Seadrill Secures Contracts For Two Ultra-Deepwater Newbuilds

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October 7, 2011

Seadrill announced today that it has secured contracts for two of the companies newbuild ultra-deepwater semi-submersibles currently under construction in Singapore.

The first contract is a one-year contract for the newbuild West Leo ultra-deepwater semi-submersible offshore Ghana.  The contract was awarded by Tullow Oil Ghana Ltd., a subsidiary of Tullow Oil plc, and has a total value of US$204 million which includes US$18 million in mobilization revenue.

West Leo is currently under construction at Jurong Shipyard in Singapore with delivery scheduled for the end of January 2012.  The rig is expected to commence operations in mid-April 2012.

The second contract is a firm 5-year contract for the ultra-deepwater newbuild West Capricorn for operations in North America.  Seadrill does not specify who the contract was awarded by, but simply stated that the company has entered into a Memorandum of Understanding with a major oil company for the rig.  The potential contract value for the five-year period is US$919 million, which includes a US$30 million mobilization fee.

West Capricorn is also currently under construction at the Jurong Shipyard in Singapore and is expected to be delivered in late December, 2011, with start-up operations scheduled for May 2012 at an unspecified location.  Once completed, the rig will be the first ultra-deepwater unit in the industry that is outfitted with a 7-ram blowout preventer.

Seadrill today also announced that the company has secured a US$550 million loan.

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