Appeals court orders Seadrill to pay SFL subsidiary in Hercules rig dispute
On October 13, 2026, Borgarting Court of Appeal found that Seadrill subsidiaries breached the contract when returning the Hercules drilling rig to an SFL subsidiary. The court ordered payment of approximately NOK 525 million, or approximately $55 million, including compensation, late-payment interest and legal costs. The ruling largely upheld the Oslo District Court’s February 2025 decision, with the payable amount increased by accrued interest.
Why it matters
The decision gives SFL’s subsidiary a court-ordered claim against Seadrill while imposing the stated payment obligation on Seadrill subsidiaries. Either party may appeal to Norway’s Supreme Court within one month of service, subject to the court granting leave.
Key facts
- 1Borgarting Court of Appeal unanimously found that Seadrill breached the contract when redelivering the Hercules rig. finance.yahoo.com
- 2The court ordered Seadrill subsidiaries to pay approximately NOK 525 million, including compensation, late-payment interest and legal costs. finance.yahoo.com
- 3SFL’s subsidiary received full legal costs for proceedings before both the Oslo District Court and Borgarting Court of Appeal. finance.yahoo.com
- 4Either party may appeal to Norway’s Supreme Court within one month of service of the judgment, subject to leave to appeal. finance.yahoo.com
- 5The underlying rig was redelivered to SFL in December 2022. finance.yahoo.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.