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July 22, 2005

Fredriksen's SeaDrill takes chunk of Indonesian driller

John Fredriksen's SeaDrill Limited is buying a large chunk of Indonesia's largest onshore and offshore drilling contractor.

SeaDrill says it has today entered into agreements with an investment company to purchase between 32% and 37% of the enlarged share capital of PT Apexindo Pratama Duta Tbk for a maximum investment amount of US$ 65 million, pursuant to the latter's upcoming rights issue plan.

SeaDrill will, as part of the agreement, take over and subscribe for a majority of the rights in the rights issue. Apexindo will issue 837,600,000 shares in the rights issue resulting in 2,582,600,000 shares outstanding post rights.

In addition, SeaDrill and Apexindo have signed a Memorandum of Understanding to enter into an agreement enabling SeaDrill to use Apexindo's services to market and operate SeaDrill's offshore rigs in the Middle East and Asia, with main focus on the Indonesian market.

SeaDrill has accumulated a substantial fleet of high spec jack-up drilling rigs including a total of four jack-up rigs presently under construction in Singapore. Apexindo has a 20-year track record of operating rigs safely and efficiently for international oil companies.

SeaDrill Chairman John Fredriksen says: "We are very pleased with this investment which gives us a strategic position in an well established drilling contractor in the Far East. With one new build high spec jack-up rig presently under construction in Singapore, another high spec jack-up rig presently employed with StatOil, four advanced spec swamp barges working for TotalFina Elf and 11 land rigs, we feel that the investment includes instant value as well as significant upside. The strategic partnership which gives SeaDrill access to Apexindo's strong marketing and operational management further enhances the quality of this deal. Experienced management and a high quality operation will be increasingly important as the drilling industry is running at full utilization."

SeaDrill is a Bermuda-based company established in 2005 with an offshore drilling fleet consisting of three jack-ups rigs, two FPSOs, four new build jack-up rigs and one new build semi-submersibles. The company has further options for one new build jack-up rig as well as one more new build semi-submersible. SeaDrill also holds a 25 % ownership of Ocean Rig, an offshore drilling company listed in Oslo. Ocean Drill owns two of the most advanced harsh environment deepwater semi-submersible drilling rigs in the world. SeaDrill trades on the over-the-counter exchange in Oslo and is expected to list its shares on the Oslo Stock Exchange in the second half of 2005.

The market capitalization of SeaDrill, as of July 22, 2005, is approximately US$ 1.2 billion.

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