Equipment Defects Halt Drilling Ops on Sevan Driller

Defects in the riser tensioning systems (DAT cylinders) in the drilling package, have caused a stop in the drilling operation on the Sevan Driller since August 25, 2010. The supplier and the manufacturer of the cylinders have taken corrective actions and are working in close cooperation with Sevan to repair the equipment. During the period of repair, the rig is on zero dayrate. Sevan expects that the rig will be back in operation by end of September.