SDRL - Seadrill Receives Notice of Contract Cancellation for the West Hercules

Hamilton, Bermuda, May 23, 2016 - Seadrill Limited ("Seadrill" or the "Company") has received a notice of termination for convenience from the current operator related to the contract for the West Hercules which was originally contracted for drilling in Norway with North Atlantic Drilling Ltd.. In accordance with the contract, the Company will receive a lump sum payment of approximately $61 million, plus dayrate and reimbursement of costs associated with demobilization of the rig. The West Hercules is currently being marketed for new work.