Boston, MA 09/22/2014 (wallstreetpr) – Seadrill Ltd (NYSE:SDRL) announced that Tor Olav Troeim will not participate for re-election to the Board of Directors. He wants to shift his focus purely on the development of Golar LNG. Troeim has played an important role in making Seadrill a leading offshore drilling contractor company of the world.
Troeim is better known as the right-hand man of John Fredriksen, who owns 24% stake in the company. Fredriksen is one of the biggest investors in Seadrill. Troeim also owns 2.64 million shares in Seadrill. Following the news, Seadrill Ltd (NYSE:SDRL)’ stock price dropped more than 6% on Friday’s trading session.
The surprise element
Troeim said in July that he would not be a part of the boards of several other companies of Fredriksen. He left the boards to invest his energy, resources and efforts on fewer investments. However, at that time Troeim said that he will stay on Seadrill Ltd (NYSE:SDRL)’s board of directors. Now, the news of leaving Seadrill board came as a surprise for the market. Troeim has worked with Fredriksen since the 1990s. His efforts are praiseworthy in turning Seadrill from a small rig company into a leading firm in the oil sector.
Fredriksen to stay
John Fredriksen, Chairman of the Board, said that his stake in the company is a long term investment, and he has no plans of divestment in the near future. Investors can stay assured of his commitment to rig company. Seadrill Ltd (NYSE:SDRL)’s Board has worked hard to create an independent and strong management team. The existing board has an efficient team with excellent leadership skills required to achieve strong results in the future.
The present conditions might be challenging, but the long-term fundamentals of the industry remains intact. All the oil companies are working to reduce spending as the rig sector is facing key economic challenges. Also, international sanctions against Russia are worrisome for Seadrill as it causes a threat to its partnership with oil producer Rosneft.