Seadrill and SapuraKencana announce US$2.7 billion Petrobras contract

Hamilton, Bermuda, June 28, 2013

Seadrill Limited ("Seadrill") and SapuraKencana Petroleum Berhad ("SapuraKencana") today announce that their jointly owned entity, Sapura Navegação Marítima S.A., Brazil ("SNM") has been awarded a contract from Petróleo Brasileiro S.A. ("Petrobras") to charter and operate three Pipe Laying Support Vessels ("PLSV's"). The contract is for a period of eight years with an extension option for an additional eight years and is expected to commence by the second quarter of 2016. Total revenue potential for the contract is expected to be US$2.7 billion.

The three vessels will be constructed in Holland with IHC Caland and will have the same specifications as SNM's existing orders with the yard. Total newbuild cost will be approximately US$800mm.

John Fredriksen, Chairman of Seadrill Limited says, "Seadrill, along with SapuraKencana, continues to support the strategic investment in SNM. The additional vessels bring the total PLSV fleet in the region to 6 units and builds capacity in order to insure that Petrobras has best in class support for their operations. This long term agreement demonstrates SNM's strong relationship with Petrobras and their industry leading operational performance."

Seadrill press release