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Seadrill Limited (0HYK)

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Monday 03 January, 2011

Seadrill Limited

SDRL - Seadrill acquires two semi-submersible u...

Hamilton, Bermuda, January 3, 2011 - Seadrill has entered into an agreement to
acquire the two ultra-deepwater semi-submersible drilling rigs, Seadragon I and
Seadragon II. The total project price for the two rigs, which are currently
under construction at the Jurong Shipyard in Singapore, is estimated to be
approximately US$1.2 billion (including project management for the remaining
construction period, drilling and handling tools, spares, operations
preparations and capitalized interest). Deliveries of the two rigs are expected
in the first quarter and fourth quarter 2011, respectively.

Seadrill has secured new bank debt to finance the investment. The principal
terms and conditions have been agreed and the debt will have a seven-year tenor
and a 13-year repayment profile. The two rigs will serve as security for the new

Furthermore, the first rig to be completed, Seadragon I, has a five year
contract in place. However, due to postponed delivery the contract is subject to
further discussions among the involved parties. The second unit, Seadragon II,
has currently no employment in place.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS says, "We
expect the demand for ultra-deepwater units to strengthen over the next years.
This investment increases our exposure to this growing market segment at an
acceptable price and a manageable risk. Furthermore, we are well familiar with
the design of and equipment on the rigs and are pleased to be able to continue
our long and strong relationship with the reputable Jurong Shipyard."

John Fredriksen, Chairman of Seadrill Limited says, "The cash break-even cost
per day for each rig including operating cost, tax, interest expenses and
scheduled debt installments is expected to be around US$385,000. The Board
anticipates that the purchase of the two rigs including the agreed financing
will strengthen Seadrill's dividend capacity going forward."

The rigs are based on the Moss Maritime CS50 Mk II design and belong to a high
specification, new generation drilling units, focusing on a broader specter of
operational capabilities, a larger operating area, a high load carrying
capacity, efficiency and improved safety and working environment as well as a
special environmental focus. The dynamically positioned (DP 3 class
certification) rigs are equipped with NOV drilling equipment and have water
depth capability up to 10,000 ft and total vertical drilling depth capacity up
to 35,000 feet. The rigs each have a single derrick with dual pipe handling and
offline stand building capabilities providing for increased efficiency. The
subsea well control system includes a six ram 15k psi BOP stack with two 10k psi
annulars. Each rig's variable deck-load specification is 6,200 mtons and has the
accommodation capacity for 192 people.

Analyst contact:
Jim Dåtland
Vice President Investor Relations
Seadrill Management AS
+47 51 30 99 19

Media contact:
Alf C Thorkildsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)

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     originality of the information contained therein. 
Source: Seadrill Limited via Thomson Reuters ONE