SDLP Seadrill Partners LLC

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•	offshore drilling market conditions, including supply and demand;

•	the Company's distribution policy and the Company's ability to make cash distributions on the Company's units or any increases or decreases in distributions and the amount of such increases or decreases;

•	the Company's ability to borrow under the credit facility between OPCO (as defined herein), as borrower, and Seadrill Limited (“Seadrill”), as lender;

•	the future financial condition, liquidity or results of operations of the Company or Seadrill;

•	the repayment of debt;

•	the ability of the Company, OPCO and Seadrill to comply with financing agreements and the effect of restrictive covenants in such agreements;

•	the financial condition of Seadrill;

•	the ability of the Company's drilling units to perform satisfactorily or to the Company's expectations;

•	fluctuations in the price of oil;

•	discoveries of new sources of oil that do not require deepwater drilling units;

•	the development of alternative sources of fuel and energy;

•	technological advances, including in production, refining and energy efficiency;

•	weather events and natural disasters;

•	the Company's ability to meet any future capital expenditure requirements;

•	the Company's ability to maintain operating expenses at adequate and profitable levels;

•	expected costs of maintenance or other work performed on the Company's drilling units and any estimates of downtime;

•	the Company's ability to leverage Seadrill’s relationship and reputation in the offshore drilling industry;

•	the Company's ability to purchase drilling units in the future, including from Seadrill;

•	increasing the Company's ownership interest in OPCO;

•	customer contracts, including contract backlog, contract terminations and contract revenues;

•	delay in payments by, or disputes with the Company’s customers under its drilling contracts;

•	termination of the Company's drilling contracts due to force majeure or other events;

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•	the financial condition of the Company’s customers and their ability and willingness to fund oil exploration, development and production activity;

•	the Company’s ability to comply with, maintain, renew or extend its existing drilling contracts;

•	the Company’s ability to re-deploy its drilling units upon termination of its existing drilling contracts at profitable dayrates;

•	the Company's ability to respond to new technological requirements in the areas in which the Company operates;

•	the occurrence of any accident involving the Company’s drilling units or other drilling units in the industry;

•	changes in governmental regulations that affect the Company and the interpretations of those regulations, particularly those that relate to environmental matters, export or import and economic sanctions or trade embargo matters, regulations applicable to the oil industry and tax and royalty legislation;

•	competition in the offshore drilling industry and other actions of competitors, including decisions to deploy or scrap drilling units in the areas in which the Company currently operates;

•	the availability on a timely basis of drilling units, supplies, personnel and oil field services in the areas in which the Company operates;

•	general economic, political and business conditions globally;

•	military operations, terrorist acts, wars or embargoes;

•	potential disruption of operations due to accidents, political events, piracy or acts by terrorists;

•	the Company's ability to obtain financing in sufficient amounts and on adequate terms;

•	workplace safety regulation and employee claims;

•	the cost and availability of adequate insurance coverage;

•	the Company's fees and expenses payable under the advisory, technical and administrative services agreements and the management and administrative services agreements;

•	the taxation of the Company and distributions to the Company's unitholders;

•	future sales of the Company's common units in the public market;

•	acquisitions and divestitures of assets and businesses by Seadrill; and

•	the Company's business strategy and other plans and objectives for future operations.

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•	the semi-submersible West Aquarius , which was delivered from the shipyard in 2009 and is currently operating under a drilling contract with ExxonMobil that expires in April 2017 ;

•

the semi-submersible West Capricorn , which was delivered from the shipyard at the end of 2011, and is operating under a drilling contract with BP that expires in July 2019 . In May 2016 the unit was placed on an extended standby rate for 30 days. In June 2016 an agreement was reached whereby the unit will remain on extended standby rate with expected recommencement of work in late 2017 at full rate. As part of this agreement, the operator must indicate its intention to recommence work by April 2017.

•	the semi-submersible West Leo , which was delivered from the shipyard in 2012 and is currently operating under a drilling contract with Tullow that expires in July 2018 ;

•	the semi-submersible West Sirius , which was delivered from the shipyard in 2008 and operated under a drilling contract with BP, which was terminated early in April 2015. The West Sirius is currently earning early termination fees until July 2017 ;

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•	the semi-tender rig West Vencedor , which was delivered from the shipyard in early 2010 and recently operated under a drilling contract with Petronas which concluded in August 2016 and is currently being marketed for new work. The unit has mobilized to Singapore and is expected to remain there during its idle period.

•	the tender rig T-15 , which was delivered from the shipyard in 2013 and is currently operating under a drilling contract with Chevron that expires in July 2019;

•	the tender rig T-16 , which was delivered from the shipyard in 2013 and is currently operating under a drilling contract with Chevron that expires in August 2019;

•	the drillship West Auriga , which was delivered from the shipyard in 2013 and is currently operating under a drilling contract with BP that expires in October 2020 ;

•	the drillship West Vela , which was delivered from the shipyard in 2013 and is currently operating under a drilling contract with BP that expires in November 2020 ;

•

the drillship West Capella , which was delivered from the shipyard in 2008 and operated under a drilling contract with ExxonMobil that was set to expire in April 2017 . In May 2016, a notice of early termination was received for the West Capella. Early termination fees aggregating approximately $125 million are recoverable in two equal installments. The first installment was received in the third quarter and the second is expected in the first quarter of 2017. Other direct costs incurred as a result of the early termination are also recoverable. The rig is currently warm stacked while it is being marketed for new work; and

•	the drillship West Polaris , which was delivered from the shipyard in 2008 and is currently operating under a drilling contract with ExxonMobil that expires in March 2018 .

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A.	Operating Results

Three Months Ended June 30, 2016 compared to Three Months Ended June 30, 2015

The following table summarizes our operating results for the three months ended June 30, 2016 and 2015 :

($ in millions)	Three months ended June 30,							Increase/(Decrease)
	2016			2015				$			%
Operating revenues
Contract revenues	$	361.0		$	385.6			$	(24.6	)	(6.4	)%
Reimbursable revenues	6.8			8.9				(2.1		)	(23.6	)%
Other revenues	50.7			22.7				28.0			123.3	%
Total operating revenues	418.5			417.2				1.3			0.3	%
Operating expenses
Vessel and rig operating expenses	96.5			122.0				(25.5		)	(20.9	)%
Amortization of favorable contracts	17.6			12.9				4.7			36.4	%
Reimbursable expenses	6.1			7.2				(1.1		)	(15.3	)%
Depreciation and amortization	64.8			57.7				7.1			12.3	%
General and administrative expenses	7.6			11.9				(4.3		)	(36.1	)%
Total operating expenses	192.6			211.7				(19.1		)	(9.0	)%
Operating income	225.9			205.5				20.4			9.9	%
Financial and other items
Interest income	3.2			5.2				(2.0		)	(38.5	)%
Interest expense	(44.5		)	(42.5		)		2.0			4.7	%
(Loss)/gain on derivative financial instruments	(28.3		)	18.3				(46.6		)	(254.6	)%
Foreign currency exchange loss	(0.5		)	(0.7		)		(0.2		)	(28.6	)%
Gain on bargain purchase	-			39.6				(39.6		)	100.0	%
Total financial and other items	(70.1		)	19.9				(90.0		)	(452.3	)%
Income before taxes	155.8			225.4				(69.6		)	(30.9	)%
Income taxes	(43.6		)	(32.9		)		10.7			32.5	%
Net income	$	112.2		$	192.5			$	(80.3	)	(41.7	)%
Net income attributable to Seadrill Partners LLC members	$	59.8		$	101.3			$	(41.5	)	(41.0	)%
Net income attributable to the non-controlling interest	$	52.4		$	91.2			$	(38.8	)	(42.5	)%

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	Three months ended June 30,
	2016							2015
	Number of rigs/ships	Average Daily Revenues (1) (3)			Economic Utilization (2)			Number of rigs/ships		Average Daily Revenues (1)			Economic Utilization (2)
Semi‑submersible rigs	3		$574,000		100.0	%		4			$452,000		96.0	%
Drillships	4		$498,000		100.0	%		4			$611,000		98.0	%
Tender rigs	3		$117,000		99.0	%		3			$170,000		99.0	%

(1)	Average daily revenues are the average revenues for each type of rig, based on the actual days available for each rig of that type on contract.

(2)	Economic utilization is calculated as the total revenue received, excluding bonuses, divided by the full operating dayrate multiplied by the number of days in the period for rigs that are on contract.

(3)	Average daily revenues exclude the termination payments received as part of the termination of the drilling contract by BP for the West Sirius and Exxon Mobil for the West Capella.

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Other Financial Items

Other financial items include the following items:

(US$ millions)	Three months ended June 30,
	2016			2015
Interest income	$	3.2		$	5.2
(Loss)/gain on derivative financial instruments	(28.3		)	18.3
Foreign currency exchange loss	(0.5		)	(0.7		)
Total other financial items	$	(25.6	)	$	22.8

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	Six months ended June 30,
	2016							2015
	Number of rigs/ships	Average Daily Revenues (1) (3)			Economic Utilization (2)			Number of rigs/ships	Average Daily Revenues (1)			Economic Utilization (2)
Semi‑submersible rigs	3		$590,800		99.5	%		4		$475,000		91.5	%
Drillships	4		$536,400		99.0	%		4		$603,000		99.0	%
Tender rigs	3		$116,800		99.3	%		3		$171,000		98.0	%

(1)	Average daily revenues are the average revenues for each type of rig, based on the actual days available for each rig of that type on contract.

(2)	Economic utilization is calculated as the total revenue received, excluding bonuses, divided by the full operating dayrate multiplied by the number of days in the period for rigs that are on contract.

(3)	Average daily revenues exclude the termination payments received as part of the termination of the drilling contract by BP for the West Sirius and Exxon Mobil for West Capella.

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Other Financial Items

Other financial items reported in the income statement include the following items:

(US$ millions)	Six months ended June 30,
	2016			2015
Interest income	$	5.5		$	6.2
Loss on derivative financial instruments	(98.0		)	(33.6		)
Foreign currency exchange loss	0.1			(3.3		)
Total other financial items	$	(92.4	)	$	(30.7	)

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B.	Liquidity and Capital Resources

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Borrowing Activities

As of June 30, 2016 and December 31, 2015 , the Company had the following principal amounts of debt outstanding:

(In $ millions)	June 30, 2016			December 31, 2015
External debt agreements
Amended Senior Secured Credit Facilities	$	2,880.9		$	2,894.7
$1,450 Senior Secured Credit Facility	362.3			382.6
$420 West Polaris  Facility	297.0			315.0
Sub-total external debt	$	3,540.2		$	3,592.3
Less current portion of long-term external debt	(105.1		)	(105.3		)
Long-term external debt	$	3,435.1		$	3,487.0
Related party debt agreements
Rig Financing and Loan Agreements
West Vencedor  Loan Agreement	$	49.4		$	57.5
$440 Rig Financing Agreement	129.0			139.0
Sub-total Rig Financing and Loan Agreements	$	178.4		$	196.5
Other related party debt
$109.5 T-15  vendor financing facility	$	—		$	109.5
Total related party debt	$	178.4		$	306.0
Less current portion of related party debt	(36.3		)	(145.8		)
Long-term related party debt	$	142.1		$	160.2
Total external and related party debt	$	3,718.6		$	3,898.3

Outstanding external debt as of June 30, 2016
(In $ millions)		Principal outstanding			Debt Issuance Costs			Total External Debt
Current portion of long-term external debt		$	105.1		$	(11.3	)	$	93.8
Long-term external debt		3,435.1			(42.2		)	3,392.9
Total		$	3,540.2		$	(53.5	)	$	3,486.7

Outstanding external debt as of December 31, 2015
(In $ millions)		Principal outstanding			Debt Issuance Costs			Total External Debt
Current portion of long-term external debt		$	105.3		$	(11.5	)	$	93.8
Long-term external debt		3,487.0			(46.6		)	3,440.4
Total		$	3,592.3		$	(58.1	)	$	3,534.2

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(In US$ millions)	As of June 30
2017	$	141.4
2018	754.3
2019	29.0
2020	29.0
2021	2,764.9
2022 and thereafter	0.0
Total outstanding debt	$	3,718.6

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Equity ratio: Seadrill is required to maintain a total equity to total assets ratio of at least 30.0% . Prior to the amendment, both total equity and total assets were adjusted for the difference between book and market values of drilling units, as determined by independent broker valuations. The amendment removes the need for the market value adjustment from the calculation of the equity ratio until June 30, 2017.

•	Leverage ratio: Seadrill is required to maintain a ratio of net debt to EBITDA. Prior to the amendment the leverage ratio had to be no greater than 6.0 :1, falling to 5.5 :1 from October 1, 2016, and falling again to 4.5 :1 from January 1, 2017. The amendment retains the ratio at 6.0 :1 until December 31, 2016, and then increases to 6.5 :1 between January 1, 2017 and June 30, 2017.

•

Minimum-value-clauses: Seadrill’s secured bank credit facilities contain loan-to-value clauses, or minimum-value-clauses (“MVC”), which could require Seadrill to post additional collateral or prepay a portion of the outstanding borrowings should the value of the drilling units securing borrowings under each of such agreements decrease below required levels. Subject to compliance with the terms of the amendment, this covenant has been suspended until June 30, 2017.

•	Minimum Liquidity: Seadrill has previously been required to maintain a minimum of $ 150 million of liquidity. This has been reset to $ 250 million until June 30, 2017 in consideration for the above amendments.

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•	Further process:

•	Seadrill has agreed to consultation, information provision and certain processes in respect of further discussions with its lenders under its senior secured credit facilities, including agreements in respect of progress milestones towards the agreement of, and implementation plan in respect of, a comprehensive financing package.

•	In addition Seadrill has agreed to certain additional restrictions which will apply during this process. Such restrictions shall apply to Seadrill and its consolidated subsidiaries only and therefore are not binding on the Company and its subsidiaries.

Contractual Obligations

The following table sets forth our contractual obligations for the periods indicated as of June 30, 2016 :

($ in millions)	Payments due by Period
	Total			Less than 1 year			1-3 years			4-5 years			More than 5 years
Long-term debt obligations	$	3,718.6		$	141.4		$	783.3		$	2,793.9		$	—
Interest expense commitments on long-term debt obligations (1)	555.2			118.4			214.6			200.1			22.1
Commitment fee on undrawn facilities (2)	16.1			2.3			4.6			4.6			4.6
Deferred consideration payable (3)	271.3			38.6			75.0			56.1			101.6
Total	$	4,561.2		$	300.7		$	1,077.5		$	3,054.7		$	128.3

(1)	The Company's interest commitment on long-term debt is calculated based on the applicable interest rate of the loan agreements and the associated interest rate swap rates.

(2)

The $100 million revolving credit facility with Seadrill and the $100 million revolving credit facility under the Amended Senior Secured Credit Facilities incur commitment fees on the undrawn balances of 2.0% per annum and 0.5% per annum respectively. As of June 30, 2016 , the outstanding balance on the Amended Senior Secured Credit Facilities revolver was $50 million , and the sponsor credit facility was undrawn.

(3)

The Company recognized deferred consideration payable as a result of the purchase of the entities that own and operate the West Vela on November 4, 2014 and the West Polaris on June 19, 2015 from Seadrill. The payment of these amounts is contingent on the amount of contract revenues and mobilization revenues received from the customer. For further information on the nature of these payments please see Note 3 - Business Acquisitions in the notes to the Company's audited financial statements included in the Form 20-F.

	June 30, 2016						December 31, 2015
(In millions of US dollars)	Outstanding Principal			Fair Value			Outstanding Principal			Fair Value
Related party assets/(liabilities) - interest rate swap agreements	$	637.8		$	(6.5	)	$	655.3		$	2.2
Other current assets/(liabilities) - interest rate swap agreements	2,837.2			(149.6		)	2,851.9			(84.2		)

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•	the measurement of monetary assets and liabilities denominated in foreign currencies converted to US Dollars, with the resulting gain or loss recorded as “Foreign exchange gain/(loss)”; and

•	the impact of fluctuations in exchange rates on the reported amounts of the Company's revenues and expenses which are denominated in foreign currencies.

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SEADRILL PARTNERS LLC

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

for the six months ended June 30, 2016 and 2015

(In $ millions, except per unit amounts)

		Three months ended June 30,							Six months ended June 30,
		2016			2015				2016			2015
Operating revenues
Contract revenues		$	361.0		$	385.6			$	762.9		$	771.5
Reimbursable revenues		6.8			8.9				19.3			19.0
Other revenues	*	50.7			22.7				80.3			27.4
Total operating revenues		418.5			417.2				862.5			817.9
Operating expenses
Vessel and rig operating expenses	*	96.5			122.0				206.2			240.5
Amortization of favorable contracts		17.6			12.9				35.3			24.1
Reimbursable expenses		6.1			7.2				17.6			16.4
Depreciation and amortization		64.8			57.7				132.5			115.2
General and administrative expenses	*	7.6			11.9				21.5			25.5
Total operating expenses		192.6			211.7				413.1			421.7
Operating income		225.9			205.5				449.4			396.2
Financial and other items
Interest income		3.2			5.2				5.5			6.2
Interest expense	*	(44.5		)	(42.5		)		(90.4		)	(94.5		)
(Loss)/gain on derivative financial instruments	*	(28.3		)	18.3				(98.0		)	(33.6		)
Foreign currency exchange (loss)/gain		(0.5		)	(0.7		)		0.1			(3.3		)
Gain on bargain purchase		—			39.6				—			39.6
Total financial and other items		(70.1		)	19.9				(182.8		)	(85.6		)
Income before income taxes		155.8			225.4				266.6			310.6
Income taxes		(43.6		)	(32.9		)		(81.2		)	(47.2		)
Net income		$	112.2		$	192.5			$	185.4		$	263.4
Net income attributable to Seadrill Partners LLC members		$	59.8		$	101.3			$	95.9		$	139.5
Net income attributable to the non-controlling interest		$	52.4		$	91.2			$	89.5		$	123.9
Earnings per unit (basic and diluted)
Common unitholders		$	0.79		$	0.82			$	1.27		$	1.30
Subordinated unitholders		$	—		$	0.82			$	—		$	1.30
Cash distributions declared and paid in the period per unit (1)		$	0.2500		$	0.5675			$	0.5000		$	1.1350

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SEADRILL PARTNERS LLC

UNAUDITED CONSOLIDATED BALANCE SHEETS

as of June 30, 2016 and December 31, 2015

(In $ millions, except unit amounts)	June 30, 2016			December 31, 2015
ASSETS
Current assets
Cash and cash equivalents	$	450.1		$	319.0
Accounts receivables, net	346.4			278.3
Amount due from related party	141.1			128.1
Other current assets	137.2			166.6
Total current assets	1,074.8			892.0
Non-current assets
Drilling units	5,443.8			5,547.3
Goodwill	3.2			3.2
Deferred tax assets	23.4			34.2
Amount due from related party	—			50.0
Other non-current assets	258.1			314.4
Total non-current assets	5,728.5			5,949.1
Total assets	$	6,803.3		$	6,841.1
LIABILITIES AND EQUITY
Current liabilities
Current portion of long-term debt	$	93.8		$	93.8
Current portion of long-term related party debt	36.3			145.8
Trade accounts payable	35.9			24.1
Current portion of deferred and contingent consideration to related party	37.8			60.4
Related party payables	302.2			304.7
Other current liabilities	322.8			217.9
Total current liabilities	828.8			846.7
Non-current liabilities
Long-term debt	3,392.9			3,440.4
Long-term related party debt	142.1			160.2
Deferred and contingent consideration to related party	172.3			185.4
Deferred tax liability	53.0			43.7
Long-term related party payable	—			50.0
Other non-current liabilities	9.8			17.3
Total non-current liabilities	3,770.1			3,897.0
Equity
Members’ capital:
Common unitholders (issued 75,278,250 units as at June 30, 2016 and as at December 31, 2015)	986.5			945.5
Subordinated unitholders (issued 16,543,350 units as at June 30, 2016 and as at December 31, 2015)	36.1			18.8
Seadrill member interest	—			—
Total members’ capital	1,022.6			964.3
Non-controlling interest	1,181.8			1,133.1
Total equity	2,204.4			2,097.4
Total liabilities and equity	$	6,803.3		$	6,841.1

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SEADRILL PARTNERS LLC

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

for the six months ended June 30, 2016 and 2015

(In $ millions)

	Six months ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	185.4		$	263.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	132.5			115.2
Amortization of deferred loan charges	5.5			14.4
Amortization of favorable contracts	35.3			24.1
Gain on bargain purchase	—			(39.6		)
Unrealized loss on derivative financial instruments	74.1			8.0
Payment for long term maintenance	(28.3		)	(19.5		)
Net movement in deferred taxes	20.1			(3.5		)
Accretion of discount on deferred consideration	8.8			7.7
Changes in operating assets and liabilities, net of effect of acquisitions:
Trade accounts receivable	(68.1		)	54.0
Prepaid expenses and accrued income	8.8			0.8
Trade accounts payable	11.8			4.1
Related party balances	(27.8		)	(29.1		)
Other assets	35.4			26.2
Other liabilities	40.5			(39.4		)
Changes in deferred revenue	(8.0		)	(2.0		)
Other, net	0.7			—
Net cash provided by operating activities	$	426.7		$	384.8
Cash Flows from Investing Activities
Additions to newbuildings and drilling units	$	(1.9	)	$	(8.5	)
Insurance refund	6.4			—
Acquisition of subsidiaries, net of cash acquired	—			(184.0		)
Payment received from loans granted to related parties	49.3			—
Net cash provided by / (used) in investing activities	$	53.8		$	(192.5	)
Cash Flows from Financing Activities
Proceeds from long term debt	$	—		$	50.0
Repayments of long term debt	(52.5		)	(44.9		)
Repayments of related party debt	(177.0		)	(22.3		)
Debt fees paid	(0.3		)	(0.3		)
Contingent consideration paid	(40.7		)	(3.6		)
Cash distributions	(78.4		)	(217.0		)
Net cash used in financing activities	$	(348.9	)	$	(238.1	)
Effect of exchange rate changes on cash	(0.5		)	0.8
Net increase / (decrease) in cash and cash equivalents	$	131.1		$	(45.0	)
Cash and cash equivalents at beginning of the period	319.0			242.7
Cash and cash equivalents at the end of period	$	450.1		$	197.7

See accompanying notes that are an integral part of these unaudited Consolidated Financial Statements.

F-3

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SEADRILL PARTNERS LLC

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' CAPITAL

for the six months ended June 30, 2016 and 2015

(In $ millions)

		Members’ Capital
		Common Units				Subordinated Units				Seadrill Member Interest				Total  Members' Capital				Non- Controlling Interest				Total Equity
Balance at December 31, 2014		$	913.3			$	11.7			$	3.2			$	928.2			$	1,116.1			$	2,044.3
Net income		109.1				24.0				6.4				139.5				123.9				263.4
Cash distribution		(85.4		)		(18.8		)		(6.4		)		(110.6		)		(106.4		)		(217.0		)
Balance at June 30, 2015		$	937.0			$	16.9			$	3.2			$	957.1			$	1,133.6			$	2,090.7
Balance at December 31, 2015		$	945.5			$	18.8			$	—			$	964.3			$	1,133.1			$	2,097.4
Net income		78.6				17.3				—				95.9				89.5				185.4
Cash distribution		(37.6		)		—				—				(37.6		)		(40.8		)		(78.4		)
Balance at June 30, 2016		$	986.5			$	36.1			$	—			$	1,022.6			$	1,181.8			$	2,204.4

See accompanying notes that are an integral part of these unaudited Consolidated Financial Statements.

F-4

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 - General information

Basis of presentation

The unaudited interim consolidated financial statements of Seadrill Partners LLC (the "Company" or "Seadrill Partners") are presented in accordance with accounting principles generally accepted in the United States of America (US GAAP). The amounts are presented in United States dollars (US dollar) rounded to the nearest hundred thousand, unless stated otherwise.

The unaudited interim consolidated financial statements do not include all of the disclosures required in complete annual financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the Company's annual consolidated and combined carve-out financial statements as of December 31, 2015 filed on Form 20-F (the “audited 2015 financial statements”). The year-end balance sheet data was derived from the audited 2015 financial statements, but does not include all disclosures required by US GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement have been included. Preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant accounting policies

The accounting policies adopted in the preparation of the unaudited interim consolidated financial statements are consistent with those followed in the preparation of the annual audited 2015 financial statements for the year ended December 31, 2015 , unless otherwise included in these unaudited interim consolidated financial statements as separate disclosures.

Note 2 - Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In February 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , which changes guidance related to both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. With respect to the VIE model, the standard changes, among other things, the identification of variable interests associated with fees paid to a decision maker or service provider, the VIE characteristics for a limited partner or similar entity, and the primary beneficiary determination. With respect to the VOE model, the ASU eliminates the presumption that a general partner controls a limited partnership or similar entity unless the presumption can otherwise be overcome. Under the new guidance, a general partner would largely not consolidate a partnership or similar entity under the VOE model. The Company adopted this ASU effective January 1, 2016. The adoption of this ASU did not impact the Company’s consolidated financial statements and related disclosures.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides new authoritative guidance on the methods of revenue recognition and related disclosure requirements. This new standard supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard also requires additional qualitative and quantitative disclosures. In April 2015 the FASB proposed to defer the effective date of the guidance by one year. Based on this proposal, public entities would need to apply the new guidance for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

F-5

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which provides new authoritative guidance with regards to management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The ASU will be effective for all entities in the first annual period ending after December 15, 2016 (December 31, 2016 for calendar year-end entities) and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which made targeted improvements to the recognition and measurement of financial assets and financial liabilities. The update changes how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The new guidance also changes certain disclosure requirements and other aspects of current US GAAP. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is permitted in some cases. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. It also offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The update eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The update clarifies principal vs agent accounting of the new revenue standard. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The update provide more clarification about identifying performance obligations and licensing. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients . The update provides some further guidance on assessing the collectability criteria, presentation of sales tax and other similar taxes collected from customers, noncash considerations and certain other matters related to transition and technical corrections. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption.  Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

F-6

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In June 2016, the FASB issued ASU No. 2016-13,  Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The guidance will be effective January 1, 2020, with early adoption permitted. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted.The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

Note 3 - Segment information

Operating segments

The Company’s fleet is regarded as one single global segment, and is reviewed by the Chief Operating Decision Maker as an aggregated sum of assets, liabilities and activities generating distributable cash to meet minimum quarterly distributions.

A breakdown of the Company’s contract revenues by customer for the three and six months ended June 30, 2016 and 2015 are follows:

	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016		2015
BP	40.2	%	45.3	%		39.2	%	48.0	%
ExxonMobil *	35.2	%	28.2	%		37.6	%	26.0	%
Tullow	15.8	%	14.4	%		14.9	%	14.0	%
Chevron	5.9	%	12.1	%		5.6	%	12.0	%
Other	2.9	%	0.0	%		2.7	%	0.0	%
Total	100.0	%	100.0	%		100.0	%	100.0	%

* The ExxonMobil drilling contract for the West Aquarius was assigned to Hibernia Management and Development Co. Ltd. which is a consortium majority owned by ExxonMobil.

Geographic Data

 

Revenues are attributed to geographical areas based on the country of operations for drilling activities, i.e. the country where the revenues are generated. The following presents the revenues and fixed assets by geographic area:

Revenues

(In US$ millions)	Three months ended June 30,							Six months ended June 30,
	2016			2015				2016			2015
United States	$	175.4		$	197.9			$	359.7		$	397.3
Canada	$	61.5		$	45.1			$	122.8		$	80.1
Ghana	$	57.4		$	58.6			$	115.0		$	114.8
Nigeria	$	46.1		$	63.6			$	107.3		$	126.7
Angola	$	45.4		$	20.1			$	91.4		$	41.5
Thailand	$	21.6		$	26.6			$	43.5		$	52.2
Other	$	11.1		$	5.3			$	22.8		$	5.3
Total	$	418.5		$	417.2			$	862.5		$	817.9

F-7

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of June 30, 2016 and December 31, 2015 the drilling units were located as follows:

Fixed Assets – Drilling units ⁽¹⁾  

(In US$ millions)	June 30, 2016			December 31, 2015
United States	$	2,873.7		$	2,927.4
Ghana	$	583.3		$	591.5
Angola	$	566.4		$	571.3
Canada	$	503.0		$	519.2
Nigeria	$	494.2		$	508.0
Thailand	$	246.6		$	251.5
Myanmar	$	176.6		$	178.4
Total	$	5,443.8		$	5,547.3

(1)	The fixed assets referred to in the table above include eleven drilling units at June 30, 2016 and December 31, 2015 .

Asset location at the end of the period is not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during the period.

Note 4 – Taxation

The Company's corporation tax and deferred tax balances at June 30, 2016 and December 31, 2015 are as follows:

(In $ millions)	June 30, 2016			December 31, 2015
Corporation tax liability	$	62.9		$	28.5
Deferred tax asset	$	23.4		$	34.2
Deferred tax liability	$	(53.0	)	$	(43.7	)

The Company's income tax expense for the three and six month periods ended June 30, 2016 and 2015 is as follows:

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Current tax expense	$	35.1		$	34.2		$	61.1		$	50.3
Deferred tax expense/(benefit)	8.5			(1.3		)	20.1			(3.1		)
Total income tax expense	$	43.6		$	32.9		$	81.2		$	47.2
Effective tax rate	28.0		%	14.6		%	30.5		%	15.2		%

Seadrill Partners LLC is tax resident in the United Kingdom. The Company's controlled affiliates operate and earn income in several countries and are subject to the laws of taxation within those countries. Subject to changes in the jurisdictions in which the Company's drilling units operate and/or are owned, differences in levels of income and changes in tax laws, the Company's effective income tax rate may vary substantially from one reporting period to another.

F-8

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The effective tax rate for the three and six months ended June 30, 2016 was 28.0% and 30.5% respectively ( June 30, 2015 : 14.6% and 15.2% ). The increase is primarily attributable to a change in laws in 2016 and in the balance of the relative components of the Company's actual and estimated 2016 income before income taxes generated, with more income earned in jurisdictions with higher tax rates and certain financial and other expenses receiving little or no tax benefit.  The Company’s forecast tax rate for 2016 takes these items into account on the basis of information available in the three and six months ended June 30, 2016.

Note 5 – Drilling units

(In $ millions)	June 30, 2016			December 31, 2015
Cost	$	6,463.2		$	6,434.2
Accumulated depreciation	(1,019.4		)	(886.9		)
Net book value	$	5,443.8		$	5,547.3

Depreciation expense was $132.5 million and $115.2 million for the six months ended June 30, 2016 and 2015 , respectively.

Note 6 – Debt

As of June 30, 2016 and December 31, 2015 , the Company had the following principal amounts of debt outstanding:

(In $ millions)	June 30, 2016			December 31, 2015
External debt agreements
Amended Senior Secured Credit Facilities	$	2,880.9		$	2,894.7
$1,450 Senior Secured Credit Facility	362.3			382.6
$420 West Polaris  Facility	297.0			315.0
Sub-total external debt	$	3,540.2		$	3,592.3
Less current portion of long-term external debt	(105.1		)	(105.3		)
Long-term external debt	$	3,435.1		$	3,487.0
Related party debt agreements
Rig Financing and Loan Agreements
West Vencedor  Loan Agreement	$	49.4		$	57.5
$440 Rig Financing Agreement	129.0			139.0
Sub-total Rig Financing and Loan Agreements	$	178.4		$	196.5
Other related party debt
$109.5 T-15  vendor financing facility	$	—		$	109.5
Total related party debt	$	178.4		$	306.0
Less current portion of related party debt	(36.3		)	(145.8		)
Long-term related party debt	$	142.1		$	160.2
Total external and related party debt	$	3,718.6		$	3,898.3

F-9

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Outstanding external debt as of June 30, 2016
(In $ millions)		Principal outstanding			Debt Issuance Costs			Total External Debt
Current portion of long-term external debt		$	105.1		$	(11.3	)	$	93.8
Long-term external debt		3,435.1			(42.2		)	3,392.9
Total		$	3,540.2		$	(53.5	)	$	3,486.7

Outstanding external debt as of December 31, 2015
(In $ millions)		Principal outstanding			Debt Issuance Costs			Total External Debt
Current portion of long-term external debt		$	105.3		$	(11.5	)	$	93.8
Long-term external debt		3,487.0			(46.6		)	3,440.4
Total		$	3,592.3		$	(58.1	)	$	3,534.2

The outstanding external and related party debt as of June 30, 2016 is repayable as follows:

(In US$ millions)	As of June 30,
2017	$	141.4
2018	754.3
2019	29.0
2020	29.0
2021	2,764.9
2022 and thereafter	0.0
Total outstanding debt	$	3,718.6

The significant developments relating to the Company's debt after December 31, 2015 are explained below.

The Company's facilities and related party loan agreements include financial and non-financial covenants applicable to the Company and Seadrill Limited ("Seadrill"). A description of the Company's borrowings including a list of these covenants are contained in Note 11 to the related notes of the audited 2015 financial statements included in the Company's annual report on Form 20-F for the year ended December 31, 2015, filed with the SEC on April 28, 2016.

April 2016 Amendments to Senior Secured Credit Facilities

On April 28, 2016, we agreed to certain covenant amendments in relation to our three secured credit facilities where both Seadrill Partners and Seadrill are guarantors. This forms part of a broader financing plan being negotiated between Seadrill, our largest unitholder, and its banking group. We have consented to these amendments on the grounds that they are beneficial to Seadrill Partners. Seadrill Partners' involvement in the broader Seadrill Limited refinancing is limited to these three facilities which may form part of the package being discussed. Alternatively, these facilities may be refinanced through other means.

The key terms and conditions of these agreements that affect the Company's $1,450 million Senior Secured Credit Facility, $440 million Rig Financing Agreement and the $420 million West Polaris Facility are as follows:

Key amendments and waivers:

•	Equity ratio: Seadrill is required to maintain a total equity to total assets ratio of at least 30.0% . Prior to the amendment, both total equity and total assets were adjusted for the difference between book and market

F-10

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

values of drilling units, as determined by independent broker valuations. The amendment removes the need for the market value adjustment from the calculation of the equity ratio until June 30, 2017.

•	Leverage ratio: Seadrill is required to maintain a ratio of net debt to EBITDA. Prior to the amendment the leverage ratio had to be no greater than 6.0 :1, falling to 5.5 :1 from October 1, 2016, and falling again to 4.5 :1 from January 1, 2017. The amendment retains the ratio at 6.0 :1 until December 31, 2016, and then increases to 6.5 :1 between January 1, 2017 and June 30, 2017.

•

Minimum-value-clauses: Seadrill’s secured bank credit facilities contain loan-to-value clauses, or minimum-value-clauses (“MVC”), which could require Seadrill to post additional collateral or prepay a portion of the outstanding borrowings should the value of the drilling units securing borrowings under each of such agreements decrease below required levels. Subject to compliance with the terms of the amendment, this covenant has been suspended until June 30, 2017.

•	Minimum Liquidity: Seadrill has previously been required to maintain a minimum of $ 150 million of liquidity. This has been reset to $ 250 million until June 30, 2017 in consideration for the above amendments.

F-11

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Additional undertakings:

•	Further process:

•	Seadrill has agreed to consultation, information provision and certain processes in respect of further discussions with its lenders under its senior secured credit facilities, including agreements in respect of progress milestones towards the agreement of, and implementation plan in respect of, a comprehensive financing package.

•	In addition Seadrill has agreed to certain additional restrictions which will apply during this process. Such restrictions shall apply to Seadrill and its consolidated subsidiaries only and therefore are not binding on the Company and its subsidiaries.

As of June 30, 2016 , the Company and Seadrill were in compliance with all covenants.

$109.5 T-15 Vendor Financing Facility

On May 13, 2016, the $109.5 million loan agreement with Seadrill relating to the acquisition of the T-15 was repaid at maturity.

Note 7 – Risk management and financial instruments

The Company is exposed to various market risks, including interest rate, foreign currency exchange and concentration of credit risks. The Company may enter into a variety of derivative instruments and contracts to maintain the desired level of exposure arising from these risks.

Interest rate risk management

The Company’s exposure to interest rate risk relates mainly to its floating interest rate debt and balances of surplus funds placed with financial institutions. This exposure is managed through the use of interest rate swaps and other derivative arrangements. The Company’s objective is to minimize exposure to fluctuating interest rates by using interest rate swaps to obtain a fixed interest rate on a portion of its floating rate debt. The extent to which the Company utilizes interest rate swaps and other derivatives to manage its interest rate risk is determined by the net debt exposure and its views on future interest rates.

Interest rate swap agreements

At June 30, 2016 the Company was party to interest rate swap agreements with Seadrill and third parties with a combined outstanding principal of $3,475.0 million ( December 31, 2015 : $3,507.2 million ). These agreements do not qualify for hedge accounting and accordingly any changes in the fair values of the swap agreements are included in the consolidated and combined statement of operations under “(Loss)/gain on derivative financial instruments”. The total fair value of the related party interest rate swaps, with Seadrill as counterparty, was a liability of $6.5 million at June 30, 2016 ( December 31, 2015 : an asset of $2.2 million ). The fair value of the related party interest rate swaps are classified within amounts due to related party in the consolidated balance sheet. The total fair value of the third party interest rate swaps outstanding at June 30, 2016 was a liability of $149.6 million ( December 31, 2015 : a liability of $84.2 million ). The fair value of the third party interest rate swaps are classified within other current liabilities in the consolidated balance sheet. The total loss recognized for the six months ended June 30, 2016 was $98.0 million ( June 30, 2015 : loss of $33.6 million ), consisting of an unrealized loss of $74.0 million and a realized loss of $24.0 million ( June 30, 2015 : unrealized loss of $8.7 million and a realized loss of $24.9 million ).

F-12

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The Company’s interest rate swap agreements as of June 30, 2016 , were as follows:

Outstanding principal					Receive rate		Pay rate		Maturity of contract
(In US$ millions)
$	408.8		(1) (2)		3 month LIBOR		1.10%		July 2, 2018
$	100.0		(2)		3 month LIBOR		1.36%		October 29, 2019
$	65.3		(1) (2)		3 month LIBOR		1.11%		June 19, 2020
$	63.7		(1) (2)		3 month LIBOR		1.93%		December 21, 2020
$	2,837.2		(1) (3)		3 month LIBOR		2.45 - 2.52%		February 21, 2021

(1)	The outstanding principal of these amortizing swaps falls with each capital repayment of the underlying loans.

(2)	Related party interest rate swap agreements.

(3)	The Company has a LIBOR floor of 1% whereby the Company receives 1% when LIBOR is below 1% .

The counterparties to the above interest rate swap agreements are Seadrill and various commercial banks. The Company believes the counterparties to be creditworthy.

Foreign Currency Risk

The Company and all of its subsidiaries use the US Dollar as their functional currency because the majority of their revenues and expenses are denominated in US Dollars. The Company's reporting currency is also US Dollars. The Company does, however, earn revenue and incur expenses in Canadian Dollars and there is a risk that currency fluctuations could have an adverse effect on the value of the Company's cash flows.

Credit risk

The Company has financial assets, which expose the Company to credit risk arising from possible default by counterparties. The Company considers its counter-parties to be creditworthy and does not expect any significant loss to result from non-performance by such counterparties. The Company in the normal course of business does not demand collateral from its counterparties.

Fair values of financial instruments

 

The carrying value and estimated fair value of the Company's financial instruments at June 30, 2016 and December 31, 2015 were as follows:

	June 30, 2016								December 31, 2015
(In US$ millions)	Fair value				Carrying value				Fair value				Carrying value
Cash and cash equivalents	$	450.1			$	450.1			$	319.0			$	319.0
Current portion of long-term debt principal	89.2				105.1				88.0				105.3
Current portion of long term debt to related party principal	36.3				36.3				145.8				145.8
Long-term debt principal	1,843.3				3,384.4				1,763.5				3,487.0
Long-term portion of debt to related party principal	142.1				142.1				160.2				160.2

The carrying value of cash and cash equivalents, which are highly liquid, is a reasonable estimate of fair value and categorized at level 1 on the fair value measurement hierarchy.

F-13

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The fair value of the current and long-term portion of floating rate debt (consisting of external debt, rig financing agreements with Seadrill and vendor financing agreements with Seadrill) are not publicly traded and are estimated to be equal to the carrying value since they bear variable interest rates, which are reset on a quarterly basis, except for the rates on the $440 million Rig Financing Agreement which are reset on a semi-annual basis. This debt is not freely tradable and cannot be purchased by the Company at prices other than the outstanding balance plus accrued interest. This is categorized at level 2 on the fair value measurement hierarchy.

The Amended Senior Secured Credit Facilities are freely tradable and therefore the fair value of the current and long-term portion of the outstanding debt have been set equal to the price at which they were traded at on June 30, 2016 and December 31, 2015 . The Company has categorized this at level 1 on the fair value measurement hierarchy.

Other financial instruments that are measured at fair value on a recurring basis are as follows:

	Fair value				Fair value measurements at reporting date using
					Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(In US$ millions)	June 30, 2016				(Level 1)			(Level 2)			(Level 3)
Liabilities:
Derivative instruments – Interest rate swap contracts	$	(149.6	)		$	—		$	(149.6	)	$	—
Derivative instruments – Interest rate swap contracts (Related party)	(6.5		)		—			(6.5		)	—
Related party deferred and contingent consideration	(210.1		)		—			(210.1		)	—
Total liabilities	$	(366.2	)		$	—		$	(366.2	)	$	—

	Fair value				Fair value measurements at reporting date using
					Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(In US$ millions)	December 31, 2015				(Level 1)			(Level 2)			(Level 3)
Assets:
Derivative instruments – Interest rate swap contracts (related party)	$	2.2			—			$	2.2		—
Total assets	$	2.2			$	—		$	2.2		$	—
Liabilities:
Derivative instruments – Interest rate swap contracts	$	(84.2	)		$	—		$	(84.2	)	$	—
Related party deferred and contingent consideration	(245.8		)		—			(245.8		)	—
Total liabilities	$	(330.0	)		$	—		$	(330.0	)	$	—

F-14

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

US GAAP emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, US GAAP establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

Level one input utilizes unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level two inputs are inputs other than quoted prices included in level one that are observable for the asset or liability, either directly or indirectly. Level two inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability, other than quoted prices, such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level three inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The fair values of interest rate swaps are calculated using well-established independent valuation techniques, using the income method approach, applied to contracted cash flows and LIBOR interest rates as of June 30, 2016 and December 31, 2015 .

The fair value of the related party deferred and contingent consideration relating to the purchase of the West Vela and the West Polaris is estimated to be equal to the carrying value since the liabilities have been calculated using the estimated future cash outflows discounted back to the present value. These liabilities are considered to be at estimated market rates. These are categorized at level 2 on the fair value measurement hierarchy.

Retained risk

Physical Damage Insurance

Seadrill has purchased hull and machinery insurance to cover for physical damage to its drilling units and those of the Company and charges the Company for the associated cost for its respective drilling units. The Company retains the risk for the deductibles relating to physical damage insurance on the Company’s fleet. The deductible is currently a maximum of $5.0 million per occurrence.

The Company has elected to place an insurance policy for physical damage to rigs and equipment caused by named windstorms in the U.S. Gulf of Mexico ( West Sirius , West Capricorn , West Vela and West Auriga ) with a Combined Single Limit of $ 100.0 million in the annual aggregate, which includes loss of hire. The policy expires April 30, 2017.

Loss of Hire Insurance

Seadrill purchases insurance to cover for loss of revenue for their operational rigs in the event of extensive downtime caused by physical damage to its drilling units and those of the Company, where such damage is covered under Seadrill’s physical damage insurance, and charges the Company for the cost related to the Company’s fleet.

The loss of hire insurance has a deductible period of 60 days after the occurrence of physical damage. Thereafter, insurance policies according to which the Company is compensated for loss of revenue are limited to 290 days per event and aggregated per year. The daily indemnity ranges from 75% to 100% of the contracted dayrate. The Company retains the risk related to loss of hire during the initial 60 day period, as well as any loss of hire exceeding the number of days permitted under insurance policy. If the repair period for any physical damage exceeds the number of days permitted under the Company’s loss of hire policy, it will be responsible for the costs in such period. The Company does not purchase loss of hire insurance on the T-15 and T-16 .

F-15

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Protection and Indemnity Insurance

Seadrill purchases protection and indemnity insurance and excess liability insurance for personal injury liability for crew claims, non-crew claims and third-party property damage including oil pollution from the drilling units to cover claims up to $250.0 million per event and in the aggregate for the West Vencedor , T-15 and T-16; up to $400.0 million per event and in the aggregate for the West Aquarius, West Leo and West Polaris ; and up to $750.0 million per event and in the aggregate for the West Auriga and the West Vela .

Effective June 1, 2015, the protection and indemnity insurance for the West Sirius was reduced to $500 million . Effective May 16, 2016, the limit for West Capricorn was reduced to $500 million . Effective May 23, 2016, the limit for West Capella was reduced to $300 million . This is due to no drilling activities.

The Company retains the risk for the deductible of up to $0.5 million per occurrence relating to protection and indemnity insurance.

Concentration of Risk

There is a concentration of credit risk with respect to cash and cash equivalents as most of the amounts are deposited with Nordea Bank Finland Plc and Danske Bank A/S. The Company considers these risks to be remote.

There is a concentration of credit risk with respect to revenue as the Company has customers that represent more than 10% of total revenues. Refer to Note 3 - Segment Information for an analysis of the Company's revenue by customer.

F-16

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 8 – Related party transactions

The Company has entered into certain agreements with affiliates of Seadrill to provide certain management and administrative services, as well as technical and commercial management services. Seadrill has also provided financing arrangements as described within this note below.

Net expenses/(income) from Seadrill:

(In US$ millions)	Three months ended June 30,							Six months ended June 30,
	2016			2015				2016			2015
Management and administrative fees (a) and (b)	$	14.2		$	12.3			$	33.2		$	25.1
Rig operating costs (c)	6.2			6.5				13.5			12.0
Insurance premiums (d)	4.0			5.4				9.1			10.5
Interest expense (e)	2.5			3.5				5.9			7.0
Derivative losses/(gain) (e)	2.8			(0.8		)		11.2			7.1
Commitment fee on revolving credit facility (f)	0.5			0.5				1.0			1.0
Bareboat charters expense/(income) (g)	2.6			(0.5		)		4.6			(4.6		)
Other revenues - Nigerian operations (h)	(2.8		)	(2.3		)		(4.8		)	(7.0		)
Accretion of discount on deferred consideration (l)	3.4			3.2				7.8			7.7
Total net related party expenses	$	33.4		$	27.8			$	81.5		$	58.8

Receivables/(payables) from related parties:

(In US$ millions)	June 30, 2016			December 31, 2015
Trading balances due from Seadrill and subsidiaries (i)	$	141.1		$	175.9
Trading balances due to Seadrill and subsidiaries (i)	(295.7		)	(354.7		)
Rig financing agreements with Seadrill (j)	(129.0		)	(139.0		)
Loan agreement with Seadrill (j)	(49.4		)	(57.5		)
Vendor financing loan agreement with Seadrill (k)	—			(109.5		)
Deferred and contingent consideration to related party - short term portion (l)	(37.8		)	(60.4		)
Deferred and contingent consideration to related party - long term portion (l)	(172.3		)	(185.4		)
Derivatives with Seadrill - interest rate swaps (m)	(6.5		)	2.2

(a) Management and administrative services agreements – In connection with the IPO, the Company entered into a management and administrative services agreement with Seadrill Management a wholly owned subsidiary of Seadrill, pursuant to which Seadrill Management provides the Company certain management and administrative services. The services provided by Seadrill's subsidiaries are charged at cost plus service fee. In April 2016, the agreement was extended for an indefinite term and can be terminated providing 90 days written notice. During the six months ended June 30, 2016 this fee ranged from 4.85% to 8% of costs and expenses incurred in connection with providing these services.

(b) Technical and administrative service agreements – In connection with the IPO, subsidiaries of the Company entered into certain advisory, technical and/or administrative services agreement with subsidiaries of Seadrill. The services provided by Seadrill's subsidiaries are charged at cost plus service fee equal to approximately 5% of Seadrill's costs and expenses incurred in connection with providing these services.

(c) Rig operating costs – relates to rig operating costs charged by the Angolan service company for the West Polaris for the three and six months ended June 30, 2016 and for the West Vencedor for the three and six months ended June 30, 2015 .

(d) Insurance premiums – the Company’s drilling units are insured by a subsidiary of Seadrill and the insurance premiums incurred are recharged to the Company.

(e) Interest expense and loss on derivatives - relates to interest charged on related party loan arrangements outlined below and the recharge on interest rate swaps with Seadrill. See section (m) for further details on derivative arrangements.

(f) $100 million revolving credit facility – In October 2012 the Company entered into a $300 million revolving credit facility with Seadrill. The facility is for a term of 5 years and bears interest at a rate of LIBOR plus 5%  per annum, with an annual 2% commitment fee on the undrawn balance. On March 1, 2014, the revolving credit facility was amended to reduce the maximum borrowing limit from $300 million to $100 million . During the six months ended June 30, 2016 the Company did not draw on this facility and therefore as of June 30, 2016 the facility remains undrawn.

(g) Bareboat charters - I n connection with the transfer of the West Aquarius operations to Canada, the West Aquarius drilling contract was assigned to Seadrill Canada Ltd., a wholly owned subsidiary of OPCO, necessitating certain changes to the related party contractual arrangements relating to the West Aquarius. Seadrill China Operations Ltd, the owner of the West Aquarius of OPCO, had previously entered into a bareboat charter arrangement with Seadrill Offshore AS, a wholly-owned subsidiary of Seadrill, providing Seadrill Offshore AS with the right to use the West Aquarius. In October 2012, this bareboat charter arrangement was replaced with a new bareboat charter between Seadrill China Operations Ltd and Seadrill Offshore AS, and at the same time, Seadrill Offshore AS entered into a bareboat charter arrangement providing Seadrill Canada Ltd. with the right to use the West Aquarius in order to perform its obligations under the drilling contract. For the six months ended June 30, 2016 the net effect to the Company of the bareboat charters was net expense of $4.6 million ( June 30, 2015 : net income of $4.6 million ).

(h) Other revenues - Nigeria - The Company earns revenues from Seadrill within its Nigerian service company for certain services, including the provision of onshore and offshore personnel for Seadrill's West Jupiter and West Saturn drilling rigs. For the six months ended June 30, 2016 the Company earned revenues from the Nigerian service company of $4.8 million ( June 30, 2015 $7.0 million ).

(i) Trading balances – Receivables and payables with Seadrill and its subsidiaries are comprised primarily of unpaid management fees, advisory and administrative services, as well as, accrued interest and interest rate swap agreements. In addition, certain receivables and payables arise when the Company pays an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Trading balances to Seadrill and its subsidiaries are unsecured, interest free and intended to be settled in the ordinary course of business.

(j) Rig financing agreements and loan agreements – See Note 11 of the Company's audited 2015 financial statements for details of the $440 million Rig Financing Agreement and West Vencedor Loan Agreement.

(k) $109.5 million vendor financing loan - On May 17, 2013, Seadrill Partners Operating LLC entered into a $109.5 million loan agreement with Seadrill as the lender to finance the acquisition of the T-15 . The T-15 loan agreement bears interest at a rate of LIBOR plus 5% and matured in May 2016.

(l) Deferred consideration to related party - On the acquisition of the West Vela in 2014 the Company recognized a long term deferred consideration balance of $61.7 million and a long term contingent consideration balance of $49.5 million . On the acquisition of the West Polaris in 2015 the Company recognized a Seller's Credit balance of $44.6 million and a long term contingent consideration balance of $95.3 million . As of June 30, 2016 the short-term portion of these balances relating to the West Vela and West Polaris are $29.6 million and $8.2 million respectively, which are presented within other related party payables on the balance sheet. As of June 30, 2016 the long-term portion of the balances relating to the West Vela and West Polaris are $84.0 million and $88.0 million respectively. During the six months ended June 30, 2016 , the Company recognized accretion on the unwind of the discount of the contingent liabilities of $7.8 million .

(m) Derivatives with Seadrill - Interest rate swaps - As of June 30, 2016 , the Company was party to interest rate swap agreements with Seadrill for a combined outstanding principal amount of approximately $637.8 million at rates between 1.10%  per annum and 1.93%  per annum. The swap agreements mature between July 2018 and December 2020 . The net loss recognized on the Company’s interest rate swaps with Seadrill for the six months ended June 30, 2016 , was $11.2 million (six months ended June 30, 2015 : net loss of $7.1 million ).

F-17

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Other agreements and transactions with Seadrill

West Sirius bareboat charter financing loan

Effective December 17, 2015, an operating subsidiary of the Company borrowed from a subsidiary of Seadrill $ 143 million (the " West Sirius loan") in order to provide sufficient immediate liquidity to meet the terms of its bareboat charter termination payment in connection with the West Sirius contract termination. Concurrently, Seadrill borrowed $143.0 million (the “Seadrill loan”) from a rig owning subsidiary of the Company in order to restore its liquidity with respect to the West Sirius loan.

Each loan bears interest at a rate of LIBOR plus a margin of 0.56% and matures in July 2017. Each of the loan parties understand and agree that the loan agreements act in parallel with each other. The outstanding balance of each loan as at June 30, 2016 was $ 93.7 million (December 31, 2015: $ 143.0 million ).

These transactions have been classified within current and long-term portions of "Amount due from related party", "Related party payable" and "Long-term related party payable".

Spare parts agreement with Seadrill

During 2015, a subsidiary of Seadrill entered into an agreement with the Company to store spare parts of the Company's West Sirius rig while it is stacked. Seadrill is responsible at its own cost for the moving and storing of the spare parts during the stacking period. Seadrill may use the spare parts of the West Sirius during the stacking period, but must replace them as required by the Company at its own cost.

Indemnifications and guarantees

Tax indemnifications

Under the Omnibus Agreement, and purchase and sale agreements relating to acquisitions subsequent to the IPO, Seadrill has agreed to indemnify the Company against any tax liabilities arising from the operation of the assets contributed or sold to the Company prior to the time they were contributed or sold.

Customs guarantees

Seadrill provides customs guarantees in connection with the Company’s operations, primarily in Nigeria, in favor of banks. Custom guarantees in respect of operations in Nigeria were terminated effective May 17, 2016.

Performance guarantees

Seadrill provides performance guarantees in connection with the Company’s drilling contracts in favor of customers of the Company.

Environmental and other indemnifications

Under the Omnibus Agreement, and purchase and sale agreements relating to acquisitions subsequent to the IPO, Seadrill has agreed to indemnify the Company against certain environmental and toxic tort liabilities with respect to the assets that Seadrill contributed or sold to the Company to the extent arising prior to the time they were contributed or sold.

In connection with the West Vela acquisition, Seadrill agreed to indemnify the Company, Seadrill Capricorn Holdings LLC and Seadrill Vela Hungary Kft. against any liability they may incur under the credit facility financing the West Vela in respect of debt that is related to other rigs owned by Seadrill that are financed under the same credit facility as the West Vela .

F-18

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 9 – Commitments and contingencies

Pledged Assets

The book value of assets pledged under financing arrangements at June 30, 2016 was $5,265.6 million ( December 31, 2015 : $5,367.7 million ).

Guarantees

At June 30, 2016 , the Company had issued the following guarantees in favor of third parties which is the maximum potential future payment for each guarantee:

(In US$ millions)	June 30, 2016		December 31, 2015
Guarantees to customers of the Company's own performance	370.0		370.0
Guarantees in favor of banks	1.8		85.8
Total	371.8		455.8

Note 10 - Earnings per unit and cash distributions

The calculations of basic and diluted earnings per unit are presented below.

	Three months ended June 30,							Six months ended June 30,
	2016			2015				2016			2015
(In US$ millions)
Net income allocated to:
Common unitholders	$	59.8		$	61.9			$	95.9		$	98.0
Subordinated unitholders	—			13.6				—			21.5
Seadrill Member Interest	—			25.8				—			20.0
Net income attributable to Seadrill Partners LLC owners	$	59.8		$	101.3			$	95.9		$	139.5
Weighted average units outstanding (basic and diluted)   (in thousands) :
Common unitholders	75,278			75,278				75,278			75,278
Subordinated unitholders	16,543			16,543				16,543			16,543
Earnings per unit (basic and diluted):
Common unitholders	$	0.79		$	0.82			$	1.27		$	1.30
Subordinated unitholders	$	0.00		$	0.82			$	0.00		$	1.30
Cash distributions declared and paid in the period per unit (1)	$	0.2500		$	0.5675			$	0.5000		$	1.1350

(1) Distributions were declared and paid only with respect to the common units in 2016.

* On August 12, 2016 , the Company paid a distribution of $0.10 per common unit relating to the three months ended June 30, 2016 .

Earnings per unit is calculated as described in Note 16 to the audited 2015 financial statements included in the Company's annual report on Form 20-F for the year ended December 31, 2015, filed with the SEC on April 28, 2016.

F-19

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SEADRILL PARTNERS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The distributions made in February 2016, May 2016, and August 2016 in respect of the fourth quarter of 2015, first quarter of 2016 and second quarter of 2016, were less than the Minimum Quarterly Distribution (as defined in the Company's First Amended and Restated Operating Agreement). Arrearages in the payment of the minimum quarterly distribution on the common units must be paid before any distributions of available cash from operating surplus may be paid in the future on the subordinated units.

Note 11 – Subsequent Events

Distribution Paid

On August 12, 2016 , the Company paid a cash distribution to its common unitholders with respect to the quarter ended June 30, 2016 of $0.10 per unit.

West Vencedor

The West Vencedor completed its current contract on August 18, 2016 and is currently being marketed for new work. The unit has mobilized to Singapore and is expected to remain there during its idle period.

F-20

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EXHIBITS

The following exhibits are filed as part of this report:

Exhibit No.		Description
101		The following financial information from Seadrill Partners LLC’s Report on Form 6-K for the quarterly period ended June 30, 2016 formatted in XBRL (eXtensible Business Reporting Language): (i) Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015; (ii) Unaudited Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015; (iii) Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015; (iv) Unaudited Consolidated Statements of Changes in Members’ Capital for the six months ended June 30, 2016 and 2015; and (v) Notes to the Unaudited Consolidated Financial Statements.

THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION STATEMENTS OF THE REGISTRANT:

REGISTRATION STATEMENT ON FORM F-3 (NO. 333-192053) ORIGINALLY FILED WITH THE SEC ON NOVEMBER 1, 2013

REGISTRATION STATEMENT ON FORM F-3 (NO. 333-196286) ORIGINALLY FILED WITH THE SEC ON MAY 27, 2014

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SEADRILL PARTNERS LLC

Date: September 30, 2016    

By:	/s/ Mark Morris
	Name: Mark Morris    Title: Chief Executive Officer

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