Seadrill Limited — Capital/Financing Update 2021

Feb 3, 2021

SDRL - Seadrill Announces Forbearance Agreements

SDRL - Seadrill Announces Forbearance Agreements

Hamilton, Bermuda, 3 February 2021 - Seadrill Limited ("Seadrill" or the

"Company") (OSE:SDRL, OTCQX:SDRLF) announces that it has entered into a

forbearance agreement with certain creditors in respect of nine out of the

group's twelve senior secured credit facility agreements.

The purpose of the forbearance agreement is to allow the Company and its

stakeholders more time to finalise negotiations 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.

Pursuant to the forbearance agreement, 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 those senior secured credit

facility agreements as a result of the group not making certain interest

payments, until and including the earlier of 15 February 2021 and any

termination of the forbearance agreement.

Forbearance has not yet been agreed with respect to certain events of default or

termination events that may arise under the three remaining senior secured

credit agreements, the Company's New Secured Notes, leasing arrangements for the

West Hercules, West Linus and West Taurus and a bilateral guarantee facility

with Danske Bank. Without a forbearance in respect of these arrangements, a non

-payment of interest or other amounts due under the senior secured credit

agreements, the Company's New Secured Notes and/or the leasing arrangements

could result in the creditors under these arrangements having the right to

accelerate or otherwise enforce their rights under them.

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.

For further information, please contact:

Media questions should be directed to:

Iain Cracknell

Director of Communications

+44 (0)7765 221 812

Analyst questions should be directed to:

Hawthorn Advisors

seadrill@hawthornadvisors.com

+44 (0)203 7454960

seadrill@hawthornadvisors.com

020 3745 4960