SDRL - Seadrill orders and secures drilling contracts for two new tender rigs

Hamilton, Bermuda, February 28, 2011

Seadrill has entered into an agreement for the construction of two tender rigs with the COSCO Nantong Shipyard in China. The two new units, T15 and T16, are scheduled for delivery in the first quarter and third quarter 2013, respectively. Total project price is estimated at US$225 million, which includes project management, drilling and handling tools, spares and capitalized interest.

The two new units will be based on similar design and specifications as recently built tender rigs, but with enhanced drilling capabilities allowing for higher drilling efficiency including the advantage of a light weight drilling equipment set.

Both of the two new tender rigs have been contracted to Chevron Thailand Exploration and Production for a five-year period offshore Thailand. Estimated contract value for the two units is approximately US$420 million. Commencement of operations is scheduled in the second quarter 2013 and fourth quarter 2013.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS says, "These newbuilds are an important addition to our present tender rig fleet. The new orders increase earnings and visibility, and enhance the attractiveness of our fleet. The US$420 million of new contracts demonstrates the competitiveness of our tender rig concept. T15 and T16 will be added to a fleet of four tender rigs already operating for Chevron, further strengthening our relationship with a leading global client."

Seadrill