Seadrill has been awarded a letter of intent by an E&P operator in the Gulf of Mexico for the semi-submersible drilling rig West Sirius (Jurong 1). The contract has a firm duration of four years with the option for the operator to extend the contract to five or six years. Estimated contract value is approximately US$ 690 million, US$ 840 million or US$ 980 million, including mobilization, for the four, five or six year alternatives respectively. West Sirius is currently under construction at Jurong Shipyard in Singapore and is scheduled for delivery in the second quarter 2008. To further enhance the drilling efficiency and the quality of the rig for operations in the Gulf of Mexico an additional investment of US$ 20 million will be made in this unit.
The letter of intent is subject to agreement of final contractual terms and conditions as well as the approval of the Board of Directors of the operator.
Analyst contact: Jim Dåtland, Vice President Investor Relations +47 51 30 99 19
Media contact: Kjell E Jacobsen, Chief Executive Officer +47 51 30 99 19
SeaDrill Limited Hamilton, Bermuda September 7, 2006