Business combination

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

On August 31, 2021, Seadrill Limited entered into a restructuring implementation deed (RID) with NSNCo and the JPLs and refinanced SeaMex senior secured bank debt by the issuance of new senior secured notes (the “New SeaMex Notes”).

On September 2, 2021, the parties entered into a share purchase agreement (“SPA”) to sell the assets of SeaMex out of provisional liquidation to a newly incorporated wholly owned subsidiary of NSNCo in return for the extinguishment of $0.4 billion of the various forms of debt

instruments owed to NSNCo, gross of expected credit loss allowances previously recognized totaling $65 million. On November 2, 2021 the SPA closed and NSNCo obtained the remaining 50% equity interest in SeaMex, resulting in the consolidation of SeaMex into NSNCo in a business combination.

We have used a convenience date for this transaction and concluded that SeaMex is consolidated into the Seadrill Group effective November 1, 2021. Prior to this date it was accounted for as a joint venture on the Seadrill consolidated Balance Sheet.

The following is a summary of SeaMex's identifiable assets acquired and liabilities assumed as at acquisition date:


(In $ millions)			As at acquisition
Carrying amounts of major classes of assets
Cash and cash equivalents			41
Restricted cash			21
Accounts receivable, net			316
Intangible drilling contracts			172
Drilling units			216




Other assets			17
Total assets			783
Carrying amounts of major classes of liabilities

Amounts due to related parties			133
Long-term debt			234

Other liabilities			88
Total liabilities			455
Net asset acquired			328

Prior to November 2021, 50% of the net income or loss from SeaMex was recognized as a share in results from associated companies in Seadrill's Consolidated Statement of Operations, and subsequently reclassified to results from discontinued operations. From November 2021 onwards, 100% of SeaMex's results from operations form part of Seadrill's consolidated results and have been reported as income from discontinued operations.

The following is a summary of SeaMex's operation results since the acquisition date included in the discontinued operations for the reporting period:


(In $ millions)			Period November 2, 2021 until December 31, 2021
Results from business combination
Operating revenues
Contract revenues			36
Total operating revenues			36
Operating expenses
Vessel and rig operating expenses			(25)


Selling, general and administrative expenses			(2)
Total operating expenses			(27)
Operating profit			9
Financial and non-operating items
Interest expense			(4)





Others			(1)

Total financial items			(5)
Income before tax			4
Income tax benefit			2
Income after tax			6