The Borgarting Court of Appeal in Norway has issued a unified ruling stating that Seadrill breached its contract with SFL Corp. regarding the Hercules drilling rig in December 2022. According to this ruling, Seadrill is required to pay an amount equivalent to 525 million Norwegian kroner (approximately 55 million dollars) to the subsidiary of SFL that owns the rig.
Details of the Ruling and Its Consequences
This ruling primarily affirms the decision of the Oslo District Court issued in February 2025. The total payment amount has increased since then due to accrued interest. According to this ruling, SFL will also receive its full legal costs for both the district court and appeal stages.
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Possibility of Appeal and Further Review
SFL has stated that it will carefully review this ruling. Each party may appeal to the Supreme Court of Norway within one month of receiving the ruling. However, an appeal is only possible if the Supreme Court's selection committee allows it, which is only done under limited circumstances.
This ruling could have significant impacts on the business relationship between the two companies and may also serve as an example of legal challenges in the offshore drilling industry. Given that Seadrill is one of the leading companies in this industry, this ruling could influence future decision-making for this company as well as others in the drilling sector.
