Seadrill Limited — Capital/Financing Update 2017

Aug 17, 2017

SDRL - Amendments to Certain Credit Facilities to Insulate Seadrill Partners from Seadrill Limited's Restructuring

SDRL - Amendments to Certain Credit Facilities to Insulate Seadrill Partners from Seadrill Limited's Restructuring

Hamilton, Bermuda, August 17, 2017 - Seadrill Limited ("SDRL or the Company")

announces today that it has completed amendments to three secured credit

facilities that relate to rigs purchased by Seadrill Partners from the Company

that will insulate Seadrill Partners from events of default related to the

Company's likely use of chapter 11 proceedings to implement its restructuring

plan.

The amendments to the three facilities remove Seadrill Partners and its

consolidated entities as a borrower or guarantor and separate the facilities

such that each resulting Seadrill Limited facility is secured only by Seadrill

Limited's assets without recourse to Seadrill Partners or its assets.

This transaction is part of the Company's comprehensive restructuring plan that

is intended to preserve the value of its equity stakes in Seadrill Partners and

its consolidated entities.

Discussions continue with certain third party and related party investors and

its secured lenders on the terms of a comprehensive recapitalization. As

previously disclosed, we continue to believe that implementation of a

comprehensive restructuring plan will likely involve chapter 11 proceedings, and

we are preparing accordingly. It is likely that the comprehensive restructuring

plan will require a substantial impairment or conversion of our bonds, as well

as impairment and losses for other stakeholders, including shipyards. As a

result, the Company currently expects that shareholders are likely to receive

minimal recovery for their existing shares.

The Company's business operations remain unaffected by these restructuring

efforts and the Company expects to continue to meet its ongoing customer and

business counterparty obligations.

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, the markets in which it operates and its restructuring efforts. 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.