SFL secures favorable ruling in Seadrill drilling rig dispute

SFL Corporation has announced that Norway’s Borgarting Court of Appeal has ruled in favor of its rig-owning subsidiary in a contractual dispute with subsidiaries of Seadrill Ltd., ordering the latter to pay approximately NOK 525 million ($55 million).

The case concerns the redelivery of the drilling rig Hercules to SFL in December 2022. In a unanimous judgment, the Court of Appeal concluded that Seadrill had breached its contractual obligations when returning the vessel.

The amount awarded includes compensation, late payment interest and legal costs. SFL has also been awarded its full legal expenses for proceedings before both the Oslo District Court and the Borgarting Court of Appeal.

Appeals court largely upholds earlier judgment

The ruling largely confirms a decision issued by the Oslo District Court in February 2025, which had previously found in favor of SFL’s subsidiary.

According to SFL, the total amount payable has increased since the original ruling due to accrued interest. The approximately NOK 525 million award therefore represents the combined amount of compensation, interest and legal costs, rather than compensation alone.

The company said it will review the judgment in detail before determining its next steps.

Although the Court of Appeal has delivered its ruling, the legal proceedings may not yet be concluded. Either party has the right to appeal to the Supreme Court of Norway within one month of receiving formal service of the judgment.

Any further appeal would require permission from the Supreme Court’s Appeals Selection Committee, which grants leave to appeal only in limited circumstances.

SFL has not indicated whether the judgment will be appealed or when any payment might be received.