SFL Secures Offshore Drilling Contract with Equinor in Canada

SFL Corporation (NYSE: SFL) has secured a drilling contract in Canada with Equinor ASA for the semi-submersible rig Hercules, with an estimated value of $100 million for one well plus one optional well.

The contract is expected to commence in Q2 2024 and will be managed by Odfjell Drilling on behalf of SFL. It’s duration is approximately 200 days, including transit to Canada.

Hercules is currently drilling for ExxonMobil in Canada before it will transit to Namibia for a contract with Galp Energia expected to commence in the fourth quarter of 2023.

This latest contract brings SFL’s revenue backlog on Hercules to approximately $200 million and secures employment for the rig until Q4 2024.

“We are pleased to sign the third contract for the Hercules since we took redelivery of the rig at the end of 2022 with yet another blue-chip operator,” said Ole B. Hjertaker, CEO of SFL Management AS. “With this contract, SFL has now approximately $200 million of revenue backlog on Hercules and secured undisrupted employment for the rig until the fourth quarter of 2024. This contract together with other recent contract rewards in the industry illustrates that the market for advanced harsh environment semi submersibles is firming and expected to remain strong for a prolonged period.”

Equinor operates a number of discoveries in the Flemish Pass Basin on the east coast of Canada, including the Bay du Nord discovery, which is one of Canada’s largest offshore discoveries. However, due to rising costs, Equinor announced in May that it would postpone the Bay du Nord project for up to three years.