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Marine Log

May 2, 2007

Seadrill orders another deepwater semi

Seadrill has today entered into a turnkey contract to build another ultra-deepwater semi-submersible drilling rig at Singapore's Jurong Shipyard a wholly-owned subsidiary of SembCorp Marine.

The turnkey contract has a net total project value of US$531.5 million with scheduled delivery of the unit in April 2010.

The rig is based on the Friede & Goldman (F&G) design and is similar to the two units Seadrill already has under construction at the Jurong Shipyard.

The new semi-submersible rig will be dynamically positioned and capable of operating in water depths up to 10,000 feet in challenging deepwater areas such as the Gulf of Mexico, offshore Brazil and West Africa. The unit will have 18,000 square feet of usable deck space and 7,000 metric tons of variable deck-load.

Mr Kjell E Jacobsen, Chief Executive Officer of Seadrill Management AS said, "We have now secured employment for five of our eight deepwater newbuilds under construction. Furthermore we are in advanced discussions regarding the remaining units and are optimistic that contracts can be secured over the next two quarters. The decision to add another deepwater newbuild to the existing construction program is based on the continued strength of the offshore drilling market, the return that these investments are expected to deliver, the strong financial flexibility generated by the company's US$5.6 billion contract backlog and the limited availability of newbuilding slots at quality yards with delivery in 2010. Seadrill is determined to continue the growth of the company and firmly believe that this newbuilding opportunity at the Jurong Shipyard is superior to U.S. corporate acquisitions from a financial as well as fleet quality point of view."

Mr. Don Lee, Senior General Manager of Offshore Division said "We are extremely pleased that SeaDrill has taken the decision to build the third semisubmersible rig of this class with Jurong Shipyard. This in itself is testimony of the confidence that SeaDrill has placed in the shipyard for its on-time, on-budget and injury-free performance."

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