Seadrill to Hold 10.2% of Scorpion Offshore

On Dec. 18, 2007, Seadrill closed previous forward contracts for 5,464,300 shares in Scorpion Offshore Ltd and simultaneously entered into a new forward contract for the equivalent number of shares with due date on June 18, 2008. Following these transactions, Seadrill controls 5,464,300 shares corresponding to 10.2% of the outstanding shares.

The total ownership percentage has been calculated based on an issued share capital in Scorpion Offshore Ltd of 53,549,279 shares.