Seadrill Contemplates Private Placement

Seadrill has currently three newbuild deepwater units available for assignments starting earlier than 2010. There are today several interesting prospects for these units. Based on good progress in securing contracts for its available units, the tightening yard slot situation, pressure on building prices and the strong underlying fundamentals Seadrill has, as earlier reported, entered into discussions with major yards regarding further newbuilds. The Company has negotiated a conditional contract for delivery of a drillship from a major Korean shipyard in June 2010.

In order to equity finance such growth opportunities, the Board of Seadrill has decided to raise approximately US$150 million in new equity through a private placement of seven million shares.

The offering, to be led by Carnegie ASA and Fearnley Fonds ASA, will be carried out through a book-building process and is expected to be closed before opening of the Oslo Stock Exchange on July 11, 2007. The Company's largest shareholder Hemen Holding will underwrite the issue.