SFL Corp’s Hercules Rig Secures $100m Contract with Equinor in Canada
SFL Corporation, owned by John Fredriksen, has announced that its Hercules rig has secured a significant contract worth approximately $100 million with Equinor in Canada. The New York-listed company, which has diverse investments in tankers, containerships, dry bulk vessels, and car carriers, expects the contract to commence in the second quarter of 2024 and last for around 200 days. This deal, consisting of one well and an optional well, further strengthens SFL’s presence in the Canadian market.
Ole B. Hjertaker, CEO of SFL Management, stated that this contract, along with other recent contract awards in the industry, is indicative of a buoyant market for advanced harsh environment semi-submersibles. Hjertaker believes that this trend will persist for an extended period, highlighting the robust demand for such rigs.
Managed by Odfjell Drilling, the Hercules rig is presently engaged with ExxonMobil in Canada. However, it will subsequently transition to Namibia for a contract with Galp that is set to commence in the fourth quarter of 2023. With the addition of the Equinor contract, SFL’s revenue backlog on the rig is now approximately $200 million.
SFL Corporation also owns the jackup rig Linus, built in 2014. Currently on charter with ConocoPhillips Skandinavia until the fourth quarter of 2028, the Linus rig contributes further stability to SFL’s diversified portfolio in the offshore drilling sector.
This latest development signifies SFL’s strong position in the market and reinforces its reputation as a reliable partner for major oil and gas companies. By securing high-value contracts, the company continues to deliver solid earnings and create value for its stakeholders.
With the outlook for advanced harsh environment semi-submersibles remaining positive, SFL is well-positioned to capitalize on future opportunities in the offshore drilling sector. The company’s strategic investments and strong management ensure its ability to sustain growth and remain a dominant player in the industry.
In summary, SFL Corporation’s Hercules rig has secured a $100 million contract with Equinor in Canada, further solidifying the company’s foothold in the offshore drilling market. The contract, expected to commence in 2024, is a testament to SFL’s strong outlook and ability to deliver value to its stakeholders. With additional contracts and a diversified portfolio, SFL is well-prepared to capitalize on future opportunities in the sector.
