SDRL - Announces three year contract extension for

Hamilton, Bermuda, December 29, 2016 - Seadrill Limited ("SDRL" or "the Company") has received a three year contract extension from Saudi Aramco for the jack-up AOD III expiring in December 2019. The extension is in direct continuation of the current contract and will add approximately $112.5 million in contract backlog.  This extension follows the three year extensions of the AOD I and AOD II announced on July 29, 2016. The three units have been working for Saudi Aramco since 2013 and Seadrill is pleased to continue its long term relationship with Saudi Aramco.   FORWARD LOOKING STATEMENTS This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F (File No. 001-34667). The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.