SeaDrill Completes $30 Million Private Placement

The Board of SeaDrill Limited reports that the Company has successfully completed a private placement of 15% of the shares in the Company to the public market.

In total 15 million shares were offered at US $2.03 per share. The subscription was very well received and approximately 130 million shares were subscribed by 540 subscribers. The Company has after completion of the offering approximately 275 shareholders. Greenwich Holdings will, through their subsidiary Hemen Holdings, remain holder of 85% of the shares. No other shareholders control more than 5% of the capital. Total number of shares outstanding after the offering is 100 million. The private placement was managed by Pareto Securities ASA.

As of June 30, 2005 SeaDrill will control 7 offshore units. This includes 3 jack-up units, 2 FPSO's and 2 new build jack-up presently under construction in Singapore.

The Company's strategy is to build up a strong independent drilling contractor with major focus on modern units. The growth will come from a combination of new buildings, acquisition of units and consolidation with other companies. The Board sees a lot of opportunities within this field.

The Company will focus on bringing a good reliable service to its customers, building a strong brand and to maximize cash flow to its owners. As a function of cyclicality of the business the Company will seek to secure part of its cash flow through long term charter agreements. The shares will initially be listed on the OTC market in Oslo and it is the intention, at a later date, to seek listing at the Oslo Stock Exchange.

The Board feels confident of the development in the offshore market in general and specifically the outlook for the company. The positive response received through the public offering is encouraging in our effort to build a major new independent drilling contractor.