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Seadrill, Mermaid help raise $100m for AODSeadrill, 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.

Lee Hong Liang, Asia Correspondent

March 13, 2013

1 Min Read
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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.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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