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2014-05-26

North Atlantic Drilling Ltd.: NADL - Seadrill and North Atlantic Drilling announce Investment and Co-operation Agreement with Rosneft to partner in Russian mar

Hamilton, Bermuda, May 26, 2014
- North Atlantic Drilling Ltd. ("NADL" or the "Company") and Seadrill Limited
("Seadrill") are pleased to announce that an Investment and Co-operation
Agreement ("the Agreement") has been executed with Rosneft in order to pursue
growth opportunities offshore and onshore in the Russian market through at
least 2022. As part of these proposed opportunities, NADL will enter the
onshore drilling market in Russia and enter into contracts for multiple
offshore assets. In addition Rosneft will be acquiring a significant equity
stake in NADL.

NADL has already contracted to drill the first two wells in the Kara Sea, as
part of Rosneft and Exxon's joint venture during 2014 and 2015.

As part of the Agreement, a number of long term contracts for NADL's near-term
availability are expected to be signed as well as a commitment to future
contracts and newbuild projects. The Agreement envisions initial employment
of up to 9 offshore rigs to Rosneft with a total commitment of 35 rig years.

Closing of the transaction is expected during the second half of 2014, subject
to customary due diligence, negotiation of detailed transaction terms, and
respective Board approvals.

The Company's operations in Stavanger will continue as today and will focus on
the current operations and future growth. The strategic partnership is likely
to entail opening up of other regional offices to serve local growth in
demand. Overall activity levels are expected to increase significantly and
provide employees with attractive opportunities.

Seadrill, after the initial transaction, will remain the largest shareholder
in NADL. The Board is confident that the Agreement with Rosneft will
strengthen NADL as the leading harsh environment drilling company. It will
position NADL to uniquely increase the value for all of the Company's
shareholders and make it an even more attractive workplace for the employees.
Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a comment, "We have
sought to access the growth opportunity represented by the Russian market for
several years, and we are very pleased to have reached an agreement with
Rosneft for this landmark transaction. The Russian market is one of the most
attractive opportunities in the world and offers tremendous growth potential
for North Atlantic Drilling. By partnering best in class drilling with a
supermajor who produces over 5m barrels per day, we, after closing of this
transaction, will have created a powerful force in the Russian market and for
Arctic regions on a global basis. We look forward to closing this important
transaction and working with Rosneft for many years to come"

NADL is an offshore harsh environment drilling company with focus on the North
Atlantic basin. The company has nine drilling units in the fleet, including
five semi-submersibles, a drillship, and three jack-up rigs. Seadrill Limited
currently owns 70% of the outstanding shares and the company is listed on the
NYSE and Norwegian OTC with a market capitalization of approximately US$2.1
billion.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: North Atlantic Drilling Ltd. via Globenewswire

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