Seadrill Establishes An Independent Well Services Company

Seadrill establishes a separate entity for its well services activities in hopes of creating a large international well services company. Seawell Limited will be the name of the new company with Joergen Peter Rasmussen serving Chairman of the Board and Alf Ragnar Loevdal holding the Chief Executive Officer position of Seawell Management AS.

The core business for Seawell is platform drilling with engineering and well intervention services. The Platform Drilling and Engineering Division delivers production drilling and well maintenance services on 21 platforms, as well as drilling facility upgrading and modifications. The Well Intervention Division offers personnel and equipment packages for mechanical and electrical wireline services. The company employs 1,800 employees.

To set Seawell Limited on a stand-alone basis, new equity was raised through a private placement of 20 million shares for a price of NOK13.75 per share. Gross proceeds amounted to NOK $275 million or US $49.8 million). A total of 100 million shares will remain outstanding after the initial offering. Seadrill will remain an 80 percent shareholder in Seawell Limited.