SeaDrill declares option

Norwegian oil rig firm SeaDrill has declared its option to build a second semi-submersible ultra deepwater drilling rig with Daewoo Shipbuilding in Korea. The rig is of the design GVA-7500-N and is fully capable of operating in harsh environment in water depth up to 10,000 feet.

The contract price for the unit which includes some extra upgrades versus the first unit is approximately $495 million out of which only 30% of the contract price is payable prior to delivery of a fully operational unit. The price is based on a full turn-key delivery including an extensive testing programme, 7,500ft of riser, a 15k BOP and a full mooring system.

Seadrill is also in the news following a bid for control of oil driller Smedvig ASA after making an offer valuing the company at about $2.24 billion. “Seadrill is very pleased to announce that it, based on acceptances received under the voluntary offer on Smedvig, is controlling more than 50% of the A-class shares and therefore more than 50% of the total number of votes in Smedvig,” it said in a statement.

The bid challenged the position of U.S. oilfield services group Noble Corp. which last month bought nearly 30% of Smedvig’s stock. Seadrill, whose main owner is Norwegian shipping tycoon John Fredriksen, has snapped up shares in several rival rig firms in recent months amid high oil prices, leading a wave of merger and acquisition activity in the fragmented Norwegian sector.

Smedvig said that settlement for the shares was expected to take place on Jan. 25.

Under Norwegian stock market rules, Seadrill is now obliged to make a new, identical offer to Smedvig shareholders who did not accept. The rules state that any company surpassing 40% of the stock in another firm has to bid for the rest. Seadrill extended the offer period by two days after struggling to make the 50% level it had set as its goal by the original Wednesday deadline.