Seadrill Limited - Capital/Financing Update 2018

SDRL - Mandatory par redemption of 12.0% Senior Secured Notes due 2025

Hamilton, Bermuda, October 2, 2018 - Seadrill Limited ("Seadrill" or the

"Company") announces a mandatory par redemption of approximately $126 million

principal amount and accrued interest of its 12.0% Senior Secured Notes due

2025 (the "Notes").

In April 2018, we entered into an agreement with Jurong shipyard determining

that our share of the West Rigel sale proceeds would be $126 million. As per the

terms of the Indenture for the Notes issued on July 2, 2018 (the "Issue Date"),

the Company will use its share of the West Rigel sale proceeds to redeem the

Notes, on a pro rata basis from holders of record on October 2, 2018 (the

"Record Date"), on November 1, 2018 (the "Redemption Date"). The redemption

price of the Notes, as set forth in the Indenture, is par plus accrued and

unpaid interest, from the Issue Date to, but not including, the Redemption Date.

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 2017 Annual Report on Form 20-F (File No.

001-34667) and its Registration Statement on Form F-1 (Registration No.

333-224459). 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.

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