Northern Drilling Ltd - Private Placement - NOK 2,027 million (USD 250 million)

The net proceeds from the Private Placement will be used to partially fund instalments on the two acquired ultra-deepwater capable drillships from Daewoo Shipbuilding & Marine Engineering Co., Ltd The two units (West Aquila and the West Libra) represent some of the world's most sophisticated high-end offshore drilling units and had an acquisition price of USD 296 million per unit, whereby USD 90 million (per unit) will be paid at contract signing and the remaining at delivery. Expected delivery is January and March 2021, with flexible delivery schedule and option to take earlier delivery. Northern Drilling Ltd. also received an option to acquire a third drillship, known as the Cobalt Explorer, from DSME at a purchase price of USD 350 million with the option period expiring in six months (right to exercise option subject to a defined, unaffiliated, third party not exercising a senior priority purchase right over the drillship at USD 405 million during the option period).