Could you please check how I turned the sentences from direct into indirect speech? Thank you.

1) Look, Merlin, Arthur said, “the word Excalibur is written on it.”
“Yes, Excalibur is the greatest sword in the world. But its scabbard is more precious:” “It has a great magic power,” said Merlin. “When you wear it, you never bleed even if you are wounded. When you fight, you must always have the scabbard with you.”

2) Merlin revealed Arthur that, though the sword was the greatest in the world, its scabbard was even more precious because of its great magic power. Actually, when someone wore it, he never bled (would never bleed) even if he was wounded. When he fought, he had (needed?) always to have the scabbard with him.
(Or Merlin recommended Arthur should have the scabbard always with hin when he fought).

1. There is no indirect speech here.

2. Merlin emphasized to Arthur that, though ... he never bled ... When he fought, he needed to have the scabbard with him always.