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January 6, 2006

SeaDrill won't make offer for Smedvig
John Fredriksen controlled SeaDrill Limited said today that it is not proceeding with a planned voluntary offer for Smedvig ASA.

SeaDrill sought to establish whether or not it was possible to gather a satisfactory level of pre-acceptances for the offer, which would have been made subject to a total acceptance level of more than 50 percent of the Smedvig shares.

SeaDrill says that although many of the larger shareholders supported this initiative, it has concluded that there was not adequate support from a sufficient number of shareholders.

In a separate announcement, SeaDrill said that its boardl has today accepted an offer to sell the company's position in Ocean Rig ASA. The transaction will generate a profit of approximately $80 million to be recorded in Q1 2006.

The proceeds from the sale, estimated to be approximately $298 million will be used to expand SeaDrill's own business including further acquisitions as well as capital reserved for financing part of the company's $1.5 billion fixed price newbuilding option program.