SDRL - Seadrill secures a new contract in Malaysia and orders new tender rig

Hamilton, Bermuda, April 12, 2011

Seadrill has been awarded an 18 month contract by Murphy Sabah Oil Co Ltd for the semi tender rig West Menang to operate on the Kikeh Spar deepwater field in Malaysia. Estimated contract value is approximately US$100 million (including mobilization and modification of approximately US$14 million), and the commencement is scheduled for later this quarter.

Seadrill has also exercised an option to build a new tender barge at the COSCO Nantong Shipyard in China. The new unit, T17, is scheduled for delivery in the first quarter 2013. Total project price is estimated at US$115 million, which includes project management, drilling and handling tools, spares and capitalized interest.

T17 is similar to the two tender rigs Seadrill ordered from COSCO on February 28 this year, with enhanced drilling capabilities allowing for higher drilling efficiency including the advantage of a light weight drilling equipment set.

Alf C Thorkildsen, CEO in Seadrill Management AS, says in a comment, "Based on the market outlook, also reflected in the West Menang contract, we are confident in strengthening our tender rig fleet further and that the new unit T17 will be another valuable investment going forward."

Seadrill