HAMILTON, Norway, Jan. 20, 2006 (PRIMEZONE) -- SeaDrill (Other OTC:SDRLF) (Oslo:SDRL) has today declared its option to build a second semi-submersible ultra deepwater drilling rig with Daewoo Shipbuilding in Korea. The rig is of the design GVA-7500-N and is fully capable of operating in harsh environment in water depth up to 10,000 feet.
The contract price for the unit which includes some extra upgrades versus the first unit is approximately US $495 million out of which only 30% of the contract price is payable prior to delivery of a fully operational unit. The price is based on a full turn-key delivery including an extensive testing programme, 7,500ft of riser, a 15k BOP and a full mooring system.
SeaDrill's jack-up drilling rig, SeaDrill 5, is currently under contract to major oil company operating in India. In connection with the jack up operation of this rig at its new location one of the legs suffered a puncture with the ground and some damage occurred to the leg. The jacking operation of the rig was performed based on ground information provided by the oil company.
According to the contract the rig remains in this situation on contract based on waiting rate.
Some repair will have to be made to the leg and it is expected that the offhire in connection with such repairs will negatively influence the income for the rig in the first quarter. The physical damage to the leg and the repair needed is fully insured.
SeaDrill has received a signed letter of intent from a major oil company for a 2 year contract for its new building SeaDrill No. 3 which will be delivered in May of this year. The rate for this LOI is US $160,000 a day. SeaDrill has so far not countersigned the LOI but are in the process of evaluating this contract against several other employment opportunities. A final decision is expected shortly.
Bermuda, 20 January 2006