Seadrill secures $4.1 billion in Brazil drilling contracts

Seadrill has secured an unconditional Letter of Award for contracts with a total revenue potential of approximately $4.1 billion over 18 rig years for three newbuild deepwater units with Petroleo Brasileiro S.A.

Offshore staff

HOUSTON -- Seadrill has secured an unconditional Letter of Award for contracts with a total revenue potential of approximately $4.1 billion over 18 rig years for three newbuild deepwater units with Petroleo Brasileiro S.A.

The three drilling rig contracts' terms and potential revenues are:

West Eminence
The sixth generation, deepwater semisubmersible drilling rig is under construction at Samsung shipyard in South Korea. The rig will be delivered during 4Q 2008 and start-up of operations offshore Brazil is scheduled for 1Q 2009. Contract duration is six years, and contractual water depth is 2,400 m (7,874 ft). Including mobilization fee and 5% performance bonus, the total revenue potential is $1.35 billion.

West Taurus
The sixth generation, deepwater semisubmersible drilling rig is under construction at the Jurong shipyard in Singapore. The rig is scheduled to be delivered during 4Q 2008, and start-up of operations offshore Brazil is scheduled for 1Q 2009. Contract duration is six years, and contractual water depth is 2,400 m (7,874 ft). Including mobilization fee and 5% performance bonus, the total revenue potential is US$1.42 billion.

West Orion
The sixth generation, deepwater semisubmersible drilling rig is under construction at the Jurong shipyard in Singapore. The rig is scheduled to be delivered during 2Q 2010, and start-up of operations offshore Brazil is scheduled for 3Q 2010. Contract duration is six years, and contractual water depth is 2,400 m (7,874 ft). Including mobilization fee and 5% performance bonus, the total revenue potential is $1.35 billion.

Including the three drilling units mentioned above, Seadrill's newbuild deepwater drillshipWest Polaris is scheduled to begin its drilling assignment offshore Brazil in 3Q 2008.

04/14/2008

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