Seadrill Secures Letter of Intent for Newbuild

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 $690m, $840m or $980m, 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 $20m 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.