Seadrill Subscribes to Scorpion Private Placement

Seadrill has participated in the Scorpion Offshore Limited private placement and subscribed and been allocated 10,810,811 shares at NOK16.00 per share, representing an investment of US $24.4 million. Seadrill directly and indirectly controls 39.6 percent of the outstanding shares through forward contracts for 22,192,500 shares and direct ownership of 12,446,403 shares.

Seadrill considers its ownership interest in Scorpion as a long-term strategic investment. The participation in the private placement was based on a decision to contribute to build a financial foundation, enabling Scorpion to conclude its jack-up investment program and cover the losses related to Scorpion's deepwater project which now is terminated.