SDRL - Seadrill secures new contract for the jack-up rig West Callisto

Hamilton, Bermuda, March 12, 2012

Hamilton, Bermuda, March 12, 2012 - Seadrill has signed a contract with Saudi Aramco for employment of the jack-up rig West Callisto offshore Saudi Arabia. The contract duration is a minimum of three years plus an option for a one year extension. The potential revenue for the three year period is approximately US$164 million plus a US$20 million mobilization fee to cover various upgrades, dry tow vessel expenses and dayrate in the mobilization period.

The West Callisto is currently operating in Southeast Asia and is scheduled to finalize its existing work scope in August 2012. The unit will subsequently commence its transit to the Middle East and is scheduled to start operations for Saudi Aramco in September 2012.

Alf C Thorkildsen, CEO in Seadrill Management AS, says in a comment, "We are delighted to have signed our first contract with Saudi Aramco for operation in Saudi Arabia. This award complements our growing jack-up operations in the region which will increase from two to five units this year. We continue to see a strong demand for premium jack-up rigs and expect to improve our earnings visibility for this asset class going forward."

Seadrill press release