Seadrill was forced to issue a statement after rumors of a billionaire coming to its financial rescue set its shares soaring.
Bloomberg reported Seadrill’s chairman and largest shareholder, Jon Fredicksen, was posed to lend the firm $1.2billion as part of its restructuring plans.
The bumper sum “features in a proposal by a working group of fewer than 10 banks, said the people, who asked not to be identified because the talks were private”, according to Bloomberg.
However a Seadrill spokesperson said: “Seadrill Limited advises that it is aware of an article published by Bloomberg today regarding the company’s ongoing refinancing and recapitalization plans.
“We refer to our previously published communications in this regard. The company remains in discussions with its stakeholders regarding its refinancing and recapitalization plans and there are no material developments to disclose.”
Seadrill’s shares rose 22%, closing at 21.75 Kroner. It comes after the company has battled financial uncertainty, including various work be pulled.
Earlier this year, Seadrill was handed a contract cancellation for its West Pegasus drilling campaigns. The firm disputed the grounds for cancellation and was reviewing its legal options.
At the time, a spokesperson said: “During the second quarter of 2015 Seadrill signed a provisional commitment for a two year extension to the Contract with Pemex for the West Pegasus. In conjunction with the extension, the dayrate for the remaining term of the initial contract was reduced. The extension of the Contract was finalized during the first quarter of 2016.
“As part of this agreement, Seadrill and Seamex Limited (“Seamex”), our 50% owned joint venture with Fintech, agreed to reduce the dayrate on five jack-ups for a period of 365 days. The agreement to reduce the dayrates of the existing contracts was contingent upon final confirmation of the two year extension of the West Pegasus by Pemex management.
“In the event of termination, Seadrill and Seamex are entitled to recover the dayrate concessions as well as the demobilization for the West Pegasus. In addition, Seadrill will seek reimbursement of certain costs incurred in anticipation of the extension.”