- Seadrill Partners paid an implied purchase price of $1.24 billion for West Auriga.
- West Auriga only cost $600 million to construct.
- The rig is currently contracted to BP until October 2020. The present value of this contract at the time of the rig's acquisition was approximately $722.62 million.
- The purchase price looks far too high for just the BP contract.
- When we consider the rig's future cash flows after the BP contract ends then the price that Seadrill Partners paid looks reasonable.