Bermudian-based offshore drilling company Seadrill Limited has entered into agreements that it says contemplates a plan of reorganisation that will raise $350 million in new financing and reduce the company's liabilities by more than $4.9 billion.

The company said the plan of reorganisation provides a clear pathway for Seadrill to restructure its balance sheet with the support of the majority of its senior secured lenders.

Consummation of the plan of reorganisation is subject to a number of customary terms and conditions, including court approval.

Stuart Jackson, chief executive officer of Seadrill, said: "We are pleased to announce that we have reached a consensual deal with a large element of Seadrill's secured lenders that will pave the way for a significant balance sheet deleveraging.

“It has taken time to reach the right outcome but throughout the process we have maintained strong support from our creditors and we look forward to maintaining that as they become our shareholders as well as our lenders.

“I would also like to thank our employees, our customers and our suppliers for maintaining their focus on safe, efficient operations throughout this time.

“We should not lose sight of the fact that we collectively provide vital services in difficult circumstances on a daily basis.

“This dedication, coupled with our restructured balance sheet, will allow Seadrill to emerge from Chapter 11 as a stronger company and play its part in the necessary industry consolidation."

The company filed the plan of reorganisation, an accompanying disclosure statement, and related documents in the United States Bankruptcy Court for the Southern District of Texas and said it will proceed expeditiously to obtain Bankruptcy Court approval of the same.

Seadrill commenced Chapter 11 cases in Texas on February 10 under the section of the US Bankruptcy Code that covers court-supervised restructurings of businesses.

Seadrill said it is an offshore drilling contractor utilising advanced technology to unlock oil and gas resources for clients across harsh and benign locations across the globe.

It conducts its operations from shallow to ultra-deep-water environments.

The company operates 24 rigs, which includes drillships, jack-ups and semi-submersibles.