Marine Log

April 20, 2006

SeaDrill reorganizes after Smedvig acquisition

The acquisition of Smedvig has provided John Fredriken's SeaDrill Group with substantial new resources--human as well as hardware.

The current CEO of Smedvig, Kjell E. Jacobsen, has been appointed chief executive of a newly formed management company, SeaDrill Management AS and Smedvig CFO Alf C. Thorkildsen has been appointed its CFO

Meantime SeaDrill subsidiary Smedvig Holding AS is to proceed with a compulsory acquisition of the remaining shares of Smedvig ASA and a delisting of the shares on the Oslo Stock Exchange.

The combined SeaDrill and Smedvig fleet totals nine jack- up drilling rigs (including five under construction), seven semi-submersible drilling rigs (including five under construction), three ultra-deepwater drillships (including two under construction), two FPSOs and 13 tender rigs (including two under construction).

The SeaDrill board has decided to organize future management of the group through two management centers, one in Stavanger, Norway and one in Singapore.

SeaDrill Management AS, has been incorporated to organize the management functions to be located in Stavanger. It will be responsible for the management of SeaDrill and the SeaDrill Group on a day-to-day basis. Overall responsibility will remain with SeaDrill's board and corporate headquarters will remain in Hamilton, Bermuda.

The Singapore management organization will be organized in the existing subsidiary SeaDrill Management (S) Pte. Ltd. This organization will be responsible for SeaDrill's jack-up fleet and the Smedvig tender rig fleet of Smedvig.

SeaDrill Chairman, John Fredriksen, said: "We are very pleased that Mr. Jacobsen and Mr. Thorkildsen have accepted to head the new group. By combining the dynamic and fast growing SeaDrill organisation with the highly competent, credible and well managed Smedvig organization we are putting together a unique service organization for our customers. We plan during the next few years to recruit more than 2,000 people on top of the 40,00 we have today. It is our hope that SeaDrill, by its commitment to invest in modern equipment and focus on quality operations, will be seen as one of the best places to work in the industry."