Seadrill Takes $463 Million Impairment on Archer Investment

Seadrill Ltd. (SDRL), the oil-rig operator whose largest owner is billionaire John Fredricksen, will take a $463 million non-cash impairment charge on its investment in Archer Ltd. (ARCHER) for the fourth quarter of 2011.

Archer contributed $44 million to net income for the full year, reflecting “deconsolidation profits” and the impairment charge, Seadrill said in a statement. The Hamilton, Bermuda- based rig company will release quarterly results on Feb. 29.

Archer shares have fallen 58 percent in 12 months, eroding the value of Seadrill’s 39.94 percent stake in the oilfield- services provider. The slump coincides with a push by Archer’s Chief Executive Officer Jorgen Rasmussen to make acquisitions, including Great White Energy Services Inc. last August.

“Seadrill is, as a major long-term owner, clearly disappointed in the recent developments in Archer,” the company said in today’s statement. Seadrill expects management changes to drive a recovery in Archer’s share price, it said.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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