Seadrill Limited — Capital/Financing Update 2020

Sep 29, 2020

SDRL - Seadrill Announces Extension of Forbearance Agreements

SDRL - Seadrill Announces Extension of Forbearance Agreements

Hamilton, Bermuda, September 29, 2020 - Seadrill Limited ("Seadrill" or the

"Company") (OSE:SDRL, OTCQX:SDRLF) announces that it has agreed to extend and/or

renew the existing forbearance agreements with certain creditors, announced on

15 September 2020, in respect of the group's senior secured credit facility

agreements, senior secured notes, and guarantee facility agreement.

Pursuant to the forbearance agreements, as extended, the consenting creditors

have agreed not to exercise any voting rights to, or otherwise take actions, in

respect of certain events of default that may arise under the  senior secured

credit facility agreements, senior notes and guarantee facility agreement as a

result of the group not making certain interest and charter hire payments under

the group's senior secured credit agreements and leasing arrangements, until and

including the earlier of 31 October 2020 and any termination of the forbearance

agreements.

Forbearance has not yet been agreed with respect to certain defaults that may

arise under the Company's leasing agreements in respect of the West Hercules,

West Linus and West Taurus. Without a forbearance in respect of these leasing

agreements, non-payment of charter hire and interest could result in enforcement

of a default or cross-default under such leasing agreements.

The purpose of the forbearance agreements continues to be to allow the Company

and its stakeholders more time to negotiate on the head terms of a comprehensive

restructuring of its balance sheet. Such a restructuring may involve the use of

a court-supervised process. The Company continues to evaluate capital structure

proposals from its financial stakeholders; whilst no agreement has been reached

at this point 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 of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

seadrill@hawthornadvisors.com

020 3745 4960