SOURCE: Seadrill Limited

April 14, 2010 05:08 ET

SDRL - Seadrill secures a five-year contract for jack-up newbuild

HAMILTON, BERMUDA--(Marketwire - April 14, 2010) - Seadrill has received a letter of intent from Statoil for a harsh environment jack-up drilling rig for the Norwegian Continental Shelf.

The letter of intent represents a five-year contract with an estimated contract value of approximately US$650 million, (including a mobilization fee of US$24 million), and start-up is scheduled for the third quarter 2011. Statoil has the option to extend the contract with one to four years, on the same terms and conditions.

The jack-up rig of the Gusto MSC CJ70 150A design is currently under construction at the Jurong shipyard in Singapore. The rig is scheduled to be completed at the end of the first quarter 2011. Seadrill will exercise its option to purchase the drilling unit from the Jurong shipyard for approximately US$350 million, excluding owner furnished equipment, loose drilling equipment, capitalized interest and project management.

The rig is an advanced, ultra large, harsh environment, high specification drilling unit, specifically built for Norwegian requirements and matching the specification of the largest jack-up drilling units in the world. The unit provides means to operate in water depth up to 150 meters with a higher variable deck load and a higher operating efficiency compared to previous jack-up generations, while the size of the unit allows for additional opportunities within areas like logistics, well testing and early production.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS says, "This assignment strengthens the industrial cooperation between Seadrill and Statoil, benefiting the development of the Norwegian Continental Shelf, bringing a new and advanced drilling unit into the region. This is our third consecutive term contract with Statoil within the last four weeks. The three contracts have a total estimated value of approximately US$1.8 billion, making Statoil one of Seadrill's prime clients globally."

Trond Brandsrud,
Chief Financial Officer
Seadrill Management AS
+47 90 11 46 63

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


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