North Atlantic Drilling Limited ("North Atlantic" or the "Company") has received a notice of cancellation from Statoil Petroleum AS related to the contract for the West Epsilon. The West Epsilon was originally contracted for drilling services in Norway until the end of December 2016 and the early cancellation will be effective upon concluding its current activities in mid-October.

In accordance with the contract the Company will receive a lump sum payment of approximately $11 million.

The West Epsilon is currently being marketed for new employment.

About North Atlantic Drilling Ltd.

NADL is an offshore harsh environment drilling company with focus on the North Atlantic region. The Company has eight drilling units in the fleet, including four 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 New York Stock Exchange and on the Norwegian OTC exchange.

About Statoil

Statoil ASA (OSE: STL, NYSE: STO) is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway, with approximately 23,000 employees worldwide, and are listed on the Oslo and New York stock exchanges.