Seadrill Limited — Capital/Financing Update 2021

Feb 11, 2021

Seadrill New Finance Limited Announces Forbearance Agreement

Seadrill New Finance Limited Announces Forbearance Agreement

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

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

(the "Issuer"), a subsidiary of the Company incorporated in Bermuda in 2018 and

issuer of the 12.0% senior secured notes due 2025 (the "Notes"), has entered

into a forbearance agreement with certain holders of the Notes.

Pursuant to the forbearance agreement, the consenting creditors 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 24 February 2021 and any termination of the forbearance

agreement.

The purpose of the forbearance agreement is to allow the Company, the Issuer and

its stakeholders (including the forbearing holders) time to seek to agree the

terms of a restructuring of the Notes in parallel with the commencement by the

Company and certain of its consolidated subsidiaries of their Chapter 11 cases.

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