KUALA LUMPUR: SapuraKencana Petroleum Bhd and Seadrill
Ltd will combine and integrate their tender rig businesses, providing a strategic platform to create the first highly diversified and leading offshore services provider in Asia.

In a statement today, SapuraKencana said its enlarged tender rig business will comprise 16 tender rigs, five of which are 51 per cent-owned and managed through its joint venture with Seadrill, namely Varia Perdana Sdn Bhd and Tioman Drilling Company Sdn Bhd.

"Another five units are under construction, three of which will be acquired through the proposed transaction and are expected to be delivered next year (Newbuilds).

"In addition, we will also be offered the right to manage three tender rigs which are not part of the proposed transaction, namely West Vencedor, T-15 and T-16, which are currently either owned or will be owned by Seadrill Partners LLC," it said.

SapuraKencana will take over the rigs, including the full tender rig organisation, for an enterprise value of US$2.9 billion.

"The enterprise value includes approximately US$363 million in remaining capital expenditure, linked to the Newbuilds and all the debt in the tender rig business, including existing bank facilities that are expected to be approximately US$800 million as at Dec 31 this year," it said.

The group said Seadrill will receive a minimum of US$350 million in new shares of SapuraKencana to further support this position, thus increasing its voting interest to approximately 13 per cent.

"The balance will be financed through a mix of external borrowings, a seller's note issued to Seadrill amounting to US$187 million, internally generated funds and equity," SapuraKencana said. -- BERNAMA