In May 2005, Seadrill Limited established an Employee Share Ownership Plan (ESOP) and authorized the Board to grant and allocate five million shares at a subscription price of USD 2.23 per share pursuant to the ESOP. The initial subscription price was set to 10 % premium to underlying stock price at the time the authorization was given. As part of this program the Board was awarded options that will expire in May next year. It has been resolved to extend the maturity of these options for relevant Board members by two years. In connection with the takeover of Smedvig and the establishment of the Seadrill Management AS organization, certain individuals were granted options with exercise price of NOK102.00 that originally were to mature at year-end 2009. It has been resolved to extend the maturity of these options by two years. The extensions are granted to align the interests of the shareholders, the Board and management. The following Primary Insiders have been granted extensions of the option exercise periods. John Fredriksen 350,000 Tor Olav Trøim 275,000 Kate Blankenship 30,000 Kjell E Jacobsen 175,000 Alf C. Thorkildsen 275,000 New total holding for Primary Insiders including controlled companies are: Shares Share options John Fredriksen * 350,000 Tor Olav Trøim** 350,000 275,000 Kate Blankenship 11,000 50,000 Kjell E. Jacobsen 0 275,000 Alf C. Thorkildsen 20,000 600,000 * Hemen Holding Ltd, or Hemen, is a Cyprus holding company, indirectly controlled by trusts established by Mr John Fredriksen for the benefit of his immediate family. Mr Fredriksen disclaims beneficial ownership of the 132,747,583 shares of our common stock held by Hemen, except to the extent of his voting and dispositive interests in such shares of common stock. Mr Fredriksen has no pecuniary interest in the shares held by Hemen. Hemen Holding and related parties are also party to TRS agreements with exposure to totally 3,500,000 shares in Seadrill Limited. ** Drew Investment Ltd, a company controlled by Tor Olav Trøim, is party to TRS agreements with exposure to 400,000 shares in Seadrill Limited. Seadrill Limited December 31, 2009 Hamilton, Bermuda [HUG#1369820]