Seadrill Limited — M&A Activity 2017

Apr 26, 2017

SDRL - Agreement with Archer

SDRL - Agreement with Archer

Hamilton, Bermuda, April 26, 2017 - Seadrill Limited ("Seadrill" or "the

Company"), as part of its restructuring plans, has signed and closed an

agreement with Archer and its lenders to extinguish approximately $253 million

in financial guarantees provided by Seadrill in exchange for a cash payment of

approximately $25 million. The Company remains in constructive discussions with

Archer and its lenders to extinguish the remaining $25 million of financial

guarantees in exchange for a cash payment representing 10% of their face value.

As part of Archer's restructuring plans the Company has also agreed to convert

$146 million in subordinated loans provided to Archer into a $45 million

subordinated convertible loan. The subordinated convertible loan will bear

interest of 5.5%, matures in December 2021 and have a conversion right into

equity of Archer Limited in 2021 based on a strike price of US$2.083 per share

(subject to appropriate adjustment mechanics), which is approximately 75% above

the subscription price in Archer's private placement on February 28, 2017.

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. 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 Securities and Exchange Commission, including its

Annual Report on Form 20-F (File No. 001-34667). 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.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act