Seadrill Limited — Capital/Financing Update 2010

Sep 28, 2010

SDRL - Seadrill issues new US dollar bond

Hamilton, Bermuda, September 28, 2010 - Seadrill Limited ("Seadrill" or the

"Company") announces today that it is in the process of issuing a new 5 year US

dollar bond in the international market. The contemplated size of the bond issue

is in the range US$200-400 million, whereof US$200 million is already committed

from investors.

The books will stay open until 7PM CET Wednesday September 29th, but may close

earlier at the company's discretion.

The senior unsecured bonds will have a coupon of 6.5% payable semi-annually in

arrears and will mature in October 2015. The bonds will be issued and redeemed

at 100% of their principal amount. The bonds are expected to be settled on or

around October 5, 2010. Seadrill intends to list the bonds on the Oslo Stock

Exchange. Proceeds from the bond issue will be used for general corporate

purposes.

Carnegie ASA and Pareto Securities AS are acting as joint-lead managers and

joint book runners.

This announcement does not constitute or form part of an offer to sell or the

solicitation of an offer to subscribe for any securities of Seadrill Limited.

Contact:

Jim Dåtland

VP Investor Relations

Seadrill Management AS

+47 51309919

Important Note

This press release is not being issued in or to the United States of America,

Canada, Australia, Japan or in any other jurisdiction in which such distribution

would be prohibited by applicable law. This press release does not constitute or

form part of an offer or solicitation of an offer to purchase or subscribe for

securities in the United States. The bonds referred to herein will not be

registered under the United States Securities Act of 1933, as amended, (the

"Securities Act") or any state securities laws, and will be offered within the

United States only to qualified institutional buyers ("QIBs"), as defined in

Rule 144A under the Securities Act, through affiliates of the managers, in

reliance upon an exemption from the registration requirements in the Securities

Act, and to certain non-U.S. persons in offshore transactions in reliance on

Regulation S under the Securities Act. The bonds may not be offered or sold in

the United States except pursuant to an applicable exemption from registration.

This press release is directed only at persons who (i) are outside the United

Kingdom or (ii) have professional experience in matters relating to investments

who fall within Article 19(5) ("investment professionals") of The Financial

Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the

"Order") or (iii) are persons falling, within Article 49(2)(a) to (d) ("high net

worth companies, unincorporated associations etc") of the Order (all such

persons together being referred to as "relevant persons"). This press release is

directed only at relevant persons and must not be acted on or relied on by

persons who are not relevant persons. Any investment or investment activity to

which this press release relates is available only to relevant persons and will

be engaged in only with relevant persons. In addition, if and to the extent that

this press release is communicated in, or the offered securities to which it

relates is made in, any EEA member state that has implemented Directive

2003/71/EC (together with any applicable implementing measures in any member

state, the "Prospectus Directive"), this press release and the offering

described herein are only addressed to and directed at persons in that member

state who are "qualified investors" within the meaning of the Prospectus

Directive (or who are other persons to whom the offer may lawfully be addressed)

and must not be acted on or relied on by other persons in that member state.

Carnegie ASA and Pareto Securities AS are acting for the Company and no one else

in connection with the offer of the bonds and will not be responsible to any

other person for providing the protections afforded to their client, or for

providing advice in relation to the proposed offer of the bonds.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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