SFL Corporation has won a Norwegian appeals court ruling in its contract dispute with Seadrill over the redelivery of the offshore drilling rig Hercules, with the court ordering Seadrill to pay approximately $55 million (NOK 525 million).
The Borgarting Court of Appeal unanimously ruled that Seadrill breached its contractual obligations when returning the rig to SFL's rig-owning subsidiary in December 2022.
The award includes compensation, late-payment interest and legal costs, with SFL receiving full reimbursement of its legal expenses for proceedings before both the Oslo District Court and the Borgarting Court of Appeal.
The latest judgment largely upholds a February 2025 ruling by the Oslo District Court, with the total amount payable increasing because of accrued interest.
According to Seadrill's financial disclosures for the six months ended June 30, 2026, the dispute began in March 2023, when SFL Hercules Ltd. filed a claim concerning the redelivery of Hercules, a 2008-built sixth-generation deepwater and harsh environment rig.
The Oslo District Court initially ordered Seadrill to pay approximately $37 million, plus interest and legal costs of around $11 million, based on exchange rates at the time of the February 2025 judgment.
Seadrill appealed the ruling in March 2025, arguing against the lower court's decision.
Either party may appeal to Norway's Supreme Court within one month of being served with the judgment, although an appeal can proceed only if the Supreme Court's Appeals Selection Committee grants permission.
The ruling therefore remains subject to a potential further appeal.
To remind, Norwegian offshore drilling contractor Odfjell Drilling took over the management of the Hercules semi-submersible drilling rig from Seadrill back in 2022.