Policy
Seadrill ordered to pay $55 million in rig dispute
A Norwegian appeals court has ruled against Seadrill, increasing its financial liability in a contract breach case brought by SFL Corporation.
Key points
- The Borgarting Court of Appeal found Seadrill breached contract terms during the 2022 redelivery of the Hercules drilling rig.
- Seadrill must pay approximately $55 million, covering compensation, interest, and legal costs for both court levels.
- The decision largely affirms a February 2025 ruling from the Oslo District Court.
What happened
According to Offshore Energy, a Norwegian appeals court has unanimously ruled that offshore drilling contractor Seadrill violated its agreement with SFL Corporation during the December 2022 redelivery of the Hercules semi-submersible rig. The Borgarting Court of Appeal ordered Seadrill to pay approximately NOK 525 million, equivalent to roughly $55 million, which includes compensation, accrued interest, and legal fees for both rounds of legal proceedings.
The dispute began when SFL filed a claim in the Oslo District Court in March 2023, arguing that the rig was not returned in the agreed contractual condition. In February 2025, the district court ruled in favour of SFL's subsidiary, initially setting the payment at around $48 million. The higher total in the recent appeal reflects accumulated interest over the course of the legal battle.
What comes next
SFL has secured full legal costs for its appearances before both the district and appeals courts. Seadrill retains the option to petition the Supreme Court of Norway within one month, though the country's highest court only grants leave to hear appeals under restricted circumstances.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Policy sets the direction for energy investment: national transition plans, market reforms such as Nigeria’s Electricity Act 2023, and global commitments under the Paris Agreement.
100.0% of people in Norway had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
