SDRL - Seadrill orders two new jack-ups for delivery in 2012 and 2013

Hamilton, Bermuda, October 18, 2010 - Seadrill has entered into an agreement for

the construction of two jack-up drilling rigs with Jurong Shipyard (JSPL) in

Singapore. The new units are scheduled for delivery in the fourth quarter 2012

and first quarter 2013 respectively, and total project price is estimated at

US$400 million, which include project management, drilling and handling tools,

spares and capitalized interest.

In addition, Seadrill has option agreements for construction of further four (4)

jack-up newbuildings with JSPL.

The two units, to be built at Jurong, represent the latest generation, high

specification jack-up drilling rigs with greater capacities and capabilities

than current conventional units. The units are based on the Friede & Goldman

JU2000E design, and are suitable for operations world wide, including the

southern North Sea. The units have the capability to operate in water depths up

to 400 ft and drill to depths of 30,000ft and offer improved drilling

efficiencies with off-line pipe handling, simultaneous operations support and

increased accommodation capacity. These jack-up rigs will be the sixth and

seventh rig orders that Seadrill has placed with JSPL, of which two are

presently under construction.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, says,"

These newbuilds are an important supplement that complements our present jack-up

fleet. The orders position us for additional growth in an increasingly important

market segment that can provide further opportunities and earnings growth for

Seadrill. Including the recent acquisition of Scorpion, the company's fleet of

jack-ups, constitutes the world largest modern jack-up fleet with a total of 16

units built after 2006. The acquisition further strengthens our position as the

leading operator of modern, high quality drilling units."

Contact:

Jim Dåtland,

Vice President Investor Relations

Seadrill Management AS

+47 51 30 99 19

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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