HAMILTON, Bermuda, Sept. 3, 2007 (PRIME NEWSWIRE) -- Reference is made to the Letter of Intent disclosed to the Oslo Stock Exchange August 2, 2007 regarding the contract awarded to the semi-submersible drilling unit West Alpha. Seadrill today confirms that a consortium of oil companies consisting of BG Norge, Nexen, Centrica Energi, Norwegian Energy Company and Petro-Canada Norge has signed the award for the long-term contract to utilize West Alpha.
The contract has a firm duration of three years with an option to extend the contract length to either four or five years. Estimated contract value is approximately US$504 million, US$642 million or US$766 million for the three, four or five-year alternatives, respectively.
West Alpha will mainly be drilling exploration wells on the Norwegian continental shelf. Commencement of operations is scheduled for February 2009, in direct continuation of the current contract.
Seadrill Limited
Hamilton, Bermuda
September 3, 2007