Seadrill Sells West Ceres Jackup to Middle East Drilling Co.

Seadrill has today exercised its right to repurchase the jackup drilling rig West Ceres from a subsidiary of Ship Finance International Ltd, for the pre-agreed price of US $135.5 million.

Furthermore, Seadrill has subsequently entered into a memorandum of agreement to sell the jackup rig to a reputable Middle East drilling company for a consideration of US $175 million plus an additional US $3 million for inventory related to West Ceres. Seadrill is expected to record a gain on sale of approximately US $20 million in the third quarter 2009. Closing of the agreement and transfer of ownership of the unit is scheduled to early July 2009.

West Ceres is presently unemployed and is located offshore Ghana in West Africa.