STOCKHOLM (Bloomberg) — Bermuda-based Seadrill Ltd., the oil driller set up by billionaire John Fredriksen, advanced to an all-time high in Oslo trading after Deutsche Bank AG raised its price projection for the stock, citing improved earnings and dividend potential.

Seadrill climbed as much as six kroner, or 3.4 percent, to 182.5 kroner, and traded at 181.25 kroner as of 2.01 p.m. local time, valuing the company at 72.3 billion kroner ($14.5 billion).

A close at that price would be the highest since the shares began trading in May 2005.

Deutsche Bank increased its share-price estimate to 210 kroner from 160 kroner, and reiterated its "buy" recommendation.

"With over half of Seadrill's rigs due for renegotiation across 2009-12 and therefore able to potentially lock into current record day rates on longer terms, we believe it offers excellent earnings visibility relative to its peers," London- based analyst Christyan Malek wrote in a note to investors.

The company may return as much as half its market value to stockholders by 2012, he said.