Seadrill Limited — Capital/Financing Update 2021

Jun 11, 2021

Seadrill New Finance Limited (the "Issuer") - Update on Restructuring Discussions and SeaMex Ltd Joint Venture

Seadrill New Finance Limited (the "Issuer") - Update on Restructuring Discussions and SeaMex Ltd Joint Venture

Hamilton, Bermuda | June 11, 2021 - Seadrill Limited ("Seadrill" or the

"Company") (OSE: SDRL, OTCPK:SDRLF) and the Issuer announce that restructuring

discussions have continued with certain holders (the "Noteholders") of the

Issuer's 12.0% senior secured notes due 2025 (the "Notes") and good progress

continues to be made.

The restructuring discussions include SeaMex Ltd ("SeaMex"), a 50/50 joint

venture which Seadrill established with an investment fund controlled by Fintech

Holdings Limited ("Fintech") in 2014.

The Issuer has agreed in principle the key terms of a restructuring proposal in

relation to SeaMex with a majority of the Noteholders and which provides for a

refinancing of the secured bank debt of SeaMex. The key terms of this proposal

include:

· materially deleveraging SeaMex's balance sheet by equitizing all or a

significant proportion of the approximately $454 million of subordinated debt

controlled by the Issuer; and

· injecting short-term liquidity into SeaMex in order to bridge towards a

refinancing of SeaMex's senior bank debt as part of a comprehensive

restructuring of SeaMex's balance sheet.

Seamexholding International, Inc. (a wholly owned subsidiary of Fintech) served

a petition to place SeaMex under provisional liquidation in Bermuda. In the

absence of a consensual agreement with Fintech on restructuring terms, the

Issuer and a significant majority of the financial creditors of SeaMex are

nominating their own provisional liquidators in order to be able to implement a

creditor supported restructuring of SeaMex to maximise value for creditors and

other stakeholders.  The need for the provisional liquidation and restructuring

has arisen as a result of Petróleos Mexicanos ("Pemex") not having paid material

receivables to SeaMex over a prolonged period of time as well as an objective to

deleverage SeaMex's balance sheet.

The financial creditors of SeaMex remain fully supportive of SeaMex. Such a

restructuring is only at the SeaMex holding company level and will not impact

the operational activities of the business. There will similarly be no impact to

employees, customers or suppliers.  Any use of a court supervised process in

Bermuda will benefit from funding and result in an orderly restructuring of

SeaMex's balance sheet for the benefit of all stakeholders, including employees,

customers and suppliers.

About Seadrill

Seadrill is a leading offshore drilling contractor utilizing advanced technology

to unlock oil and gas resources for clients across harsh and benign locations

across the globe. Seadrill's high quality, technologically advanced fleet spans

all asset classes allowing its experienced crews to conduct its operations from

shallow to ultra-deep-water environments. The company operates 43 rigs, which

includes drillships, jack-ups and semi-submersibles.

Seadrill is listed on the Oslo Børs and OTC Pink markets. For more information,

visit https://www.seadrill.com/.

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