Seadrill announces sale of Qatar Jack-Up Fleet for $338mn

Seadrill has entered into a definitive agreement to sell three jack-up rigs—the West Castor, the West Telesto, and the West Tucana (the Qatar Jack-Up Fleet)—along with its 50% equity interest in the joint venture that operates these rigs offshore Qatar to Gulf Drilling International (GDI) for $338mn in cash, it said on May 16.

The transaction, which is subject to certain conditions including approval or non-objection by the Qatar Financial Centre Authority and approval by the shareholders of GDI’s parent company, is expected to close early in the third quarter of 2024.

“Our divestiture of the Qatar Jack-Up Fleet and exit from the joint venture are consistent with our ongoing efforts to strengthen and simplify our business,” said Seadrill CEO Simon Johnson. “This move will allow us to focus on Seadrill’s core business: operating deepwater rigs across the Golden Triangle and similarly advantaged geographies.”

In conjunction with the transaction announcement, Seadrill’s board of directors has increased the company’s aggregate share repurchase authorisation. This allows Seadrill to repurchase up to an additional $500mn of its outstanding shares over a two-year period, commencing after the completion of the current share repurchase programme.