HAMILTON, Bermuda, July 3, 2006 (PRIMEZONE) -- SeaDrill and Ship Finance International Limited have entered into a sale and leaseback transaction in which SeaDrill sells the jack-up rig SeaDrill 3 for a consideration of US $210 million. At the same time SeaDrill 3 has been leased back to SeaDrill for a 15 year period.
SeaDrill has in addition a right to repurchase the rig after three years or on five uneven anniversaries thereafter until the end of the charter. The exercise price after three years is US $135.5 million, decreasing to US $60 million at the end of the 15 year charter.
The annual lease payment for the first three years will total US $41.1 million. For the subsequent four year period, the annual lease payment will be US $18.8 million. For the remaining eight year charter period, the agreed annual lease payment is approximately US $14.9 million. In addition, Ship Finance will after year three receive five percent of the adjusted operating profit given that the operating profit has reached certain threshold levels.
CEO in SeaDrill Management AS Kjell E Jacobsen states: "This deal is an important part of SeaDrill's financing program that gives the Company an increased financial flexibility."
SeaDrill Limited Hamilton, Bermuda July 3, 2006