SDRL - Seadrill Limited Sells The Tender Rig T-16 To Seadrill Partners LLC

HAMILTON, Bermuda, Oct. 11, 2013 (GLOBE NEWSWIRE) --
Hamilton, Bermuda, October 11, 2013 - Seadrill Limited has today entered into anagreement to sell the company that owns the tender rig T-16 to Seadrill PartnersLLC for a total purchase price of US$200 million, less approximately US$93million of debt outstanding under the credit facility secured by the T-16.Seadrill Partners will acquire the company that owns the T-16 in exchange forapproximately US$107 million in unregistered common units that Seadrill Partnerswill issue to Seadrill Limited. The number of common units to be issued toSeadrill Limited will be 3,310,622, at a price of US$32.29 which is based on theten-day volume weighted average closing price ending on October 10, 2013 forSeadrill Partners' common units. The transaction is expected to close withinOctober 2013.The T-16 commenced operations in September 2013 under a five-year contract withChevron in Thailand at an initial dayrate of US$115,500. The debt secured by theT-16 matures in December 2017 and has an interest rate of LIBOR plus a margin of3.25% per annum.FORWARD LOOKING STATEMENTSThis news release includes forward looking statements. Such statements aregenerally not historical in nature, and specifically include statements aboutthe Company's plans, strategies, business prospects, changes and trends in itsbusiness and the markets in which it operates. In particular, statementsregarding the Company's ability to complete the acquisition of the T-16 andprojected increases in cash distributions are considered forward lookingstatements. These statements are made based upon management's current plans,expectations, assumptions and beliefs concerning future events impacting theCompany and therefore involve a number of risks, uncertainties and assumptionsthat could cause actual results to differ materially from those expressed orimplied in the forward-looking statements, which speak only as of the date ofthis news release. Important factors that could cause actual results to differmaterially from those in the forward looking statements include, but are notlimited to the performance of the drilling rigs in the Company's fleet, delay inpayment or disputes with customers, fluctuations in the international price ofoil, changes in governmental regulations that affect the Company or theoperations of the Company's fleet, increased competition in the offshoredrilling industry, and general economic, political and business conditionsglobally. Consequently, no forward looking statement can be guaranteed. Whenconsidering these forward looking statements, you should keep in mind the risksdescribed from time to time in the Company's filings with the SEC, including itsAnnual Report on Form 20-F.The Company undertakes no obligation to update any forward looking statements toreflect events or circumstances after the date on which such statement is madeor to reflect the occurrence of unanticipated events. New factors emerge fromtime to time, and it is not possible for us to predict all of these factors.Further, the Company cannot assess the impact of each such factor on itsbusiness or the extent to which any factor, or combination of factors, may causeactual results to be materially different from those contained in any forwardlooking statement.This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.[HUG#1735059]
CONTACT: Seadrill         +47 51 30 99 00