Drilling firm Seadrill has increased its ownership in Norway’s Sevan Drilling to just over 30% following a listing of new shares.
Sevan Drilling said yesterday it had raised NOK 987.5million through the over-subscribed private share placing.
The move also saw Seadrill take additional shares in the firm taking its ownership to 30.31% of Sevan’s capital.
Sevan said the cash raised is to be split between paying for deferred liabilities and capital spending, paying bank debt and for general use.
The placing still has to be approved by a general meeting, expected to be held in early February.
It follows Sevan falling into financial difficulties last year. It was recently given an extension to its existing loan agreements to allow it to carry out the share placing.
“The amendments to the bank facility, will allow Sevan Drilling to retain its low cost of debt,” said chief executive Scott Kerr.
“Combined with the proceeds from the private placement, Sevan Drilling’s current funding gap is resolved and the strengthened balance sheet increases our attractiveness as contractor with potential new clients.”
The firm has two rigs, the Sevan Driller and Sevan Brasil, and it working to complete two newbuilds, currently called Rig #3 and Rig #4.
Sevan said it was hopeful of getting a contract for the use of Rig #3 during the first quarter of this year.