February 11, 2021 - Hamilton, Bermuda
Northern Ocean Ltd. ("NOL") announces that it has reached an agreement in
principle with Seadrill Limited ("Seadrill") to settle outstanding balances.
Upon concluding the settlement, NOL is expected to be well positioned to
continue operations on its two high specification harsh environment drilling
rigs in the North Sea.
The settlement payments will be completed in two parts. Firstly, NOL will make
certain quarterly instalment payments with the final payment due December 31,
2021. Total payments by December 2021 are expected to be approximately USD 45
million, including management fee and other adjustments. Secondly, Seadrill will
retain the net earnings generated under the West Bollsta contract from
commencement October 6 2020 and up until March 1, 2021, including payments for
client rebills and modifications.
After March 1, 2021, NOL is expected to retain the net earnings from the West
Bollsta contract and an operating structure similar to the West Mira is expected
to be implemented, which includes consolidation of the West Bollsta drilling
operations in NOL group reporting.
The settlement is subject to several conditions, including amendments from its
secured lenders which is expected to include amortization relief and maturity
extensions. The settlement is also conditional upon Seadrill obtaining approval
by the bankruptcy court under their Chapter 11 protection in the US.
In connection with the settlement NOL has committed to raise USD 30 million of
Additional information about the Company can be found at: www.northernocean.no
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.