Seadrill Limited — M&A Activity 2014

Feb 18, 2014

SDRL - Seadrill secures contracts for multiple jack-up units in Mexico

SDRL - Seadrill secures contracts for multiple jack-up units in Mexico

Hamilton, Bermuda, February 18, 2014 - We refer to Seadrill Limited's

("Seadrill") third quarter earnings report on November 25, 2013, which announced

a Heads of Agreement between Pemex Exploracion y Produccion ("Pemex"), Mexico's

national oil company and Seadrill.  Seadrill is pleased to announce that the

final drilling contracts for the jack-up drilling units West Oberon, West

Intrepid, West Defender and West Courageous are now executed.

The fifth contract for the recently acquired jack-up drilling unit, Prospector

3, renamed West Titania, is being processed for approval by Pemex and

finalization is expected to take place second quarter 2014.

Each contract is for a firm term of approximately 6 years and total revenue

potential from the five contracts exceeds US$1.8 billion.

Additionally, Seadrill is pleased to announce the establishment of SeaMex Ltd.

(SeaMex), a 50/50 Joint Venture with an investment fund controlled by Fintech

Advisory Inc. ("Fintech").  Fintech is a private investment manager founded in

1989 that has a strong investment record and operation in Latin American

countries.   SeaMex has been formed for the purpose of owning and managing the

jack-up drilling units working for Pemex as well as to develop and pursue

further opportunities in Mexico and other Latin American countries.  The gross

proceeds for the sale of 50% of the five rigs to our partner is expected to be

around US$488 million and will result in a gain recordable in the first half of

Per Wullf, Seadrill CEO commented, "This opportunity to expand our relationship

with Pemex was partly developed on the back of Seadrill's successful operations

with our ultra-deepwater semi-submersible West Pegasus in Mexico.

The long term nature of these contracts and the establishment of SeaMex, will

create economies of scale in the region.  Seadrill sees recent developments in

Mexico such as new petroleum legislation, Pemex' expansion plans and recent

large deepwater discoveries as supportive to the great opportunity to expand

business within the country.  By using the Joint Venture to build up a strong

local independent organization with close proximity to our customer, strong

focus on education, and a high degree of local content, we expect to be able to

create an efficient, high quality, and more cost effective organization.  Over

time, this will position Seadrill better than a centrally driven organization in

what we see as a very attractive market.  At the same time, a strong focus on

localization benefits the Mexican labor market, the Mexican society, and our

clients."

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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