Aquadrill Announces Sale of the Leo
London, United Kingdom, October 25, 2021 - Aquadrill LLC ("Aquadrill” or the “Company") has entered into an agreement for the sale of a semisubmersible drilling unit, the “Leo”, with a subsidiary of BW Energy (the “Buyers”) for USD 14 million.
The rig is expected to be repurposed as a Floating Production Unit, thereby removing the rig from the drilling market.
Under the terms of the agreement, if the unit is used to perform drilling services in the future, liquidated damages of USD 50 thousand for each day the unit is used to perform such services will apply, up to a maximum of USD 6 million. Additionally, if within the first two years of closing the unit is sold on terms which do not exclude the use of the unit for drilling purposes, and the resale price exceeds USD 15 million, the Buyers will be obliged to pay the Company 50% of the amount by which the resale price exceeds USD 15 million.
Certain pieces of capital equipment belonging to the unit have been excluded from the sale including but not limited to the BOP, top drive and travelling block, which will become part of Aquadrill’s capital spares inventory. In the event these capital spares are used for our existing fleet, the Company expects to realize approximately USD 7 million in savings vs purchasing equivalent replacement parts.
Closing of the transaction is subject to customary closing procedures and conditions.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodical reporting. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.