Seadrill has been issued a letter of award by Hess Equatorial Guinea, Inc. to enter into an eight well drilling contract offshore Equatorial Guinea for the West Esperanza (semi-tender rig).

The anticipated contract duration is a minimum of 18 months, with corresponding potential revenues of approximately $127 million plus mobilization fee.

West Esperanza, which Seadrill ordered on speculation in June 2011, is currently under construction at Keppel FELS yard in Singapore. Construction is scheduled for completion in early second quarter of 2013. Following mobilization from Singapore to Equatorial Guinea, the rig is scheduled to commence operation at the end of the second quarter of 2013.

"We are delighted to have agreed our first operation for Hess in Africa. This award represents our first tender rig operation in Equatorial Guinea and grows the international footprint of the tender rig concept. Furthermore, the assignment confirms our strong market position within this segment and demonstrates the high demand for new premium offshore drilling equipment," said Alf C Thorkildsen, CEO in Seadrill Management AS.