SDRL - Seadrill secures contract extention for ultra-deepwater rig West Hercules

Hamilton, Bermuda, July 30, 2010 - Seadrill has been awarded a six months contract extension for the ultra-deepwater semi-submersible drilling rig West Hercules by Husky Oil China Ltd. The estimated value of the contract extension is approximately US$90 million. The extension secures continued employment for the ultra-deepwater unit offshore China until May 2012. Husky Oil China Ltd. has the right to extend the assignment by another six months on the same terms and conditions.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS says, "We are pleased to add further earning visibility for our ultra-deepwater rig fleet at what we believe is competitive terms and conditions given the current market sentiment. Our strong contract backlog gives us a unique opportunity to focus our efforts on safety and operational excellence ".

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)