Seadrill US$650 million convertible bond has been fully subscribed

Hamilton, Bermuda, October 21, 2010

Reference is made to news release announced this morning concerning Seadrill Limited intention to issue up to US$650 million in principal amount of convertible bonds with a seven-year tenor.

The offering has now been fully subscribed and the orderbook is expected to be closed by 2.45 p.m CET today.

ABG Sundal Collier, Credit Suisse and Deutsche Bank are acting as joint bookrunners. DnB NOR Markets, Nordea Markets and SEB Enskilda are acting as co-managers.

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for any securities of Seadrill Limited. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

Seadrill