SDRL - Settlement of Debt-for-Equity Exchange

Hamilton, Bermuda, May 23, 2016 - Seadrill Limited confirms that the issuance of new shares of its common stock announced on May 18, 2016, was settled on May 20, 2016. The 8,184,340 new shares have been issued and registered, and the new issued share capital of Seadrill amounts to US$1.002 billion, represented by 500,944,280 shares of its common stock issued and outstanding, each with a par value of US$2.00.

This information is subject of the disclosure requirements of section 5-12 of the Norwegian Securities Trading Act.