Seadrill Sells Shares in Scorpion Offshore, Enters into Forward Contract

On December 17, 2008, Seadrill sold 22,192,500 shares in Scorpion Offshore Ltd and simultaneously entered into a forward contract for the equivalent number of shares with due date on June 17, 2009. Following these transactions, Seadrill controls 23,828,092 shares corresponding to 39.6 percent of the outstanding shares.

The total ownership percentage has been calculated based on an issued share capital in Scorpion Offshore Ltd of 60,133,455 shares.