Seadrill Limited - Capital/Financing Update 2014

SDRL - Seadrill cancels contemplated convertible bond issuance and voluntary incentive payment offer

Hamilton, Bermuda, July 8, 2014 - Seadrill Limited ("Seadrill" or the "Company")

has decided to cancel the contemplated US$1 billion 2019 maturity convertible

bond issuance due to the share price development on the day of issuance.

Although the order book was covered, the adverse price movement led to an

unattractive conversion price for the issue. Consequently, Seadrill will refuse

to accept any Acceptance Forms delivered in connection with the voluntary

incentive payment offer to convert the existing 3.375% US$650 million Seadrill

convertible bonds due in 2017.

Following numerous successful transactions the Seadrill Group will have a cash

balance of approximately US$1.5 billion by the end of July. In light of this

strong liquidity position the Company did not view this transaction as a

requirement, but rather as an opportunity.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1819014]

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