SFL – Ruling from Borgarting Court of Appeal in the Seadrill Legal Case

Borgarting Court of Appeal has ruled in favor of SFL Corporation Ltd. in the legal dispute between SFL's rig-owning subsidiary and Seadrill Ltd.'s subsidiaries, following the return of the drilling rig Hercules to SFL in December 2022. The unanimous decision found Seadrill to have violated the contract upon redelivery of the rig, resulting in a total compensation of approximately NOK 525 million ($55 million) for SFL's subsidiary, which includes damages, late payment interest, and legal costs.

This judgment aligns with the February 2025 Oslo District Court ruling, with the additional interest increasing the overall amount payable. SFL has been granted its full legal expenses for the proceedings before both courts. The company will thoroughly review the judgment, and either party may appeal to the Supreme Court of Norway within a month of the judgment's delivery.

However, an appeal is contingent upon receiving leave from the Supreme Court's Appeals Selection Committee, which is granted in limited circumstances.