2009-12-04 10:25:50 -

London, December , 04, 2009

The West Atlas jack-up drilling rig has been formally condemned by
its insurers following a fire on PTTEP Australasia's Montara Well
Head Platform that took place between 1 - 3 November 2009.

Seadrill is responsible for the removal of the West Atlas drilling
rig from the Montara field and has adequate insurance coverage to
fulfil this obligation.

Seadrill has started the process of assessing the damage to the West
Atlas' drilling package and superstructure resulting from the fire.

Prior to the fire, the drilling package was located above and
separate from the Montara Well Head Platform. It now appears to be
partially resting on the Montara Well Head Platform.

It is uncertain at this time how long it will take to remove the West
Atlas from the Montara field. The drilling rig will require detailed
inspection by a range of structural and equipment experts.  The
removal process will be developed and managed by specialist
contractors familiar with such operations in liaison with relevant
regulatory authorities in Australia.

Seadrill Limited
Hamilton, Bermuda
December 4, 2009


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