Seadrill Limited — Audit Report / Information 2013

Feb 25, 2014

Fourth quarter and Preliminary 2013

25 February 2014

CEO Scott McReaken

Important information

THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE "PRESENTATION") HAVE BEENPREPARED BY SEVAN DRILLING ASA ("SEVAN DRILLING" OR THE "COMPANY") EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATIONHAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOTREPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON.

THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENTSHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT ANDTAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE.

THERE MAY HAVE BEEN CHANGES IN MATTERS WICH AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THEISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATIONCONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOTSINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANYINFORMATION INCLUDED IN THIS PRESENTATION.

THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCHFORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF SEVANDRILLING OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTSREFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. SEVANDRILLING CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS.

AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE ORACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS ORUNCERTAINTIES ASSOCIATED WITH THE COMPANY'S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKETACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES INDOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS INCURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIESMATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBEDIN THIS DOCUMENT. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATIONINCLUDED IN THIS PRESENTATION.

THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THEEXCLUSIVE JURISDICTION OF NORWEGIAN COURTS.

Highlights in fourth quarter 2013

• • Satisfactory operational uptime on Sevan Driller and Sevan Brasil for the quarter and year
• • Delivery of Louisiana 23 October and in transit towards the US Gulf
• • Drawdown of USD 1,400 million on new USD 1,750 million facility on 08 October. Refinanced previous facilities and completed Louisiana yard payment
• • Established a USD 100 million revolving credit facility with Seadrill
• •Sevan Developer delivery revised to Q3 2014
• •Integrating operations and activities with Seadrill

Financial update

Income statement

A l l f ig in U S D i l l io ur es m n	Q 4 2 0 1 3	Q 4 2 0 1 2	F Y 2 0 1 3	F Y 2 0 1 2
O i I t p e r a n g n c o m e	6 7. 7	5 7. 9	2 5 7. 7	1 7 3. 4
O i E t p e r a n g x p e n s e	-6 2. 2	-3 4. 6	-2 0 0. 2	-1 1 9. 0
E B I T D A	5. 5	2 3. 3	5 7. 5	5 4. 5
D i i t e p r e c a o n, A i i t t m o r a o n z d i i t a n m p a r m e n	-1 5. 2	-1 5. 4	-6 4. 1	-4 3. 1
O i P f i / t t p e r a n g r o ( L ) o s s	-9 7	8. 0	-6 6	1 1. 4
F i i l n a n c a I / ( ) n c o m e e x p e n s e	-1 5. 5	-1 4. 4	-8 4. 4	-4 2. 4
F i E h o r e g n x c a n g e / ( ) i l l i t t g a n o s s r e a n g o f i i n a n c n g	-1 1	-0 1	-4 6	0. 0
N F i i l I t t e n a n c a e m s	-1 6. 6	-1 4. 5	-8 9. 1	-4 2. 4
/ ( ) P f i L b f t r o o s s e o r e t a x	-2 6. 3	-6 6	-9 5. 6	-3 1. 0
T i / a x n c o m e ( ) e x p e n s e	-2 0	4. 7	-6 0. 9	1 9. 3
N P f i / ( l ) t t e r o o s s	-2 8. 3	-1 9	-1 5 6. 6	-1 1. 7

Revenues

•Operating revenues influenced by stable uptime

Operating Expenses

• • Sevan Driller operating expenses
• 2013 Q4 (Year) USD 182,000 per day (184,000)
• 2012 Q4 (Year) USD 166,000 per day (166,000)
• • Sevan Brasil operating expenses
• 2013 Q4 (Year) USD 207,000 per day (182,000)
• 2012 Q4 (Year) USD 145,000 per day (147,000)
• • USD 6.9 million in severance costs
• USD 1.7 million in Q3
• USD 5.2 million in Q4
• •USD 2.3 million Q4 write off of intangible costs

Depreciation, Amortization and Impairment

• USD 3.7 million impairment related to termination of IT Infrastructure project in Q3

Financial Items and Tax Expense

• •USD 36.7 million extinguishment unamortized finance costs Q2
• •USD 4.6 million commitment and guarantee fees
• • USD 52.9 million non-cash impairment of deferred tax assets in Q3

Balance sheet

S A l l f ig in U D i l l io ur es m n	Y E 2 0 1 3	Y E 2 0 1 2
Dr i l l ing R ig s	1, 9 1 6. 6	1, 5 0 0. 4
O he f ixe d t ts r as se	1 9. 2	1 2. 5
In i b le ta ts ng as se	0. 0	1. 6
De fe d inc ta ts rre om e x as se	0. 0	1. 5 5
O he t t ts r n on -c ur re n as se	4 0. 4	2 0. 4
To l n ta t a ts on -c ur re n ss e	1, 9 7 6. 2	1, 5 8 6. 4
Inv ies to en r	2 6. 9	2 2. 5
Tr de d he ive b les t a a n o r r ec e a	3 2. 4	3 3. 9
Ca h d h e iva len ts s an ca s q u	1 2 8. 7	7 6. 8
To l c ta t ts ur re n as se	1 8 8. 0	1 3 3. 2
S S S T O T A L A E T	2, 1 6 4. 2	1, 7 1 9. 7
S ha Ca i l ta re p	1 0 8. 6	6 1. 9
O he i t ty r e q u	5 7 5. 2	6 0 0. 5
To l e i ta ty q u	6 8 3. 8	6 6 2. 4
In be ing de b te t t re s ar	1, 1 9 6. 1	7 1 7. 9
O he t t r n on -c ur re n l ia b i l i ies /p is ion t ro v s	0. 1	7 3. 0
To l n l ia b i l i ies ta t t on -c ur re n	1, 1 9 6. 2	7 9 0. 9
In be ing de b te t t re s ar	1 7 3. 1	1 4 0. 8
Cu l ia b i l i ies t t rre n	1 1 1. 2	1 2 6 5.
To l c l ia b i l i ies ta t t ur re n	2 8 4. 2	2 6 6. 4
To l l ia b i l i ies ta t	1, 4 8 0. 5	1, 0 5 7. 3
i ia i i ies To ta l e ty d l b l t q a n u	2, 1 6 4. 2	1, 7 1 9. 7

Assets

• •Cash balance of USD 128.7 million
• • USD 3.5 million additional integration costs related to IT equipment
• • USD 25 million non-current assets due to mobilization costs for Sevan Louisiana
• • USD 52.9 million deferred income tax impaired in Q3 2013

Liabilities

• • USD 1,400 million drawn on facility, net USD 30.8 million deferred financing costs
• • Refinanced term loan facilities for Sevan Driller and Sevan Brasil
• • Other non-current liabilities had settlement of USD 27.4 million interest rate swaps, USD 26.5 million of milestone on Sevan Brasil and USD 16 million deferredriser payment
• •Equity ratio of 31.6 percent

Operations

Operations and uptime

Operations and uptime

Petrobras' "Bad Sonda" rating system: (Scale 1 to 10): 8.2 Q4 (9.1 2013)

Contracting and Client Backlog – USD 1.6bn

Sevan Louisiana – 100% completion

• •Delivered from Cosco 23 October 2013
• • The rig sailing to the US Gulf of Mexico
• Departed Walvis Bay, Namibia 15 February
• Mid March arrival in Curacao
• April arrival/commencement US Gulf of Mexico
• • Average transit speeds with tug assist range from 5 to 7 knots
• • Estimated commencement under the LLOG Bluewater contract April 2014

Overall progress

Sevan Developer – 89% completion

• •Construction progressing according to plan
• • As a result of delays in subsea vendor equipment , Cosco has indicated delivery likely in Q3 2014
• • Drillfloor and living quarter finish constructed
• •BOP installed
• • Power system commissioned, and are using the rig's own power
• •In dialog with clients for marketing of the rig

Overall progress

Integration Update

Seadrill Integration through the MSA's

Benefits

• •Financing savings and parent guarantee
• •Change in culture operations and projects
• •Expectation of efficiencies on the rig and onshore
• •Support for further growth

Risks and Mitigation

• •Reliance on one service provider
• •Monitoring performance under the management agreements
• •Unavoidable mechanical downtime

Concluding remarks

Concluding remarks

• Sevan Drilling has undergone a significant transition in the past 6 months
• Increased operating efficiency
• Improved operational safety

•

• Reduced fixed overhead costs
• • Pleased with the transit times and mobilization on the Sevan Louisiana
• • Construction progressing on Sevan Developer, monitoring the subsea equipment lead times
• Delay in delivery advantageous in a softening market
• •Financing in place for existing operations
• • Evaluating future capital requirements when decision on delivery of Sevan Developer is takenSevan Developer at Cosco