SOURCE: Seadrill Limited

February 05, 2010 02:55 ET

SDRL - Comments to the fourth quarter 2009 results

HAMILTON, BERMUDA--(Marketwire - February 5, 2010) -

Seadrill will announce the fourth quarter 2009 results on February 25, 2010.

In the third quarter 2009 report certain operational events impacting the fourth quarter performance were addressed. This included downtime related to the repair work on the deepwater unit West Hercules following a typhoon in the South China Sea that put the rig out of work for most of October and a three week yard- stay for the harsh environment deepwater drillship West Navigator. In the aftermath of the yard-stay, West Navigator has experienced one week of downtime in December as well as approximately 30 days downtime in January/February 2010 due to adjustment of various surveyed equipment. The semi-submersible rig West Alpha completed a mandatory survey mid October in line with original budget. The rig received compensation from the charterer for the yard-stay period. In connection with these yard-stays a US$15 million charge related to repair and maintenance work will be taken in the Income Statement. Furthermore, in December, the deepwater semi West Sirius incurred approximately 18 days of downtime related to BOP challenges. The harsh environment semi-submersible rig West Venture completed a short yard-stay for installation of third party equipment in connection with its operation on the Troll field in Norway this week. The rig has been on dayrate during the yard-stay. There has not been any other significant downtime period that has influenced the utilization of the operating fleet in the fourth quarter 2009 or so far in the first quarter 2010.

As previously mentioned, the fourth quarter results will also include a US$12 million charge related to the Singaporean yard PPL exercising its right to acquire the jack-up West Elara from Seadrill. In December, the jack-up West Atlas was declared a total loss following a fire. The insurance payment has been received resulting in a gain of US$59 million which will be booked in the Income Statement.

Seadrill Limited
Hamilton, Bermuda
February 5, 2010

Analyst contact
Jim Daatland
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19

Media contact
Trond Brandsrud
Chief Financial 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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