Seadrill Limited — Director's Dealing 2010

Jan 4, 2010

SDRL ? Amendments to option program for certain primary insiders

In May 2005, Seadrill Limited established an Employee Share Ownership Plan

(ESOP) and authorized the Board to grant and allocate five million shares at a

subscription price of USD 2.23 per share pursuant to the ESOP. The initial

subscription price was set to 10 % premium to underlying stock price at the time

the authorization was given. As part of this program the Board was awarded

options that will expire in May next year. It has been resolved to extend the

maturity of these options for relevant Board members by two years.

In connection with the takeover of Smedvig and the establishment of the Seadrill

Management AS organization, certain individuals were granted options with

exercise price of NOK102.00 that originally were to mature at year-end 2009. It

has been resolved to extend the maturity of these options by two years.

The extensions are granted to align the interests of the shareholders, the Board

and management.

The following Primary Insiders have been granted extensions of the option

exercise periods.

John Fredriksen                   350,000

Tor Olav Trøim                      275,000

Kate Blankenship                 30,000

Kjell E Jacobsen                  175,000

Alf C. Thorkildsen                 275,000

New total holding for Primary Insiders including controlled companies are:

Shares

Share options

John Fredriksen                               *

350,000

Tor Olav Trøim**

350,000                                 275,000

Kate Blankenship                             11,000

50,000

Kjell E. Jacobsen

0                                             275,000

Alf C. Thorkildsen

20,000                                   600,000

* Hemen Holding Ltd, or Hemen, is a Cyprus holding company, indirectly

controlled by trusts established by Mr John Fredriksen for the benefit of his

immediate family. Mr Fredriksen disclaims beneficial ownership of the

132,747,583 shares of our common stock held by Hemen, except to the extent of

his voting and dispositive interests in such shares of common stock.

Mr Fredriksen has no pecuniary interest in the shares held by Hemen. Hemen

Holding and related parties are also party to TRS agreements with exposure to

totally 3,500,000 shares in Seadrill Limited.

** Drew Investment Ltd, a company controlled by Tor Olav Trøim, is party to TRS

agreements with exposure to 400,000 shares in Seadrill Limited.

Seadrill Limited

December 31, 2009

Hamilton, Bermuda

[HUG#1369820]