Seadrill Partners File Plans for IPO

Seadrill Partners has filed plans for an IPO estimated at up to $225 million. The limited liability company was formed by Norwegian oil-services company Seadrill to own, operate and acquire offshore drilling rigs.

Seadrill Partners said it will use the proceeds to buy from Seadrill Ltd. interests in Seadrill Operating LP and Seadrill Capricorn Holdings LLC, which own and operate Seadrill Partners’ offshore drilling rigs. After the planned offering, Seadrill Partners said it will own a 30% stake in Seadrill Operating and a 51% stake in Seadrill Capricorn Holdings.

The company said its drilling rigs are under long-term contracts with major oil companies, such as Chevron, Total, BP, and ExxonMobil, with an average remaining term of 3.1 years as of June 30, according to its regulatory filing. Seadrill Partners said its profit rose 5.6% to $93.9 million as revenue increased 11% to $275.2 million for the six months ended June 30.

The company has applied to list its common units on the NYSE under the symbol SDLP. Seadrill Ltd. reported last month its second-quarter earnings fell 14% as higher operating expenses masked the company’s 13% rise in revenue.