Seadrill Limited — Interim / Quarterly Report 2014

Nov 26, 2014

Third quarter 2014

26 November 2014

Important information

This presentation and its enclosures and appendices (hereinafter jointly referred to as the "presentation") have been prepared by SevanDrilling ASA ("Sevan Drilling" or the "Company") exclusively for information purposes. This presentation has not been reviewed orregistered with any public authority or stock exchange. Recipients of this presentation may not reproduce, redistribute or pass on, in wholeor in part, the presentation to any other person.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with itsown legal, business, investment and tax adviser as to legal, business, investment and tax advice.

There may have been changes in matters which affect the Company subsequent to the date of this presentation. Neither the issue nordelivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of anytime subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, anddoes not assume any obligation, to update or correct any information included in this presentation.

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-lookinginformation and statements are based on the current expectations, estimates and projections of Sevan Drilling or assumptions based oninformation available to the Company. Such forward-looking information and statements reflect current views with respect to future eventsand are subject to risks, uncertainties and assumptions. Sevan Drilling cannot give any assurance as to the correctness of such informationand statements.

An investment in the company involves risk, and several factors could cause the actual results, performance or achievements of theCompany to be materially different from any future results, performance or achievements that may be expressed or implied by statementsand information in this presentation, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economicand business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document. The Companydoes not intend, and does not assume any obligation, to update or correct the information included in this presentation.

This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdictionof Norwegian courts.

Third quarter highlights

Q3 Financial highlights

• Operating revenue USD 69.8 million
• EBITDA of USD 19.7 million
• Net loss USD 21.1 million
• Earnings per share loss of USD 0.04
• Other highlights
• Q3 fleet technical utilization - 64% percent
• Sevan Developer - shipyard agreement
• Sevan Louisiana downtime event and impact on the Company

Financial Update

4

Income Statement

S Un d ite d f ig in U D i l l ion au ur es m	T hr hs t ee m on / / de d 3 0 0 9 2 0 1 4 en	T hr hs t ee m on / / de d 3 0 0 9 2 0 1 3 en
ing Op t er a re ve nu e	6 9. 8	6 4. 2
Op ing t er a ex p en se	-4 7. 8	3 7. 2 -
Ge l & dm in is ive tra t ne ra a ex p en se	-4 7	7. 3 -
Re ing tru tu s c r ex p en se	0	1. 7 -
De ia t ion t isa t ion d im irm t p re c am or a n p a en ,	-2 0. 5	1 8. 8 -
( ) /g Fo ig ha los in t ion re n e xc ng e s a - o p er a s	2. 4	1. 4 -
To l o ing ta t p er a ex p en se	0. 6 -7	6 6. 4 -
Op ing f it t er a p ro	-0 8	2. 2 -
F ina ia l e nc xp en se	-1 9. 2	1 2. 5 -
f Fo ig ha los ina ing re n e xc ng e s - nc	0. 0	0. 9 -
Ne f ina ia l ite t nc m s	-1 9. 2	1 3. 4 -
Pr f it / ( los ) be fo ta o s re x	-2 0. 0	1 5. 6 -
/ ( ) Ta inc x om e ex p en se	-1 1	5 2. 9 -
Ne f it / ( los ) t p ro s	-2 1. 1	6 8. 6 -
E P S ( U S D ha ) p er s re
Ba ic d d i lu te d s an -	-0 0 4	0. 1 2 -

Income statement

• Technical utilization 64% versus 93% Q3 2013
• Increased R&M - three rigs in operations in Q3 2014
• G&A decreased USD 2.7 million
• No restructuring costs Q3 2014
• Increased depreciation
• Write off deferred tax asset in Q3 2013

Operational performance

• Fleet technical utilization 64%
• Avg. OPEX \$173,000 per day
• Sevan Driller 76.5%
• Subsea equipment repairs caused by running tools
• Sevan Brasil 83.7%
• Riser pressure drop and other riser issues
• Sevan Louisiana 30.6%
• BOP damage and tensioners

Technical utilization

Balance sheet

Balance sheet items

Assets

• Reduction in net mobilization costs
• Inventory increase ³rd rig
• Cash reduced by debt service and working capital

Equity and Liabilities

• USD 140 million debt repayments
• Drawdown on revolver

	SD Un dit ed fig s i n U illi au ure m on	As at 30 /09 /20 14	As at 30 /09 /20 13
	AS SE TS
	Dr illi rig ng s	1, 94 9.3	1, 91 6.6
	Ot he r fi d a ets xe ss	1.1	19 .2
	Ot he nt ts r n on -cu rre as se	27 .9	40 .4
	To l n ta nt ts on -cu rre as se	1, 97 8.3	1, 97 6.2
	Inv ies tor en	46 .1	26 .9
	Tra de d o the iva ble an r re ce s	19 .7	32 .4
	Ca sh d c h e iva len ts an as qu	32 .9	12 8.7
	To l c ta nt ts ur re as se	98 .7	18 8.0
	To l a ta ets ss	2, 07 7.0	2, 16 4.2
	EQ UIT Y
	Sh ita l are ca p	10 8.6	10 8.6
	Sh iui are pr em m	66 6.0	66 6.0
	Ot he ity r e qu	-11 4.2	90 .9 -
	To ta l e ity qu	66 0.4	68 3.7
	ES LIA BIL ITI
	No ion of ba nk bo wi t p ort n-c urr en rro ng s	1, 10 0.9	1, 19 6.1
	No t lo fro rel d p ate art n-c urr en an m y	75 .0	0.0
	Ot he lia bil itie nt r n on -cu rre s	0.1	0.1
	lia bil itie To ta l n nt on -cu rre s	1, 17 6.0	1, 19 6.2
	Tra de d o the ab les an r p ay	46 .9	74 .5
	Cu rtio f b k b ing nt rre po n o an orr ow s	13 1.7	17 3.1
	Ot he t li ab ilit ies r c urr en	62 .0	36 .7
	lia bil itie To ta l c nt ur re s	24 0.6	28 4.3
	To ta l lia bil itie s	1, 41 6.6	1, 48 0.5
	ity iab ilit ies To ta l e d l qu an	2, 07 7.0	2, 16 4.2

Sevan Developer

• Construction completed Q4 2014
• Agreed a deferred delivery up to three years
• Security in investment through deferral
• Rig remains at shipyard until delivery
• Continue marketing efforts
• Take delivery when contract secured
• Final instalment due at delivery

Investment - Final instalment

Sevan Louisiana Events

• Downtime from damage to BOP and tensioners
• Reached agreement with LLOG to avoid termination
• New agreement to avoid termination
• Contract rate USD 350,000 per day
• Extended backlog for 12 months into 2018
• Ability to market and contract for the next 18 months

Financing

• Sevan Drilling will raise USD 180 to 200 million secured subordinated debt
• Capital strengthens liquidity position
• Provides liquidity through 2016
• Financing expected to be closed in Q4 2014

Proposed Structure

• USD 100 million increase and extension of Seadrill revolver
• USD 100 million from a 3rd party secured by Developer security, or Seadrill will provide through revolver

Contract backlog *

Concluding remarks

12

Summary & Outlook

Uptime - Improve utilizations back to acceptable levels

2Financing - Close potential financing with support of Seadrill

Migration - Continue progress on the corporate migration plan

Marketing - Continue marketing efforts

The pure-play ultra deepwater drilling company