Learning From the Master

Seadrill, last week, acquired an 80.2% interest in the Petromena NOK 2,000 million bond loan. The bond loan is secured by two new deepwater rigs that have scheduled deliveries from the Jurong shipyard in April and September this year. Seadrill has invested NOK 1,100 million in the bond loan, which gives a credit exposure of substantially less than US$400 million per rig.

The Company considers the position in the bond loan as an attractive low risk investment in assets where Seadrill has strong expertise and knowledge. Seadrill has, in the last year, taken delivery and successfully commenced operations for two rigs of similar design from the same yard and have, in addition, two further units under construction at the yard for delivery in 2010 and 2011. The investment in

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