Seadrill Limited — Capital/Financing Update 2021

Jan 29, 2021

SDRL - Seadrill Announces Expiry of Forbearance Agreements

SDRL - Seadrill Announces Expiry of Forbearance Agreements

Hamilton, Bermuda, 29 January 2021 - Reference is made to the announcements by

Seadrill Limited ("Seadrill" or the "Company") (OSE:SDRL, OTCQX:SDRLF) on 30

December 2020 regarding forbearance agreements entered into by the Company with

certain creditors in respect of the group's senior secured credit facility

agreements.

The term of the forbearance agreements expired on 29 January 2021, and,

accordingly, the creditors with whom forbearance agreements were entered into

are no longer prevented from taking actions in respect of events of default that

may arise under the senior secured credit facility agreements as a result of the

group not making interest payments under the group's senior secured credit

agreements.

The Company continues to maintain its readiness to carry out a comprehensive

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

a court-supervised process. The Company continues to engage in constructive

discussions in relation to potential further forbearances and to finalise the

heads of terms of a comprehensive restructuring of its balance sheet; 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 to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

seadrill@hawthornadvisors.com

020 3745 4960