Seadrill, a Bermuda-based offshore drilling contractor, has been found liable in a legal case for breach of contract during the delivery of the Hercules drilling rig to SFL Corporation. The Norwegian Court of Appeal unanimously held the company responsible for breaching the contract at the time of delivery of the Hercules rig in December 2022, affirming the previous ruling of the Oslo District Court.
Details of the Legal Case
After Seadrill exited Chapter 11 bankruptcy in February 2022 and in light of an agreement made with its creditors in July 2021, the company entered into a contract with SFL Corporation in May 2022, under which Odfjell Drilling was responsible for the marketing and management of the Hercules rig. In March 2023, SFL filed a complaint against Seadrill in the Oslo District Court, claiming that the drilling rig was not delivered in the agreed-upon condition.
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Court Ruling and Consequences
While SFL had requested $28 million in damages, the court issued a ruling in favor of SFL's subsidiary in February 2025, awarding approximately $48 million in damages, including interest and legal costs. The Borgarting Court of Appeal also upheld this ruling and increased the payable amount to about 525 million Norwegian kroner (approximately $55 million) due to accrued interest.
SFL has also received all its legal costs for the legal proceedings in both the Oslo District Court and the Borgarting Court of Appeal. The company intends to carefully review the issued ruling, as both parties may appeal to the Supreme Court of Norway within one month of the ruling notification.
The Hercules rig, built in 2008, is a sixth-generation drilling rig designed as a GVA 7500 and can accommodate 180 people. This rig can operate in water depths of 10,000 feet and has a maximum drilling depth of 35,000 feet.
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