SFL Corporation Ltd. announced today that the Borgarting Court of Appeal has issued its ruling regarding the legal case between the subsidiary owning the company's rig and several subsidiaries of Seadrill Ltd. This ruling was issued following the recovery of the Hercules drilling rig to SFL in December 2022.
Details of the Court Ruling
In the unanimous ruling of the Court of Appeal, it was determined that Seadrill was not compliant with the contract at the time of the recovery of the drilling rig. Accordingly, the company is obligated to pay a total of 525 million Norwegian kroner (approximately 55 million dollars) to the SFL subsidiary, which includes damages, late interest, and legal fees.
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Confirmation of the Oslo District Court Ruling
This ruling broadly confirms the ruling of the Oslo District Court in February 2025, and the total payment amount has increased due to accumulated interest. SFL has also received all its legal costs for the proceedings in the Oslo District Court and the Borgarting Court of Appeal.
SFL intends to thoroughly review the court ruling, and either party may appeal to the Supreme Court of Norway within one month from the date of notification of the ruling. An appeal will only be considered if the Supreme Court's Appeals Selection Committee grants permission for the appeal, which is only possible under limited circumstances.
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