Drilling firm Seadrill has ordered a new ultra-deepwater drillship from South Korea's Samsung Heavy Industries for an estimated $600 million for delivery in the fourth quarter of 2014, it said on Monday, Reuters reports.
"The new ordering has been evaluated up against several M&A and asset proposals but the Board has concluded that organic growth through contracting new buildings at attractive prices is likely to give higher long-term return to shareholders," Seadrill Chairman John Fredriksen said in a statement.
Initial payments will be made using funds recently raised through a $1 billion bond issue, and the firm said it was "confident" its $20 billion order backlog can be financed without raising additional equity, it added.
All news