Norwegian company Seadrill has signed an agreement to acquire two ultra-deepwater semi-submersible drilling rigs for approximately $1.2bn from Singapore's Jurong Shipyard.

The drilling rigs, Seadragon I and Seadragon II, are currently under construction at the Jurong Shipyard in Singapore.

The two rigs are expected to be delivered in the first quarter and fourth quarter of 2011, respectively.

The deal is financed through new bank debt with a seven-year tenor and a 13-year repayment profile and the two rigs will serve as security for the new debt.

In addition, the first rig to be completed, Seadragon I, has a five year contract in place, Seadrill said.

The rigs are equipped with NOV drilling equipment and have water depth capability up to 10,000ft and total vertical drilling depth capacity up to 35,000ft.