SFL will acquire the harsh environment jack-up rig at $600m from Jurong Shipyard in Singapore and bareboat charter it to Seadrill's NADL for a period of 15 years.
NADL has sub-chartered the rig to ConocoPhillips Skandinavia AS for a period of five years with two extension options of two years each.
The construction of the rig, West Linus, is scheduled to be completed in December 2013 and it will be delivered to ConocoPhillips in April 2014.
“Ship Finance has in the recent months invested nearly $1bn in new assets which is a firm commitment to our continued growth strategy,” said Ole Hjertaker, ceo of Ship Finance Management.
The bareboat charter rate for West Linus over the first five years is approximately $220,000 per day and the average rate for the remaining 10-year lease period is about $115,000 per day, according to SFL.
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