Seadrill Limited — M&A Activity 2014

Nov 4, 2014

SDRL - Seadrill Limited agrees to sell the ultra-deepwater drillship the West Vela to Seadrill Partners

SDRL - Seadrill Limited agrees to sell the ultra-deepwater drillship the West Vela to Seadrill Partners

Hamilton, Bermuda, November 4, 2014 - Seadrill Limited (NYSE: SDRL) ("Seadrill"

or the "Company") announced today that it has entered into an agreement with

Seadrill Partners pursuant to which the Company will sell to Seadrill Capricorn

Holdings LLC, Seadrill Partners' 51% owned subsidiary ("Capricorn Holdings"),

all of the ownership interests in the entities that own and operate the

drillship, the West Vela (the "Vela Acquisition"). The Vela Acquisition, which

is expected to close within 3 days, will be accomplished through a series of

purchases, contributions and assumption of debt.

The West Vela

The West Vela is a 6th generation, dynamically positioned drillship delivered

from the Samsung shipyard to its current customer, BP, in November 2013. The

West Vela is expected to carry out operations in the U.S. Gulf of Mexico until

the end of its contract in November 2020.

The implied purchase price of the Vela Acquisition is $900 million, less $433

million of debt outstanding under the existing facility financing the West Vela.

Based on Seadrill Partners' 51% ownership of Capricorn Holdings, its portion of

the net purchase price after debt will be $238 million.

Under the terms of the West Vela contract BP is paying a daily rate of $565,000

per day plus approximately $44,000 per day as a mobilization fee paid over the

term of the contract. Under the terms of the acquisition agreement Capricorn

Holdings will pay Seadrill $40,000 per day of day rate revenue actually received

as well as the $44,000 per day mobilization fee. Both payments will cease at the

end of the current contract.

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 and the markets in which it operates. 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. Important factors that

could cause actual results to differ materially from those in the forward-

looking statements include, but are not limited to offshore drilling market

conditions, contract backlog, dry-docking and other costs of maintenance of the

drilling rigs in the Company's fleet, the cost and timing of shipyard and other

capital projects, the performance of the drilling rigs in the Company's fleet,

delay in payment or disputes with customers, fluctuations in the international

price of oil, international financial market conditions including the

international financial crisis, changes in governmental regulations that affect

the Company or the operations of the Company's fleet, increased competition in

the offshore drilling industry, and general economic, political and business

conditions globally. 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 filings with the

SEC, including its Registration Statement on Form 20-F. 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 us to predict all of these factors. Further, the Company

cannot assess the impact of each such factors 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.

November 4, 2014

Questions should be directed to:

Rune Magnus Lundetræ: Chief Financial Officer

[HUG#1868414]