News, Oil & Gas

Seadrill considers move from Norway

The Board of Seadrill has announced plans to implement a new management structure to ensure continued safe and efficient operations and support for its global strategy.

Since acquiring Smedvig ASA in 2006 Seadrill has operated its management service company, Seadrill Management AS out of Stavanger, Norway. Globally the company has established strong regional operational centers with more than 400 people employed onshore in Houston, Rio, Singapore, and Dubai.

In June 2012, North Atlantic Drilling Limited was separated from Seadrill Management, to create an operational centre for the North Atlantic, managed out of Stavanger.

Seadrill says in a press release that as a direct consequence of these changes, the Board has reviewed the future management structure. Two areas for consideration have resulted from this process:

Firstly, the company can further improve its efficiency by reducing the size of the Seadrill Management and by moving several of the functions to the operating regions.

Secondly, Seadrill Management’s location in Stavanger may constrain Seadrill’s aggressive growth plans, for which access to qualified personnel is critical. Furthermore, the Norwegian cost level and distance from Seadrill’s core markets makes travel and logistics cumbersome when managing world-wide operations.

As such, the Board has decided to explore establishing a new management service function in an alternative location. Several locations including London, Dubai, Singapore and Houston are under consideration.

The press release states that a final decision regarding the location of the new office can be expected before year end.