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





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