Seadrill Limited — Capital/Financing Update 2010

Nov 11, 2010

SDRL - Seadrill orders new ultra-deepwater drillships for delivery in 2013

Hamilton, Bermuda, November 11, 2010 - Seadrill has entered into a turnkey

contract to build up to four new ultra-deepwater drillships at the Samsung yard

in South Korea. The first two drillships are firmly ordered with delivery in the

first and second quarter 2013, respectively. Total project price per rig is

estimated to be less than US$600 million, which includes a turnkey contract with

the yard, project management, drilling and handling tools, spares, capitalized

interest and operations preparations. The contract further includes a fixed

price option for further two drillships to be declared during the first quarter

The dual derrick drillships are of an improved design compared to the three

previous drillships Seadrill has taken delivery of from Samsung, with further

enhanced capacity related to water depth, technical capabilities as well as

increased accommodation capacity. The new dynamic positioning drillships will be

capable of operations in water depths up to 12,000 feet and with a hook load

capability of 1,250 tons especially targeting operations in challenging areas

such as the Gulf of Mexico, Brazil and West Africa. The drillships will be the

first newbuilds to be outfitted with seven ram configuration of the BOP (Blow

Out Preventer) stack.

The decision to add another two ultra-deepwater newbuilds to the existing fleet

is based on the continued strength of the offshore drilling market, the return

that these investments are expected to deliver and the financial flexibility

generated by the Company's contract backlog. The order of new drillships is

considered financial superior to other alternative investments.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS, says: "Our

commitment to establish Seadrill as a leading drilling contractor through

investing in new high specification offshore drilling units built by quality

yards has been well received by our customers and investors. With the most

modern drilling fleet in the world and a total contract backlog of US$11.5

billion, we have created a solid platform for further growth and a continued

high return to our shareholders. These orders confirm our positive view on the

market outlook as well as our good experience with this design and the Samsung

yard."

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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