SDRL - Comments to the fourth quarter 2009 results

Seadrill will announce the fourth quarter 2009 results on February 25, 2010.

In the third quarter 2009 report certain operational events impacting the fourth

quarter performance were addressed. This included downtime related to the repair

work on the deepwater unit West Hercules following a typhoon in the South China

Sea that put the rig out of work for most of October and a three week yard-stay

for the harsh environment deepwater drillship West Navigator. In the aftermath

of the yard-stay, West Navigator has experienced one week of downtime in

December as well as approximately 30 days downtime in January/February 2010 due

to adjustment of various surveyed equipment. The semi-submersible rig West Alpha

completed a mandatory survey mid October in line with original budget. The rig

received compensation from the charterer for the yard-stay period. In connection

with these yard-stays a US$15 million charge related to repair and maintenance

work will be taken in the Income Statement. Furthermore, in December, the

deepwater semi West Sirius incurred approximately 18 days of downtime related to

BOP challenges. The harsh environment semi-submersible rig West Venture

completed a short yard-stay for installation of third party equipment in

connection with its operation on the Troll field in Norway this week. The rig

has been on dayrate during the yard-stay. There has not been any other

significant downtime period that has influenced the utilization of the operating

fleet in the fourth quarter 2009 or so far in the first quarter 2010.

As previously mentioned, the fourth quarter results will also include a US$12

million charge related to the Singaporean yard PPL exercising its right to

acquire the jack-up West Elara from Seadrill. In December, the jack-up West

Atlas was declared a total loss following a fire. The insurance payment has been

received resulting in a gain of US$59 million which will be booked in the Income

Statement.

Seadrill Limited

Hamilton, Bermuda

February 5, 2010

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

(Norwegian Securities Trading Act)

[HUG#1381046]

AI assistant