November, Seadrill’s inability to pay rent under the leases for our three drilling rigs represented a case of default under those leases and associated funding arrangements. An occurrence of a default under leasing agreements or similar financing agreements could lead to compliance by us or the relevant secured lenders unless cured or waived. SFL also entered into forbearance arrangements with these lenders, under the same conditions as Seadrill’s forbearance agreements with these lenders, to reduce the possibility of such a situation.

    At the forbearance duration, Seadrill would be allowed, from October until the conclusion of the forbearance period, using such funds earned from the charterers of certain platforms to cover running costs for those platforms. In return, SFL will receive, for the same duration, roughly 67 to 70 percent of the current contractual lease hires linked to West Hercules and West Linus. This is practically equal to the interest and amortization owing on these equipment-related insured bank loan facilities. Any over hire paid under the leases alluded to above will stay in the earnings accounts pledged to SFL by Seadrill.

    Although no guarantees can be offered as to the results of Seadrill’s restructuring, SFL continues to have a positive dialogue to pursue a long-term compromise with Seadrill and the related financing banks