Abstract: A displacement annular swivel is disclosed consisting of a mandrel with a sleeve assembly positioned around the outside diameter of the mandrel. The sleeve assembly consists of at least one radial bushing such that the mandrel can be rotated and reciprocated within the sleeve assembly when the sleeve assembly is fixed in a stationary position. At least one sealing element is present on the sleeve assembly to radially seal against the outside diameter of the mandrel. A method for displacing drilling mud from a completed subsea wellbore is also disclosed consisting of closing a blowout preventer around the aforementioned tool connected to the work string. The tool thereby allows the work string to be rotated and reciprocated when the blowout preventer is closed. Drilling fluid can then be displaced from the wellbore by pumping a fluid such as completion brine through the work string and out the choke and kill lines.