Seadrill Limited - Capital/Financing Update 2014

SDRL - Status of voluntary incentive offer in Seadrill's convertible bond due 2017

Hamilton , Bermuda, 23rd July 2014 - Seadrill Limited is pleased to announce

that holders of approximately US$547 million of Seadrill's convertible bonds due

2017 have submitted their acceptances of the voluntary conversion offer made by

Seadrill on 18th July 2014. This represents approx. 84.1% of the total

outstanding amount. Bondholders in Seadrill's convertible bonds due 2017 are

hereby reminded about the "90% clean-up call" as described in the Bond agreement

clause 10.2.2 which gives Seadrill the right to call the remaining part of the

bonds at par value plus accrued interest provided that 90% or more of the

original issued amount of US$650 million have been redeemed or converted into

shares.

The VWAP ("volume weighted average price") for the incentive offers, calculated

in accordance with the conditions stipulated in the incentive offer, is

US$37.61. As a result, the incentive payment value will be US$12,102.95 per

US$100,000 principal amount of bond.

The acceptance period for the offering will close tomorrow, 24 July at 17.00

CET. ABG Sundal Collier is engaged by Seadrill as managers for the voluntary

incentive offer.

Questions should be directed to:

Rune Magnus Lundetræ

Chief Financial Officer

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1836052]

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