Seadrill Limited - Capital/Financing Update 2014

SDRL - Seadrill refinances three high specification ultra-deepwater units

Hamilton, Bermuda, July 10, 2014 - Seadrill Limited ("Seadrill" or the

"Company") has received commitments from 17 banks for a US$1.35 billion credit

facility with a 5 year term and 10 year amortization profile to refinance the

credit facilities secured by the West Pegasus, West Gemini, and West Orion. The

transaction was initially launched as a US$900 million facility secured by two

ultra-deepwater units. However, due to strong interest from the Company's

banking group, the facility was upsized to US$1.35 billion by including one

additional ultra-deepwater unit in the collateral package. The new loan will be

priced at a margin of Libor plus 2% and was substantially oversubscribed,

demonstrating the strength of Seadrill's credit in the banking market. This

refinancing will provide Seadrill with US$350 million in additional cash.

By concluding this transaction the Company will be left with one ultra-deepwater

and four jack-up units to be refinanced in 2015 and one ultra-deepwater and four

jack-up units in 2016, totalling US$1.2 billion to be refinanced.

The Seadrill Group has gone to great lengths to diversify its sources of funding

through opportunistic capital raises in the secured ECA, secured bank, unsecured

bond, convertible bond, term loan B, and MLP markets. Having access to numerous

markets reduces refinancing risk and leads to decreased cost of capital that

ultimately maximizes value creation for shareholders. Seadrill's diversified

funding strategy has resulted in the Company being in the best possible

financial situation in the Company's history, with significant financial

flexibility to support the dividend and prepared to act on potentially

attractive acquisition opportunities created by the temporary weakness in the

market. The Board is pleased with the significant progress made on the

financing front over the last twelve months and wants to give credit to

management for hard work and solid execution.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1820594]

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