Sevan Drilling: Charter contract signed with LLOG

Reference is made to press release of 18 February 2013 regarding the signing of a letter of intent for a charter contract for one of the rigs currently under construction.

Sevan Drilling is pleased to confirm that a three-year charter contract for operation in the US Gulf of Mexico now has been entered into between one of its wholly owned subsidiaries and LLOG Bluewater Holdings LLC.  Sevan Drilling rig no 3 which will be named Sevan Louisiana, which is currently under construction at Cosco Quidong shipyard in China, will be used for the charter contract.  The rig will be capable of drilling in water depths up to 10,000 feet and will employ an innovative, proven cylindrical hull design that makes the rig less sensitive to weather conditions.  The Sevan Louisiana is scheduled for delivery in Q4 2013, and the start of operations under the charter contract is expected to be in January 2014. The total value of the charter contract is in excess of USD 550 million.

The CEO of Sevan Drilling, Scott Kerr comments: "The execution of this charter contract represents an important milestone for Sevan Drilling, and we are very pleased to have reached agreement with LLOG which is a well reputed operator in the US Gulf of Mexico".  

Scott Gutterman, President and CEO of LLOG, added: "Execution of this contract is another key step in accelerating the drilling and development of our extensive portfolio of exploration prospects in the Gulf of Mexico. The Sevan Louisiana will be capable of drilling each prospect in our inventory, and the rig has numerous operating, safety and environmental advantages. Sevan is an outstanding company and we are looking forward to the business relationship."

Sevan Drilling is in the process of establishing an office in the US to support the rig operation.

For further information, please contact:

Scott Kerr, CEO, Sevan Drilling ASA
+47 99283890 mobile

Jon H. Wilmann, CFO, Sevan Drilling ASA
+47 90560406 mobile

About Sevan Drilling:
Sevan Drilling ASA is an international offshore drilling contractor specializing in the ultra deepwater segment. Sevan Drilling ASA is listed on Oslo Børs.

LLOG Bluewater Holdings, LLC is a private exploration and production company in the Gulf of Mexico.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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