Offshore staff

HAMILTON, Bermuda -- Seadrill is in discussions with a company under formation, Sea Production Ltd., regarding the potential sale of the Crystal Ocean FPSO. Final terms and conditions regarding a sale reamin under discussion. The sale is dependent on a successful issue of new equity in Sea Production Ltd.

Final clarification about the sale is expected next week.

Crystal Ocean is operating in the Bass Strait off Australia for Anzon Australia Ltd., on a contract that extends to 2009.

2/2/2007