Seadrill Limited · NYSE:SDRL

Seadrill — Pareto Conference 2015

17 slides from Seadrill's conference presentation, 2015

1. Slide 1: Pareto Conference – Seadrill

   Pareto Conference – Seadrill Per Wullf, Seadrill Chief Executive Officer

2. Slide 2: Seadrill is ten this year

   Seadrill is ten this year 2005 / 2006 2012 • Listed in Oslo in 2005 • Seadrill Partners LLC • Acquired Smedvig in early listed on 2006 - 4 rigs in North Sea; 7 NYSE tender rigs in SE Asia • Receives US$4 bn • 2005 Seadrill Rev: $27mn commitment for 19 rig (part year) years with BP 2008 2010 Today •

3. Slide 3: We've delivered on all five focus areas

   We’ve delivered on all five focus areas 2 Shipyards 3 Funding 1 Safe operations 4 Customers 5 Cash savings 3

4. Slide 4: Continued focus on safe, efficient operations

   Continued focus on safe, efficient operations Utilization across the fleet has been high… • Technical utilization high at 95% YTD August (equal to results same period last year) • 13 class projects executed YTD all on time and budget • Four drill ships put in service since August 2014 (West Saturn,

5. Slide 5: Discussions with shipyards are progressing

   Discussions with shipyards are progressing Rig delivery timing Rigs Rig type Original schedule Revised schedule • West Draco • Drillship • Q3 2015 • Q2 2017 • West Dorado • Drillship • Q4 2015 • Q2 2017 • West Titan • Jack-up • Q2 2015 • Q1 2016 • West Proteus • Jack-up • Q3 2015 • Q1 2016 • West Rh

6. Slide 6: Continuing to deliver on funding requirements

   Continuing to deliver on funding requirements Look back since last year • Over the last year… • xx – Instalments paid on loan facilities  US$1.1bn – Secured loan facilities refinanced  US$1.8bn – New debt - newbuilds, jack-up facility, others req.  US$4.25bn – Added cash to the balance sheet  US

7. Slide 7: Commercial discussions progressing

   Commercial discussions progressing Customer Concession Benefits received Net Backlog Impact •Pemex •$60mn •2 year extension + $205mn •ENI •$32mn •18 month extension + $53mn •Total •$16mn •6 month extension + $46mn 4 Customers •Customer “A” •$23mn •3 year extension + $113mn 7

8. Slide 8: Approximately $500mn in cash savings

   Approximately $500mn in cash savings • Targets identified early • Process in place • Performance measured monthly • Tracked at multiple levels 5 Cash savings • Estimated $500mn cash savings • Savings 2x original target 8

9. Slide 9: Floater cash flow breakeven

   Floater cash flow breakeven 1 Year Ago 6 Months Ago Today  “Typical Floater”  “Typical Floater”  “Typical Floater”  2 – 3 years  1 – 2 years  6 months – 2 years  $475,000 - $525,000  $350,000 - $400,000  $250,000 - $300,000 In Thousand $ per day $120 $45 $25 -$13 $352 $232 $175 $187 OPEX G&

10. Slide 10: Jack-up cash flow breakeven

    Jack-up cash flow breakeven 1 Year Ago 6 Months Ago Today  “Typical Jack-up”  “Typical Jack-up”  “Typical Jack-up”  1 - 2 years  6 months - 2 years  1 well - 2 years  $150,000  $130,000  $90,000 - $100,000 In Thousand $ per day $27 $15 $10 -$5 $107 $80 $60 $65 OPEX G&A Cash Savings EBITDA I

11. Slide 11: Floater contract coverage

    We’re having Floater very difficult contract coverage conversations Seadrill Contract Coverage UDW Utilization – Seadrill vs. Competition Contracted 35 100% 100% Uncontracted 91% 90% 44% 90% 85% 30 65% 2015 84% 80% 25% 74% 71% 25 70% 75% 60% Number of UDW rigs 60% 20 23 50% 2016 15 22 26% 40% 74% 9

12. Slide 12: Jack-up contract coverage

    Jack-up contract coverage Seadrill Contract Coverage High Spec JU Utilization – Seadrill vs. Competition Contracted 30 100% Uncontracted 89% 44% 90% 83% 83% 65% 2015 25 84% 80% 80% 77% 80% 32% 68% 70% 20 60% 60% 68% 2016 15 50% 20 57% 17 13 40% 10 30% 43% 8 8 20% 2017 5 8 32% 5 3 6 10% 5 4 2 2 2 1 1

13. Slide 13: Adjusted long term active floater fleet

    Adjusted long term active floater fleet Projected long-term active fleet of floaters 450 400 29 350 78 78 300 26 250 200 358 150 283 283 280 100 50 0 Marketed Fleet Not Marketed Newbuild Sete Newbuilds Supply Potential Long Term Supply Scrappings How long will it take for the industry to get back in

14. Slide 14: Adjusted long term active jack-up fleet

    Adjusted long term active jack-up fleet Projected long-term active fleet of jack-ups 800 700 600 130 55‐200 500 57 400 667 300 537 480 467‐612 200 100 0 Marketed Fleet Not Marketed Newbuild Supply Potential Scrappings Long Term Supply How long will it take for the industry to get back into balance?

15. Slide 15: Floater fleet analysis

    Floater fleet analysis Average floater Fleet ageAge today: 17 years Floater Scrapping Picking up 25 23 20 30 year + 28% 16 15 15 <=10 years 11 54% 10 9 26‐30 years 6% 7 7 5 5 11‐20 years 21‐25 years 5 4 11% 1% 3 3 2 2 2 2 1 1 1 1 0 1985 1990 1995 2000 2005 2010 YTD 2015 Source: IHS Petrodata, Fearnl

16. Slide 16: Jack-Up fleet analysis

    Jack-Up fleet analysis Average floater Fleet ageAge today: 17 years Jackup Scrapping Picking up 16 15 14 12 <=10 years 10 40% 30 year + 51% 8 8 6 4 4 11‐20 years 4% 21‐25 years 2 26‐30 years 2% 3% 0 2013 2014 2015 Source: IHS Petrodata, Fearnley Securities 16

17. Slide 17: Conclusion

    Conclusion Delivered on the most important actions this year  Strengthened the balance sheet  Reset operating costs and saved cash  Negotiated effectively with customers, shipyards, and banks Consolidation will happen and we will be sitting in the driver’s seat when the industry returns to growth

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