Seadrill Amends Construction Agreements with Shipyards for 4 Jackups

Seadrill has agreed with the PPL Shipyard and Keppel FELS to make certain amendments to the construction agreements for four new jackups entered into in June last year.

Seadrill initially ordered two jackups at the PPL Shipyard and two jackups at Keppel FELS for delivery scheduled in 2010. In the amendments to the existing contracts the yards have agreed to postpone all remaining milestone payments for the second units to be built at both yards until delivery and revise the milestone payment schedule for the first two units.

Seadrill has agreed to issue corporate guarantees for the remaining instalments on the first two units, however, no corporate guarantees have been provided for payments of the second units at the yards. As such, the construction of all four newbuilds will continue under the project supervision of the current project teams sponsored by Seadrill.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, says, "These amendments to the existing contracts mirror Seadrill's strong industrial relationship with the Singaporean yards. We are confident that these arrangements serve the best interests of the involved parties."