SDRL - Seadrill secures a five-year contract for the ultra-deepwater newbuild West Capricorn

Hamilton, Bermuda, October 7, 2011 - Seadrill has entered into a Memorandum of
Understanding with a major oil company for a five-year contract for operations
in North America with the ultra-deepwater semi-submersible rig West Capricorn.
The potential contract value for the firm five-year period is US$919 million,
which includes a US$30 million mobilization fee. The oil company has the right
to extend the contract term for two additional one-year periods.
 
West Capricorn is currently under construction at Jurong Shipyard in Singapore.
The unit will commence its transit to North America upon delivery that is
scheduled for late December 2011. Start-up operations are scheduled for May
2012. West Capricorn will be the fourth rig of the proven Friede & Goldman ExD
Millenium design that Seadrill has taken delivery of from the Jurong Shipyard
since 2008. Furthermore, the rig will be the first ultra-deepwater unit in the
industry that is outfitted with a 7-ram blowout preventer.
 
Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, says, "We
are pleased to have secured a long-term contract for one of our new rigs in one
of the most promising deepwater regions. The contract duration proves the
attractiveness of our modern fleet and offers strong earnings visibility for our
shareholders. Furthermore, it gives us the opportunity to have two sister rigs
working in the same region which provide for operational synergies related to
performance and costs."
 
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
 
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Source: Seadrill Limited via Thomson Reuters ONE
 
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