Seadrill Limited — Capital/Financing Update 2020

Dec 16, 2020

Seadrill Limited (SDRL): AOD Cash Utilisation

Seadrill Limited (SDRL): AOD Cash Utilisation

Hamilton, Bermuda, December 16, 2020 - The Board of Seadrill Limited ("Seadrill"

or the "Company") (OSE: SDRL, OTCQX:SDRLF) has been informed that the lenders in

the AOD facility (under which Asia Offshore Rig 1 Limited, Asia Offshore Rig 2

Limited and Asia Offshore Rig 3 Limited are borrowers) have utilised $97.2

million of AOD's cash contained in restricted accounts secured against their

facility to repay a corresponding amount of the $210 million debt outstanding as

of today. This leaves $112.8 million of such debt outstanding going forward. The

AOD facility maintains sufficient cash to support AOD's operations and this

event will have no impact to continued operations.

The face value of the net debt on the balance sheet remains unchanged as a

result of this action and Seadrill maintains its strong liquidity position as it

progresses in discussions with the broader group of lenders. The Company's cash

balance remains sufficient to manage liquidity requirements through a formal

restructuring process. At the close of third quarter 2020, Seadrill had a total

cash balance of $851m including the cash in the AOD companies.

The Company continues constructive dialogue with its lenders and maintains its

readiness to carry out a comprehensive restructuring of its balance sheet which

may involve the use of a court-supervised process. It is expected that potential

solutions will lead to significant equitization of debt which is likely to

result in minimal or no recovery for current shareholders.

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 regulatory filings and periodical

reporting. 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 to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

seadrill@hawthornadvisors.com

020 3745 4960