Clifford Chance

Clifford Chance advises SapuraKencana Petroleum on the integration of its tender rig business with Seadrill's tender rig business in a transaction with an enterprise value of US$2.9 billion

Leading international law firm Clifford Chance has advised SapuraKencana Petroleum Berhad on the integration of its tender rig business with that of Seadrill Limited for an enterprise value of US$2.9 billion. The parties entered into a non-binding memorandum of understanding to combine and integrate both companies' tender rig businesses, creating the world's leading tender rig operator.

This transaction is one of the largest M&A transactions in south east Asia this year (top five according to Bloomberg's 3Q 2012 South East Asia M&A report).

SapuraKencana will take over the rigs under the new business structure. The 15 operating rigs to be acquired include an additional three units currently under construction. The operating rigs are currently contracted under long-term fixed price contracts with companies including Chevron, Shell, PTT EP and Petronas Carigali.

"We were very pleased to assist SapuraKencana on this transformational deal which creates a strategic platform to create the first highly diversified and leading offshore services provider in Asia" said Singapore-based Corporate partner Lee Taylor, who led the Clifford Chance team on the deal. "Asian firms are increasingly looking at consolidation strategies as a platform for growth. They have bold plans to lead both in Asia, and globally."

Lee was assisted by counsel Melissa Ng and associate Danielle Wu.

SapuraKencana Petroleum is one of the world's largest integrated oil and gas services and solutions providers based in Malaysia with operations in over 20 countries.

Seadrill is a leading offshore deepwater drilling company operating a fleet including semi-submersibles, deepwater drillships, jack-ups, semi-tender rigs and tender rigs.

Clifford Chance advises SapuraKencana Petroleum on the integration of its tender rig business with Seadrill's tender rig business in a transaction with an enterprise value of US$2.9 billion