NODL: Expanding its fleet through exercising of the Bollsta Dolphin option
Northern Drilling Ltd. (“NODL” or the “Company”) today announces the exercise of its option to purchase the semi submersible rig Bollsta Dolphin for a total consideration of USD 400 million.
The Bollsta Dolphin is one of the world’s most sophisticated high-end floaters capable of operating in harsh environment areas and in ultra deep waters of up to 10,000 feet. The rig is currently under construction at Hyundai Heavy Industries Co. Ltd (“HHI”) with expected delivery in January 2019. The Company has the option to take earlier delivery of the rig should favorable contracts with start-up prior to January 2019 be secured.
NODL will make a pre-delivery instalment of USD 200 million with the remaining balance due at delivery. The Company will consider financing the take-out instalment with debt subject to market fundamentals and contracts secured.
The market for harsh environment capable rigs continues to show clear signs of improvement and stands out favorably in the drilling industry with higher utilization and better contract economics.
This has resulted in increased interest from several parties to acquire similar stranded harsh environment rigs at increasing prices. The Company therefore expects asset transactions to be concluded at prices that have a clear positive read-through for the Company’s fleet.
The Company will continue to pursue its strategy of opportunistically acquiring distressed drilling assets, including rigs for shallow and benign operations, balancing opportunism with commercial discipline.
Gunnar W. Eliassen, CEO
+44 (0) 74 6914 0012
Additional information about the Company can be found at: http://www.northerndrillingltd.com/
Forward Looking Statements
Matters discussed in this release may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, sometimes identified by the words “believes”, “expects”, “intends”, “plans”, “estimates” and similar expressions. The forward-looking statements contained in this release, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that that the assumptions underlying such forward-looking statements are free from errors, nor does the Company accept any responsibility for the future accuracy of the opinions expressed in the presentation or the actual occurrence of the forecasted developments. No obligations are assumed to update any forward-looking statements or to conform to these forward-looking statements to actual results.