Bermuda-based Seadrill has been awarded a letter of intent by a major oil company for international exploration activities with the deepwater semi-submersible drilling unit West Aquarius.

The contract has a firm duration of three years and estimated contract value is approximately $570 million. West Aquarius is currently under construction at the Daewoo Shipyard in South Korea and is scheduled for delivery at the end of third quarter 2008.

The letter of intent is subject to agreement of final contractual terms and conditions as well as board approvals.