Marine Log

March 23, 2006

SeaDrill orders fourth jack-up at Keppel

SeaDrill Limited ("SeaDrill") has today declared an option to build a fourth jack-up rig with Keppel FELS Ltd ("Keppel FELS") in Singapore. The rig will be of the KFELS B Class design, capable of operating in water depths of up to 400 feet and drilling depth of 30,000 feet.

The option was given to Odfjell Partners Ltd (Odfjell) when it ordered its first rig in March 2004. Odfjell placed an order for its second rig in March 2005. In mid 2005, SeaDrill acquired Odfjell Invest Ltd. and was given the right to exercise Odfjell's option with Keppel FELS.

The contract price for the unit is US $132 million and is composed of a basis price of USD 117 million, plus additional upgrades worth $15 million in order to make the unit to a sister rig of SeaDrill 1 (Hull B-277) presently under construction by the same yard. The delivery of the rig is expected to take place in the second quarter 2008.

SeaDrill Chairman John Fredriksen said in a comment: "We are delighted to have signed another new building contract with Keppel FELS. A competitive price, a good delivery position and a very capable yard, makes this into a solid financial deal. The ordering of the unit further strengthens SeaDrill / Smedvig ASA's position as a serious and committed owner and operator of modern high end drilling equipment".

Mr. Choo Chiau Beng, Chairman/Chief Executive Officer of Keppel Offshore & Marine Limited (Keppel O&M), said, "We are glad to participate in SeaDrill's vision of building a fleet of premium drilling rigs. We are committed to deliver on time and on budget the four KFELS B class jack-up rigs which have a proven track record of highly successful operation in different parts of the world."