Seadrill Limited — Capital/Financing Update 2016

Apr 29, 2016

SDRL - Amendments to Secured Credit Facilities

SDRL - Amendments to Secured Credit Facilities

Hamilton, Bermuda, April 29, 2016 - Seadrill Limited ("Seadrill or the Company")

announces today that it has reached agreement with its banking group to extend

its three nearest maturing borrowing facilities and amend certain covenants

across its secured credit facilities, as the first phase of a broader plan to

refinance and recapitalize the business.

The facility extensions relate to:

1. The US$450 million credit facility originally maturing in June 2016 is now

extended until December 2016

2. The US$400 million credit facility originally maturing in December 2016

extended until May 2017

3. The US$2.0 billion NADL credit facility originally maturing in April 2017

extended until June 2017

The covenant amendments extend to 30 June 2017 and relate to the following:

1. A reset of the leverage covenant.

2. A revised definition of the Equity Ratio to exclude the impact of any change

to the market value of our rigs.

3. A suspension of the provision that allows lenders to receive a prepayment

under their secured credit facilities if rig values decline below a minimum

value relative to the loan balance outstanding.

The Company has agreed a set of milestones which provide a timetable for

advancing discussions around a longer term solution.  The Company has agreed not

to draw any of the US$467 million available to it under its revolving credit

facilities and to an increase in the minimum liquidity covenant contained in its

secured credit facilities from US$150 million to US$250 million during the

negotiating period.  For additional detail on the terms of the agreement, please

refer to our Annual Report on Form 20-F filed with the U.S SEC on April 28(th

)2016.

The Company aims to conclude negotiations with its stakeholders by the year end.

Mark Morris, Chief Financial Officer said: "This is an important first step in

our funding plan.  By deferring our imminent borrowing maturities, resetting a

number of covenants and removing the risk of facility prepayments related to

declining rig values we have established a more stable platform to pursue and

conclude negotiations with our stakeholders.  We are pleased with the support

shown by our banking group and continue to make good progress on negotiating a

broader package of measures intended to significantly improve liquidity and

bridge us to a recovery in the sector."

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.

[HUG#2008227]