Seadrill to acquire Apexindo's shares

Bermuda-based SeaDrill Limited announced Friday it had entered into agreements with an investment company to purchase between 32% and 37% of the enlarged share capital of PT Apexindo Pratama Duta Tbk for a maximum investment amount of USD 65 million, pursuant to the latter's upcoming rights issue plan.

JSX-listed Apexindo is a subsidiary of Indonesia's top oil, gas producer PT. Medco Energi International Tbk.

SeaDrill will, as part of the agreement, take over and subscribe for a majority of the rights in the rights issue. Apexindo will issue 837,600,000 shares in the rights issue resulting in 2,582,600,000 shares outstanding post rights. In addition, SeaDrill and Apexindo have signed a Memorandum of Understanding to enter into an agreement enabling SeaDrill to use Apexindo's services to market and operate SeaDrill's offshore rigs in the Middle East and Asia, with main focus on the Indonesian market.

SeaDrill has accumulated a substantial fleet of high spec jack-up drilling rigs including a total of four jack-up rigs presently under construction in Singapore.

SeaDrill Chairman John Fredriksen says: "We are very pleased with this investment which gives us a strategic position in an well established drilling contractor in the Far East. With one new build high spec jack-up rig presently under construction in Singapore, another high spec jack-up rig presently employed with StatOil, four advanced spec swamp barges working for TotalFina Elf and 11 land rigs, we feel that the investment includes instant value as well as significant upside. The strategic partnership which gives SeaDrill access to Apexindo's strong marketing and operational management further enhances the quality of this deal. Experienced management and a high quality operation will be increasingly important as the drilling industry is running at full utilization."

SeaDrill is established in 2005 with an offshore drilling fleet consisting of three jack-ups rigs, two FPSOs, four new build jack-up rigs and one new build semi-submersibles. The Company has further options for one new build jack-up rig as well as one more new build semi-submersible. SeaDrill also holds a 25 % ownership of Ocean Rig, an offshore drilling Company listed in Oslo.

Apexindo's fleet consists of four swamp barges operating for Total Indonesie in Indonesia, one jack-up rig operating for StatOil in the Middle-East, one new build jack-up rig to be delivered in December 2006, and 11 land rigs operating in Indonesia for various oil companies including Unocal, Vico-Indonesia, Petrochina and Medco E&P.(alex)