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Seadrill Limited Management Reports 2017

Aug 24, 2017

9186_rns_2017-08-24_03d9ed88-a253-443f-8d6f-700400e7d3c2.pdf

Management Reports

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Rig type/Name Generation/
type 1
Built Water depth
(feet)
Drilling depth
(feet)
Location Client Current contract
Start Expire Dayrate US\$
Semi-submersibles
West Alpha 2 4th-HE 1986 2,000 23,000 Norway Norway - - -
West Venture 2 5th-HE 2000 2,600 30,000 Norway Norway - - -
West Phoenix 2 6th-HE 2008 10,000 30,000 UK Nexen May-17 Nov-17 Undisclosed
Norway Wintershall18 Nov-17 Dec-17 Undisclosed
West Hercules 6th-HE 2008 10,000 35,000 Norway Norway - - -
UK Siccar Point Energy Apr-18 May-18 Undisclosed
UK Siccar Point Energy May-18 Jun-18 Undisclosed
West Sirius 3 6th-BE 2008 10,000 35,000 GoM GoM - - -
West Taurus 6th-BE 2008 10,000 35,000 Spain Spain - - -
West Eminence 6th-HE 2009 10,000 30,000 Spain Spain - - -
West Aquarius 3 6th-HE 2009 10,000 35,000 Canada Canada - - -
Canada BP Mar-18 Jun-18 260,000
Sevan Driller 4 6th-BE 2009 10,000 40,000 Malaysia Malaysia - - -
West Orion 6th-BE 2010 10,000 35,000 Malaysia Malaysia - - -
West Pegasus 6th-HE 2011 10,000 35,000 Spain Spain - - -
West Capricorn 3 6th-BE 2011 10,000 35,000 GoM BP Jul-17 Jul-19 526,000
West Eclipse 6th-BE 2011 10,000 40,000 Angola ExxonMobil 8, 9 Jun-16 Jun-18 340,000
West Leo 3 6th-HE 2012 10,000 35,000 Spain Spain - - -
Sevan Brasil 4 6th-BE 2012 10,000 40,000 Brazil Petrobras 7 Jul-12 Jul-18 265,000
Sevan Louisiana 4 6th-BE 2013 10,000 40,000 GoM GoM - - -
West Rigel 2 6th-HE 10,000 40,000 Under construction at Jurong - - - -
Sevan Developer 4, 10 6th-BE 10,000 40,000 Under construction at COSCO - - - -
Drillships
West Navigator 2 Ultra-deepwater 2000 7,500 35,000 Norway Norway - - -
West Polaris 3 Ultra-deepwater 2008 10,000 35,000 Equatorial Guinea ExxonMobil Jul-17 Feb-18 490,000
West Capella 3 Ultra-deepwater 2008 10,000 35,000 Cyprus Total11 Jul-17 Sep-17 165,000
Gabon Petronas12 Oct-17 Jan-18 Undisclosed
Gabon Repsol12,13 Jan-18 Feb-18 Undisclosed
Options Petronas12 Mar-18 Aug-18 Undisclosed
West Gemini Ultra-deepwater 2010 10,000 35,000 Angola Total 8 Oct-13 Oct-17 656,000
West Auriga 3 Ultra-deepwater 2013 12,000 40,000 GoM BP 14 Oct-13 Oct-20 562,000
West Vela 3 Ultra-deepwater 2013 12,000 40,000 GoM BP 15 Nov-13 Nov-20 564,000
West Tellus Ultra-deepwater 2013 12,000 40,000 Brazil Petrobras 7 Apr-15 Oct-19 325,000
West Neptune Ultra-deepwater 2014 12,000 40,000 GoM LLOG 16 Dec-14 Dec-17 573,000
GoM LLOG Dec-17 Jul-18 155,000
Options LLOG Jul-18 Nov-18 155,000
West Saturn Ultra-deepwater 2014 12,000 40,000 Brazil Statoil6,7,12 Feb-18 Jun-18 206,000
Options24 Statoil6,7,12 Jun-18 Oct-19 206,000
West Jupiter Ultra-deepwater 2014 12,000 40,000 Nigeria Total Dec-14 Dec-19 Undisclosed
West Carina Ultra-deepwater 2015 12,000 40,000 Brazil Petrobras 7 Jun-15 Jun-18 481,000
West Draco Ultra-deepwater 12,000 40,000 Under construction at Samsung - - - -
West Dorado Ultra-deepwater 12,000 40,000 Under construction at Samsung - - - -
West Aquila Ultra-deepwater 12,000 40,000 Under construction at DSME - - - -
West Libra Ultra-deepwater 12,000 40,000 Under construction at DSME - - - -
Rig type/Name Generation/
type 1
Built Water depth
(feet)
Drilling depth
(feet)
Location Current contract
Client Start Expire Dayrate US\$
Jack-ups
West Epsilon 2 Heavy-duty - HE 1993 400 30,000 Norway Norway - - -
West Elara 2 Heavy-duty - HE 2011 450 40,000 Norway Statoil 18 Mar-17 Sep-17 138,000
Norway ConocoPhillips 18 Oct-17 Mar-18 95,000
Norway ConocoPhillips 18 Mar-18 Mar-20 195,000
Norway ConocoPhillips 18 Apr-20 Sep-27 Market indexed rate
West Linus 2 Heavy-duty - HE 2014 450 40,000 Norway ConocoPhillips 17,18,19 Apr-17 Mar-18 307,000
Norway ConocoPhillips 17,18,19 Apr-18 May-19 205,000
Norway ConocoPhillips 18 Jun-19 Dec-28 Market indexed rate
West Defender 5 BE 2007 350 30,000 Mexico PEMEX Aug-14 Aug-18 116,000
Mexico PEMEX Sep-18 Jan-23 155,500
West Prospero BE 2007 400 30,000 Malaysia Malaysia - - -
West Courageous 5 BE 2007 350 30,000 Mexico PEMEX Sep-14 Aug-18 116,000
Mexico PEMEX Sep-18 Nov-23 155,500
West Vigilant BE 2008 350 30,000 Malaysia Malaysia - - -
West Intrepid 5 BE 2008 350 30,000 Mexico PEMEX May-14 Aug-18 116,000
Mexico PEMEX Sep-18 May-23 155,500
West Ariel BE 2008 400 30,000 Republic of Congo ENI20 Jul-16 Feb-18 120,000
West Cressida BE 2009 375 30,000 Malaysia PCPPOC Jun-17 Sep-17 Undisclosed
West Freedom BE 2009 350 30,000 Colombia Ecopetrol Sep-17 Nov-17 109,000
West Callisto BE 2010 400 30,000 Saudi Arabia Saudi Aramco Jan-17 Nov-18 120,000
West Leda BE 2010 375 30,000 Malaysia Malaysia - - -
West Mischief BE 2010 350 30,000 Abu Dhabi NDC 21 Mar-16 Sep-17 See note 22
AOD l BE 2013 400 20,000 Saudi Arabia Saudi Aramco Jul-16 Jun-19 102,900
AOD ll BE 2013 400 20,000 Saudi Arabia Saudi Aramco Jul-16 Jun-19 102,900
AOD lll BE 2013 400 20,000 Saudi Arabia Saudi Aramco Jan-17 Dec-19 102,900
West Tucana BE 2013 400 30,000 Sharjah Sharjah - - -
West Telesto BE 2013 400 30,000 Malaysia Petronas Jul-17 Oct-17 Undisclosed
Options Petronas Oct-17 Dec-17 Undisclosed
West Castor BE 2013 400 30,000 Mexico ENI 23 Dec-16 Dec-17 110,000
Options ENI 23 Jan-18 Dec-18 115,000
Options ENI 23 Jan-19 Dec-19 121,000
West Oberon 5 BE 2013 400 30,000 Mexico PEMEX May-14 Aug-18 130,000
Mexico PEMEX Sep-18 Oct-22 171,500
West Titania 5 BE 2014 400 35,000 Mexico PEMEX Jan-15 Aug-18 130,000
Mexico PEMEX Sep-18 Oct-21 171,500
West Titan BE 400 30,000 Under construction at Dalian - - - -
West Proteus BE 400 30,000 Under construction at Dalian - - - -
West Rhea BE 400 30,000 Under construction at Dalian - - - -
West Hyperion BE 400 30,000 Under construction at Dalian - - -
West Tethys BE 400 30,000 Under construction at Dalian - - - -
West Umbriel BE 400 30,000 Under construction at Dalian - - - -
West Dione BE 400 30,000 Under construction at Dalian - - - -
West Mimas BE 400 30,000 Under construction at Dalian - - - -
Rig type/Name Generation/ Built Water depth Drilling depth Location
type 1 (feet) (feet) Current contract
Client Start Expire Dayrate US\$
Tender rigs
T15 3 Barge 2013 6,500 30,000 Thailand Chevron Jul-13 Jul-19 110,000
T16 3 Barge 2013 6,500 30,000 Thailand Chevron Aug-13 Aug-19 110,000
West Vencedor 3 Semi-tender 2010 6,500 30,000 Indonesia Medco Mar-17 Nov-17 115,000
Options Medco Nov-17 Mar-18 115,000

Footnotes: 1) HE - Harsh environment BE - Benign environment 2) Owned by North Atlantic Drilling Ltd in which Seadrill Limited owns 70.4 percent 3) Owned by Seadrill Partners in which Seadrill Limited owns 46.6 percent 4) Owned by Sevan Drilling Ltd in which Seadrill Limited owns 50.1 percent 5) Owned by SeaMex in which Seadrill Limited owns 50.0 percent 6) Includes MPD rental fee and provision of other services. 7) Daily rates partly received in Brazilian Real. Assumed US\$/BRZ foreign exchange rate 3.25 8) An element of the daily rate will be payable to our JV partner. 9) For West Eclipse a mobilization fee was received upfront. 10) On July 5, 2017, the delivery of the Sevan Developer was deferred to June 30, 2020 and the remaining installment of \$25.3 million was refunded. Cosco has the option to terminate the deferral period on July 1 2018 and again on July 1, 2019. 11) An MPD rental fee of \$15,000 per day will be payable for the duration of the contract. An additional dayrate premium is also payable for periods when the units MPD system is utilized. 12) An additional dayrate premium is payable for periods when the units MPD system is utilized. 13) For this well the rig will be assigned to work for Repsol Libreville, S.A. 14) For West Auriga a mobilization fee of US\$37.5 million will be received over the contract period. 15) For West Vela a mobilization fee of US\$37.5 million will be received over the contract period. 16) For West Neptune a mobilization fee of US\$37.5 million will be taken to income over the contract period. 17) For West Linus a mobilization fee of US\$24 million will be taken to income over the initial 5 year contract period. 18) Daily rates partly received in Norwegian kroner. Assumed NOK/US\$ foreign exchange rate 8.25 19) For West Linus we will receive an additional compensation of US\$12,430 per day over the initial 5 year contract period. 20) For West Ariel a rate of \$120,000 per day applies whilst the rig is in non-operating flotel mode. 21) The West Mischief received notice of early termination for convenience in January 2017. Under the terms of the contract the customer is required to provide 180 days notice period and a subsequent 30 days reimbursed at standby rate. 22) In May 2017 Seadrill announced that it had reached an agremment to sell the West Mischief to Shelf Drilling, the sale will be completed after the completion of current drilling contract. 23) West Castor rate includes the provision of certain onshore logistics services.

24) Option rate of \$206,000 applies for the 3 first option wells, thereafter the rate increases by \$5k/day per option for the remaining 4 option wells.

The information contained in this Fleet Update report (the "Information") is as of the date of the report only and is subject to change without notice to the recipient. Seadrill Limited assumes no duty to update any portion of the Information.

DISCLAIMER. NEITHER SEADRILL LIMITED NOR ITS AFFILIATES MAKE ANY EXPRESS OR IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE) REGARDING THE INFORMATION CONTAINED IN THIS REPORT, WHICH INFORMATION IS PROVIDED "AS IS."

No Unauthorized Publication or Use. All information provided by Seadrill Limited in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Seadrill Limited.

Client Contract Duration, Timing and Dayrates and Risks Associated with Operations. The duration and timing (including both starting and ending dates) of the client contracts are estimates only, and client contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Seadrill Limited. Also, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.) including some beyond the control of Seadrill Limited. Our client contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in previous prospectus. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, shipyards or recharges.