Seadrill Restructuring Support Agreement

Hamilton, Bermuda, December 14, 2020 – Reference is reference to Seadrill Limited`s („Seadrill“ or „Enterprises“) announcements of November 20, 2020 (OSE:SDRL, OTCQX:SDRLF) regarding the company`s leniency agreements with certain creditors regarding the group`s priority secured credit and lease contracts. Seadrill Partners explained that it submitted Chapter 11 with the assistance of a group of lenders with whom it negotiated a consensual reorganization of its balance sheet. According to the company, the bankruptcy will preserve the value of Seadrill Partners` business while continuing to operate and market its assets. This press release contains forward-looking statements. These statements are generally not historical and include statements about the company`s plans, strategies, business prospects, changes and trends, the markets in which it operates and its restructuring efforts. These statements are based on management`s current plans, expectations, assumptions and beliefs regarding future events regarding the entity, and therefore involve a number of risks, uncertainties and assumptions that could lead to actual results being materially superior to the results expressed or implied in the forward-looking statements expressed only at the time of this press release. Therefore, no forward-looking statements can be guaranteed. When reviewing these forward-looking statements, you should consider the risks that are described from time to time in the company`s regulatory statements and periodic reports. The entity undertakes no commitment to update any forward-looking statements to reflect events or circumstances that occurred after the date of such a statement, nor to reflect the occurrence of unforeseen events. New factors appear from time to time and the company is not able to predict all of these factors. In addition, the Company is not in a position to assess the impact of such a factor on its business, nor the extent to which a factor or combination of factors may lead to actual results being materially different from the results contained in a forward-looking statement. Seadrill, which has yet to convince its 43 bank lenders to make a sustainable change in the terms of its loans, reiterated previous warnings that debt restructuring gives only a minimum of ownership to current shareholders, or even lack of ownership. Seadrill stated in court documents that it also secured an agreement with South Korean Daewoo Shipbuilding – Marine Engineering (SHI) 042660.KS and Samsung Heavy Industries (DSME) 010140.KS for contracts for four new drilling vessels.

The company added that it would use the bankruptcy procedure to ensure that all obligations of customers, suppliers and staff are met without interruption and that a consensual restructuring of its debt is completed. Seadrill announced that the leniency agreements gave Seadrill and its stakeholders more time to negotiate a comprehensive restructuring of their balance sheets. Such a restructuring may involve the application of a judicially controlled procedure. The company maintains its commitment to a comprehensive restructuring of its balance sheet. Such a restructuring may involve the application of a judicially controlled procedure. The company is in constructive discussions with its financial players on the possibility of continuing the leniency and management of a comprehensive restructuring of its balance sheet; Although no agreement has been reached at this stage, potential solutions are expected to lead to a significant debt repayment, which should lead to a minimal or no recovery of current shareholders.