NADL -- New sale and leaseback transactions with Ship Finance totalling US$600 million for the West Linus

NADL -- New sale and leaseback transactions with Ship Finance totalling US$600 
million for the West Linus 
HAMILTON, BERMUDA -- (Marketwired) -- 07/01/13 --  North Atlantic
Drilling ("NADL") and Ship Finance International Limited ("Ship
Finance") today announce an agreement to 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. 
The  total acquisition cost will be US$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. 
US$195 million of the purchase price has been received by NADL in
June 2013, and the  remaining US$405 million will be received  on
delivery from the shipyard in December  2013. The  debt  financed 
portion  of  the total price will be US$475
million  in total, of
which US$70 million will be funded now, and US$405 million
at
delivery from the shipyard. 
The  bareboat charter rate paid  over the first five  years
(excluding the four-month  mobilization period)  will be 
approximately US$220,000  per day  and the average  rate  for  the 
remaining  10-year  lease  period will be approximately
US$115,000 
per day. The  purchase option price  after five years  is around US$
380 million. 
Due  to the features in the chartering  agreement, we expect the rig
to continue
to  be  recognized  as  an  asset  on  NADL's  balance 
sheet  based on US GAAP.
Consequently,  NADL does not expect  to
record a gain  from the sale of the West
Linus. 
NADL  is an offshore harsh environment drilling  company with focus
on the North
Atlantic basin. The company has nine drilling units in
the fleet, including five
semi-submersible,   a  drillship,  and 
three  jack-up  rigs.  Seadrill Limited
currently  owns 74% of the
outstanding  shares and the company  is listed on the Oslo OTC
exchange with a market capitalization of approximately USD 2 billion. 
This information is subject of the disclosure requirements pursuant
to section
5-12 of the Norwegian Securities Trading Act. 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: Seadrill Limited via Thomson Reuters ONE 
[HUG#1713224] 
Analyst contact
Rune Magnus Lundetrae
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19 
Media contact
Alf Thorkildsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19
 
 
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