Mermaid Completes Exit from Asia Offshore Drilling

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AOD II - Image Credit: Seadrill
AOD II - Image Credit: Seadrill

Thai offshore service provider Mermaid Maritime has completed the previously proposed exit from Asia Offshore Drilling, a joint venture firm with drilling contractor Seadrill.

Earlier this month, Mermaid said it would exercise its put option and sell its 33.76% in AOD to Seadrill for $31.0 million. 

The company said it wanted to limit its exposure to the volatile offshore drilling market and to focus on its core business which is the provision of subsea and related services to the offshore oil and gas industry

In a statement on Monday, Mermaid said that it had received the cash, completed the disposal of AOD shares, and thus ceased to hold any shares in the drilling company.

Asia Offshore Drilling, now fully controlled by Seadrill, owns three 2013-built jack-up rigs, all of them on contracts with Saudi Aramco.

The recent oil price downturn has seen one rig (AOD II) suspended from operations from June 2020 for a period of up to 12 months. 

The contract has been extended for the suspension period, however, the day rate discount has been agreed for 2020 and 2021. Day rates have been lowered for the other two rigs AOD I, and AOD II, respectively.

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