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Seadrill, Mermaid help raise $100m for AOD

Seadrill, Mermaid help raise $100m for AOD
Singapore: Seadrill and Mermaid Maritime have invested in a $100m share issue by Asia Offshore Drilling (AOD) to fund its new build programs and for general corporate purposes.

The issuance of 20m new shares at a subscription price of $5 per share will see Seadrill and Mermaid own 66.18% and 33.76% of AOD respectively.

With Seadrill and Mermaid having a total ownership of 99.94% of AOD, the AOD board will consider delisting from the Oslo Stock Exchange in the near future.

“The subscription represents Mermaid's continued confidence in the long term success of AOD given the market outlook for high specification jack-up rigs,” said Mermaid, an affiliate of Thoresen Thai Agencies.

“The strategic investment and management by Seadrill of AOD is expected to be beneficial to Mermaid by providing AOD with a strong platform to develop its business further through Seadrill's strong competitive position in the global offshore drilling industry,” it added.

AOD projected that overall demand for jack-up rigs globally has improved recently and demand for particularly premium jack-up rigs has remained strong in all relevant regions.

Prospects for the rig market remained positive in 2013 in terms of rig demand, utilisation rates, contract duration and day rate levels, the company believed.