Seadrill Limited — Capital/Financing Update 2016

Nov 16, 2016

SDRL - Extension of West Eminence Facility

SDRL - Extension of West Eminence Facility

Hamilton, Bermuda, November 16, 2016 - Seadrill Limited ("Seadrill or the

Company") announces today that it has reached an agreement with 100% of the

lenders under the West Eminence Facility and the requisite majority of lenders

under all of its other bank facilities to extend the West Eminence facility

maturity date from December 31, 2016 to April 30, 2017.

Good progress has been made on the overall terms and structure of an agreement

with our banks that will re-profile all secured credit facilities to mature in

the period from 2020 to 2023, reduce our fixed amortization obligations and

amend financial covenants.  We have initiated engagement with bondholders and

potential providers of new capital on the other key elements of our

restructuring plan.

We now expect to conclude the restructuring by the end of April 2017. Extending

the West Eminence facility will provide us with sufficient time to conclude

these negotiations.

The Company has retained Morgan Stanley and Houlihan Lokey as financial advisors

and Slaughter & May and Kirkland & Ellis as legal counsel.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are

generally not historical in nature, and specifically include statements about

the Company's plans, strategies, business prospects, changes and trends in its

business and the markets in which it operates. These statements are made based

upon management's current plans, expectations, assumptions and beliefs

concerning future events impacting the Company and therefore involve a number of

risks, uncertainties and assumptions that could cause actual results to differ

materially from those expressed or implied in the forward-looking statements,

which speak only as of the date of this news release. Consequently, no forward-

looking statement can be guaranteed. When considering these forward-looking

statements, you should keep in mind the risks described from time to time in the

Company's filings with the Securities and Exchange Commission, including its

Annual Report on Form 20-F (File No. 001-34667). The Company undertakes no

obligation to update any forward looking statements to reflect events or

circumstances after the date on which such statement is made or to reflect the

occurrence of unanticipated events. New factors emerge from time to time, and it

is not possible for the Company to predict all of these factors. Further, the

Company cannot assess the impact of each such factor on its business or the

extent to which any factor, or combination of factors, may cause actual results

to be materially different from those contained in any forward looking

statement.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.