Seadrill: West Phoenix, West Sirius Delivered From Singapore

Seadrill took delivery of the deepwater drilling rigs West Phoenix and West Sirius March 31 from the Samsung Shipyard in South Korea and Jurong Shipyard in Singapore, respectively.

West Sirius was delivered within 30 days from original delivery schedule, while West Phoenix, due to customer initiated modifications, was delivered approximately three months after original contract date. Both drilling rigs were delivered with only minor deviation to the budget which was agreed when the rigs were fixed to the charterer. The units will proceed for mobilization, and estimated time of arrival for West Phoenix in the North Sea is in the beginning of the third quarter 2008, and estimated time of arrival for West Sirius in the Gulf of Mexico at the end of the second quarter 2008.

Both drilling units have secured long-term contracts. West Phoenix has a three-year contract with Total Norge to utilize the unit in the North Atlantic region. West Sirius has a four-year assignment with Devon Energy Corporation to utilize the unit in the Gulf of Mexico.

West Phoenix and West Sirius are both sixth generation, deepwater, state of the art drilling units and some of the most advanced drilling rigs ever built, based on proven designs and performance.

The drilling units belong to a high specification, new generation drilling units, focusing on a broader spectre of capabilities, a larger operating area, a high load carrying capacity, decreased dependence on frequent supplies, efficiency and improved safety and working environment as well as a special environmental focus, minimizing the exposure to the environment. The drilling units are designed with a dynamic positioning system and a water depth capability up to 3,000 meters. In addition, West Phoenix is designed with a dual derrick and is constructed for winter operations in northern and arctic areas. Commenting on the delivery, Chief Executive Officer in Seadrill Management AS, Kjell E Jacobsen said, "Seadrill has reached a highly important milestone with the delivery of the first two newbuild deepwater drilling units out of eight units to be delivered this year."

Project costs for each of the two units are in line with what have been previously reported. Upon commencement of the contracts, Seadrill will invoice their two customers approximately US$70 million in mobilization payments.

Chairman John Fredriksen in Seadrill Limited says in a comment, "The completion of the two newbuilding projects confirms the Seadrill organization's ability to manage complex projects within time and cost and is a great achievement for our organization and the people involved. It also confirms that the Seadrill strategy to order newbuilding units with highly reputable yards like Jurong and Samsung is paying off.The combination of a favorable contracting price, good charter agreements and sound newbuilding execution with timely execution will yield significant return to our shareholders."

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