Sevan Drilling ASA: Announces Sevan Developer Shipyard Agreement and Operational Update

Sevan Drilling ASA ("Sevan") announces Sevan Developer agreement with the shipyard and update on the Sevan Louisiana

Sevan Developer

Reference is made to updates dated 27 August 2014, 22 September 2014, and 06 October regarding delivery of Sevan Developer. Sevan and Cosco have agreed to amend the termination rights of the construction contract and defer the delivery date for Sevan Developer.  Delivery is deferred for 12 months with mutually agreed options, exercisable at 6 month intervals, to extend the delivery date for up to a total of 36 months from 15 October 2014. The agreement will terminate at the end of each deferral period, unless the option to extend is mutually agreed by both parties.  If termination should occur, Sevan is entitled to a refund of its instalments less any agreed costs.

Cosco will complete construction and maintain the rig at the shipyard in Qidong.

Sevan will continue to market the rig as part of its fleet and delivery will take place only after a drilling contract is in place that is sufficient for secured financing to be obtained.  Payment of the construction liability and other related costs will be deferred until delivery and the service agreement is expected be concluded within Q4 2014.

Sevan is very pleased to have reached this agreement and looks forward to a continued strong relationship with our strategic partner Cosco.

Sevan Louisiana

Reference is made to updates dated 19 August 2014, 27 August 2014, 08 September 2014, and 06 October regarding repairs to its BOP and tensioner system.  On 07 October, Sevan Louisiana began earning operational dayrate under its contract with LLOG. Sevan is currently in discussions with LLOG regarding the allocation of contractual liability and commercial consequences with respect to the downtime experienced during the third quarter.

Scott McReaken, CEO, Sevan Drilling ASA 
+47 911 94 651 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.

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

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