Seadrill reduces stake

Norwegian firm sells 300 million shares in Sapurakencana

Seadrill, a Norway-based offshore deepwater drilling company, has sold 300 million shares in SapuraKencana Petroleum Bhd for about US$200mil (RM635.5mil).

KUALA LUMPUR: Seadrill, a Norwaybased offshore deepwater drilling company, has sold 300 million shares in SapuraKencana Petroleum Bhd for about US$200mil (RM635.5mil).

Following the transaction, Seadrill would hold 319.5 million shares in SapuraKencana, equivalent to 6.4% of the outstanding shares, Seadrill said in a statement posted on its website.

The book value of Seadrill’s total position in SapuraKencana was US$111mil (RM352.7mil) by the end of the first quarter 2012.

Seadrill said it was expecting to record a material accounting gain related to its position in SapuraKencana in the second quarter of 2012.

“We are very pleased with the development in our solid business venture with SapuraKencana.

“The venture, which initially was based on a joint ownership of five self-erecting tender rigs in Varia Perdana, has over time been developed to include a large ownership in Sapura Crest and a joint venture in the Brazilian offshore construction market, owning and operating three pipe-laying support vessels,” Seadrill chairman John Fredriksen said.

“We are particularly pleased with the way SapuraKencana has taken a leading role in the development of the offshore service industry in the Far East, and how this has been converted to profitable businesses to the benefit of shareholders,” he added.

Fredriksen said the sale of part of the shares in SapuraKencana was in line with Seadrill’s strategy to realise gains from its investment portfolio and to use these funds in funding future growth within its core drilling business and also to optimise dividend capacity.

“Seadrill will remain one of the largest shareholders in SapuraKencana and is fully committed to work together with our Malaysian partner to develop future joint-venture business,” he said.

The company added that it was likely that part of the proceeds from the sale of these shares would be used to equity-finance future jointventure activities, with a particular focus on expanding the drilling activities in Varia Perdana.

“Seadrill sees significant potential in the profitable position SapuraKencana has established as a leading integrated player in the oil producing and service market.”