Seadrill Limited — M&A Activity 2014

Mar 11, 2014

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

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

Hamilton, Bermuda, March 11, 2014 -.Seadrill Limited (NYSE: SDRL) (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

Auriga (the "Auriga Acquisition"). The Company owns the remaining 49% interest

in Capricorn Holdings.  The Auriga Acquisition, which is expected to close

within 30 days, will be accomplished through a series of purchases,

contributions and assumptions of debt and is subject to the satisfaction of

certain closing conditions.

The West Auriga

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

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

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

the end of its contract in October 2020 at a dayrate of $565,000 per day,

excluding approximately $37,500 per day payable by the customer over the term of

the contract relating to mobilization, variation orders and other special and

standby rates.

The implied sale price of the Auriga Acquisition is $1.24 billion, less $443.1

million outstanding under the facility related to the West Auriga.  In addition,

Capricorn Holdings intends to issue a $100 million zero coupon limited recourse

discount note to the Company that matures in September 2015.  Upon maturity of

such note, Seadrill Capricorn Holdings LLC will repay $103.7 million to the

Company.  Based on the Seadrill Partners' 51% ownership of Seadrill Capricorn

Holdings, its portion of the net purchase price after debt will be $355.4

million.

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. In particular, statements

regarding the Company's ability to complete the Auriga Acquisition, its

financing of the Auriga Acquisition and projected increases in cash

distributions are considered forward looking statements. 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, 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, 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 Annual Report on Form

20-F (File No. 001-35704). 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.

March 11, 2014

Questions should be directed to:

Rune Magnus Lundetræ: Chief Financial Officer

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1768090]