West Alpha Receives LOI for North Sea Work

Seadrill has been awarded a letter of intent by a consortium of independent oil companies for the assignment of the semisubmersible, West Alpha. The contract has a firm duration of three years with an option to extend the contract length to either four or five years. Estimated contract value is approximately US$503 million, US$642 million or US$766 million for the three, four or five-year alternatives, respectively. West Alpha will mainly be drilling exploration wells on the Norwegian continental shelf. Commencement of operations is scheduled for February 2009, in direct continuation of the current contract. The letter of intent is subject to board approvals.

Kjell E. Jacobsen, Chief Executive Officer of Seadrill Management AS, said: "This contract is yet another important building block in the process of making Seadrill a great drilling contractor, and demonstrates the continued strength of the market for quality drilling units."

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