Seadrill Limited — M&A Activity 2022

Oct 18, 2022

Seadrill Limited Announces Completion of Jack-up Sale

Seadrill Limited Announces Completion of Jack-up Sale

Hamilton, Bermuda, 18 October, 2022 - As previously disclosed, on 1 September

2022, Seadrill Limited ("Seadrill" or the "Company") (NYSE & XOAS: SDRL) entered

into a Share Purchase Agreement (the "SPA") with subsidiaries of ADES Arabia

Holding Ltd. (together, "ADES") for the sale of the entities that own and

operate seven jack-ups (the "Jack-up Sale") in the Kingdom of Saudi Arabia.

Seadrill announces today that the Jack-up Sale has been completed pursuant to

the SPA.

As the Jack-up Sale has completed, the AOD I, AOD II, AOD III, West Callisto,

West Ariel, West Cressida and West Leda are now owned by ADES, and ADES employs

the crews operating the rigs and holds the drilling contracts related to the

rigs. The total consideration for the Jack-up Sale is USD 628 million in cash,

subject to adjustment for working capital and other items, and reimbursement to

Seadrill for any project costs spent in relation to the reactivation of the

three stacked jack-ups, namely the West Ariel, West Cressida and West Leda

("Reactivation Rigs"). The consideration translates into approximately USD 100

million per rig on a ready-to-drill basis. The proceeds from the Jack-up Sale

enable Seadrill to significantly de-leverage its balance sheet and to eliminate

outstanding capital expenditure for the Reactivation Rigs.

Seadrill Contact Information

David Warwick

Director of Investor Relations

David.Warwick@Seadrill.com

About Seadrill

Seadrill is a leading offshore drilling contractor utilizing advanced technology

to unlock oil and gas resources for clients across harsh and benign locations

around the globe. Seadrill's high-quality, technologically-advanced fleet spans

all asset classes allowing its experienced crews to conduct operations across

geographies, from shallow to ultra-deep-water environments.

Forward-Looking Statements

This news release includes forward-looking statements. Such statements are

generally not historical in nature, and specifically include statements about

the use of the proceeds of the Jack-Up Sale, as well as 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, including supply and demand, dayrates,

fluctuations in the price of oil, international financial market conditions,

changes in governmental regulations that affect the Company or the operations of

the Company's fleet, the review of competition authorities and other factors

listed in our public filings. 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.

Consequently, no forward-looking statement can be guaranteed. When considering

these forward-looking statements, you should also 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 for the year ended December 31, 2021, filed with the

SEC on April 29, 2022 (File No. 001-39327).

This information is subject to the disclosure requirements pursuant to article

19 of the Regulation EU 596/2014 (the EU Market Abuse Regulation) and section 5

-12 of the Norwegian Securities Trading Act.