SDRL - Settlement of early conversion of convertible debt

Hamilton, Bermuda, December 22, 2010

In connection with the settlement of the incentive offers for early conversion of the 2012 and 2014 convertible bonds, the number of outstanding ordinary shares in Seadrill Limited has been increased by 31,020,275 shares issued at par value of US$2.00. The new number of outstanding ordinary shares is 443,308,491 shares.

Seadrill