Seadrill Limited — Capital/Financing Update 2021

Apr 19, 2021

SDRL - Seadrill New Finance Limited Announces Replacement of Forbearance Agreement

SDRL - Seadrill New Finance Limited Announces Replacement of Forbearance Agreement

Hamilton, Bermuda, 19 April, 2021 - Seadrill Limited ("Seadrill" or the

"Company") (OSE:SDRL, OTCQX:SDRLF) announces that Seadrill New Finance Limited

(the "Issuer"), a subsidiary of the Company, has agreed to replace the existing

forbearance agreement announced on 11 February 2021, and extended on 23 February

2021, 9 March 2021 and 23 March 2021 with a new forbearance agreement, with

respect to the 12.0% senior secured notes due 2025 (the "Notes") with certain

holders of the Notes (the "Note Holders").

Pursuant to the new forbearance agreement, the consenting Note Holders have

agreed not to exercise any enforcement rights with respect to the Issuer and any

subsidiary of the Issuer which is an obligor under the Notes to, or otherwise

take actions in respect of, certain events of default that may arise under the

Notes as a result of, amongst other things, the Issuer not making the semi

-annual 4% cash interest payment due to the senior secured noteholders on 15

January 2021 in respect of their Notes and the filing of Chapter 11 cases in the

Southern District of Texas by the Company and certain of its consolidated

subsidiaries (excluding the Issuer and its consolidated subsidiaries) until and

including the earlier of 17 May 2021 and any termination of the forbearance

agreement.

The purpose of the new forbearance agreement is to allow the Issuer and its

stakeholders more time to negotiate on the heads of terms of a comprehensive

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

a court-supervised process.

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