Note 16 – Investment in associated companies

The Company has the following investments that are recorded using the equity method:

	December 31, 2012			December 31, 2011			December 31, 2010

SapuraCrest Bhd ("SapuraCrest")*		-	*		23.6	%		23.6	%
Varia Perdana Sdn Bhd ("Varia Perdana")		49.0	%		49.0	%		49.0	%
Tioman Drilling Company Sdn Bhd ("Tioman")		49.0	%		49.0	%		49.0	%
C6 Technologies AS ("C6")***		-			-			50.0	%
Archer ("Archer")***		39.9	%		39.9	%		-
Asia Offshore Drilling ("AOD")**		66.2	%		33.8	%		-
Sevan Drilling ("Sevan Drilling")		28.5	%		28.5	%		-
Seabras Sapura Participacoes SA ("Seabras Sapura Participacoes")		50	%		-			-
Seabras Sapura Holdco Ltd ("Seabras Sapura Holdco")		50	%		-			-
Itaunas Drilling B.V. ("Itaunas Drilling")		30	%		-			-
Camburi Drilling B.V. ("Camburi Drilling")		30	%		-			-
Sahy Drilling B.V. ("Sahy Drilling")		30	%		-			-

* In 2012, the Company's ownership share in SapuraCrest Petroleum Bhd was reduced from 23.5% to 6.3%. This is now accounted for as available-for-sale marketable securities.

**During 2012 the Company's ownership in AOD increased from 33.8% to 66.2%. Even though the Company has 66.2% ownership in AOD, the Company does not have control and therefore, we do not consolidate AOD into Seadrill's financial statements as of December 31, 2012. We continue to account for this as an equity method investment.

*** In February 2011, we deconsolidated our majority-owned subsidiary Archer (formerly Seawell Limited). Archer is now accounted for as an associated company.

Summarized balance sheet information of the Company's equity method investees is as follows:

	As of December 31, 2012
(In US$ millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities
Varia Perdana		98		154		37		-
Tioman		82		1		61		-
Archer		639		1,945		685		972
AOD		32		141		6		-
Sevan Drilling		133		1,586		266		791
Seabras Sapura Participacoes		-		42		-		-
Seabras Sapura Holdco		-		117		-		117
Itaunas Drilling		5		114		109		-
Camburi Drilling		4		121		113		-
Sahy Drilling		2		109		66		36
TOTAL		995		4,330		1,343		1,916

	As of December 31, 2011
(In US$ millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities
SapuraCrest		716		514		505		198
Varia Perdana		136		157		64		33
Tioman		80		-		70		-
Archer		638		2,176		466		1,061
AOD		49		122		3		-
Sevan Drilling		224		1,375		117		810
TOTAL		1,843		4,344		1,225		2,102

Summarized statement of operations information for the Company's equity method investees is as follows:

	Year ended December 31, 2012
(In US$ millions)	Operating revenues		Net operating income			Net income
Varia Perdana		106		85			83
Tioman		157		12			6
Archer		2,191		(322	)		(375	)
AOD		-		(2	)		(2	)
Sevan Drilling		173		11			(12	)
Seabras Sapura Participacoes		-		-			(1	)
Seabras Sapura Holdco		-		-			-
Itaunas Drilling		-		-			-
Camburi Drilling		-		-			-
Sahy Drilling		-		(1	)		(1	)
TOTAL		2,627		(217	)		(302	)

	Year ended December 31, 2011
(In US$ millions)	Operating revenues		Net operating income			Net income
SapuraCrest		866		166			147
Varia Perdana		119		96			96
Tioman		190		(2	)		(4	)
Archer		1,855		(16	)		(77	)
AOD		-		(4	)		(4	)
Sevan Drilling		116		8			(50	)
TOTAL		3,146		248			108

	Year ended December 31, 2010
(In US$ millions)	Operating revenues		Net operating income			Net income
SapuraCrest		1,043		118			122
Varia Perdana		164		99			99
Tioman		247		9			5
C6		-		(1	)		(1	)
TOTAL		1,454		225			225

SapuraCrest is a company incorporated and listed on the Malaysian stock exchange, which provides drilling and related services to offshore oil and gas industries in Malaysia and other countries.

Varia Perdana is a company incorporated in Malaysia, which operates a fleet of tender rigs. It is 51% owned by SapuraCrest Bhd and 49% owned by Seadrill.

Tioman is a company incorporated in Malaysia, which provides well services. It is 51% owned by SapuraCrest Bhd. and 49% owned by Seadrill.

Archer is a company listed in Oslo Stock Exchange and provides drilling and well services.

Asia Offshore Drilling was established by Mermaid Maritime Public Company Limited in late 2010 when two MOD-V B Class jack-up rigs were ordered at Keppel FELS in Singapore. AOD has additional option agreements for construction of two similar units and the Company is now responsible for the construction supervision, project management and commercial management of all of AODs jack-up rigs.

Sevan Drilling is a Norwegian public limited liability company (ASA), with its tax residency in Norway. The company was listed on the Oslo Axess in May 2011 and transferred to Oslo Stock Exchange in February 2012.

Seabras Sapura Participacoes SA is a company incorporated in Brazil, which currently constructs one pipelying vessel. It is 50% owned by TL Offshore Sdn. Bhd. and 50% owned by Seadrill.

Seabras Sapura Holdco Ltd is a company incorporated in Bermuda, which currently constructs two pipelying vessels. It is 50% owned by TL Offshore Sdn. Bhd. and 50% owned by Seadrill.

Itaunas Drilling BV is a company incorporated in Holland, which currently constructs a Drillship. It is 70% owned by Sete International GmbH and 30% owned by Seadrill.

Camburi Drilling BV is a company incorporated in Holland, which currently constructs a Drillship. It is 70% owned by Sete International GmbH and 30% owned by Seadrill.

Sahy Drilling BV is a company incorporated in Holland, which currently constructs a Drillship. It is 70% owned by Sete International GmbH and 30% owned by Seadrill.

At the year-end the book values of the Company's investment in associated companies are as follows:

(In US$ millions)	December 31, 2012		December 31, 2011

SapuraCrest		-		106
Tioman		7		1
Varia Perdana		108		102
Archer		121		393
AOD		117		53
Sevan Drilling		66		66
Seabras Sapura Participacoes		21		-
Seabras Sapura Holdco		59		-
Itaunas Drilling		3		-
Camburi Drilling		4		-
Sahy Drilling		3		-
Total		509		721

The quoted market prices for Archer, AOD and Sevan Drilling as at December 31, 2012, were $121 million, 137 million and 68 million, respectively. Quoted market prices for all our other equity investments are not available because these companies are not publicly traded

At year-end the share of recorded equity in the statutory accounts of the Company's associated companies are as follows:

(In US$ millions)	December 31, 2012		December 31, 2011		December 31, 2010

SapuraCrest		-		124		112
Tioman		10		5		7
Varia Perdana		105		96		100
C6		-		-		6
Archer		370		514		-
AOD		110		57		-
Sevan Drilling		189		188		-
Seabras Sapura Participacoes		22		-		-
Seabras Sapura Holdco		-		-		-
Itaunas Drilling		3		-		-
Camburi Drilling		4		-		-
Sahy Drilling		3		-		-
Total		816		984		225