SDRL- MLP and Seabras update

Mon, Apr 16, 2012 11:25 CET Report this content

Hamilton, Bermuda, April 16, 2011 - Seadrill Limited (the "Company") announced in the fourth quarter 2011 report and presentation that it considers a separate listing of its Brazilian deepwater operations ("Seabras") and the opportunity for establishing a master limited partnership structure (MLP).

The Board of Seadrill sees the establishment of a MLP as an important step forward in order to lower future financing costs and to increase dividend capacity. Seabras has completed the necessary corporate restructuring and received the required consents from Petrobras. Given the large potential upside of the MLP structure, the Board has decided to accelerate this project ahead of the Seabras listing. It is however the Board's clear intention to complete both projects as well as the listing of NADL before the year end.

The Board is currently evaluating several opportunities to increase Seabras activities prior to the listing. A separate organization to support such wider operations in Brazil is being established. This further highlights the benefit of somewhat postponing the planned listing of Seabras.

It should be anticipated that the new MLP structure will involve part ownership of 4 - 6 rigs fixed on long term contracts. Seadrill will initially seek to build the MLP with a combination of deepwater, tender and possible jack-up assets in order to reduce the risk for investors and to increase Seadrill's flexibility.


Contacts

Alf C Thorkildsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19

Esa Ikäheimonen
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19

This disclosure is for informational purposes and not an offer to buy or the solicitation of an offer to sell any securities.  In addition, the common shares subject of the potential future offering by Seabras have not been, and will not be, registered under the United States Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the United States Securities Act and applicable state securities laws.

This disclosure contains forward-looking statements.  Forward-looking statements are only predictions and are not guarantees of future performance.  Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors that may cause the actual results to be materially different from any future results expressed or implied in such forward-looking statements. The Company expressly disclaims a duty to update any of the forward-looking statements.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.