Seadrill Ltd, the Bermudian-based offshore drilling company, has agreed to sell its interest in an offshore Qatar jack-up fleet in a deal worth $338 million.

Seadrill is to sell three jack-up rigs ― the West Castor, West Telesto and West Tucana ― and its 50 per cent equity interest in the joint venture that operates these rigs offshore Qatar to Seadrill’s joint venture partner, Gulf Drilling International.

The company said the transaction was subject to certain conditions, including approval or non-objection of the Qatar Financial Centre Authority and approval of the shareholders of GDI’s parent company, and is expected to close early in the third quarter of this year.

Simon Johnson, the president and chief executive officer, said: “Our divestiture of the Qatar jack-up fleet and exit from the joint venture are consistent with our ongoing efforts to strengthen and simplify our business and will allow us to focus on Seadrill’s core business: operating deep water rigs across the Golden Triangle and similarly advantaged geographies.”

He added: “We believe that our strengthened liquidity position upon completion of the jack-up sale, coupled with our conviction in the deepwater floater market outlook and Seadrill’s competitive positioning within it, supports the expansion of our share repurchase programme.”

Concurrent with announcement of the transaction, Seadrill revealed that its board of directors had increased the company’s aggregate share repurchase authorisation, allowing the company to repurchase up to an additional $500 million of its outstanding common shares over a two-year period, commencing after the current share repurchase programme was completed.