Seadrill sells rig to Seadrill Partners

June 17 (Reuters) - Seadrill

* Seadrill Limited ( SDRL
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) agrees to sell the ultra-deepwater drillship the West Polaris to Seadrill Partners LLC ( SDLP
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)

* The total consideration for the Polaris Acquisition is comprised of $204 million in cash and $336 million of debt outstanding under the existing facility financing the West Polaris.

* Seadrill Operating will fund the balance of the purchase price with a seller's credit of $50 million due in 2021 that carries an interest rate of 6.5% per annum.

* The West Polaris is currently contracted with ExxonMobil on a daily rate of $653,000.

* Under the terms of the acquisition agreement, Seadrill Polaris has agreed to pay Seadrill any dayrate it receives in excess of $450,000 per day, adjusted for daily utilization, for the remainder of the ExxonMobil contract.

* Assuming an average economic utilization of 95%, Seadrill will receive approximately $60 million in cash per year from the current ExxonMobil contract.

* Additionally, Seadrill Polaris has agreed to pay Seadrill 50% of any dayrate above $450,000 per day, adjusted for daily utilization, after the conclusion of the existing contract until 2025.

* By agreeing to sell the West Polaris to Seadrill Partners ( SDLP
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), Seadrill is able to realize $204 million in cash upon closing of the transaction while retaining up to $203,000 per day in revenues under the current drilling contract without the associated operating expense.

* Additionally, following the conclusion of the current contract, Seadrill will continue to have a degree of exposure to future dayrates by sharing revenues above $450,000 per day with Seadrill Partners ( SDLP
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), again without the associated operating expense. Further company coverage: (Reporting By Oslo Newsroom)