Seadrill has a letter of intent from Statoil for a new harsh environment jackup to drill on the Norwegian continental shelf. The five-year contract has an estimated value of around $650 million, including a $24-million mobilization fee, and is due to start in summer 2011. Statoil has an option to extend the contract by one to four years, on the same terms and conditions.

The Gusto MSC CJ70 150A design jackup is under construction at the Jurong shipyard in Singapore, and should be completed early next year. Seadrill will exercise its option to acquire the rig for around $350 million, excluding owner-furnished equipment, loose drilling equipment, capitalized interest, and project management.