SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced that it has signed a contract with ExxonMobil Canada Ltd. for the harsh environment semi-submersible rig Hercules with an estimated contract value of approximately $50 million.

The contract is expected to commence in the second quarter of 2023 with a duration of approximately 135 days and an extension option of 60 days.

Hercules is currently employed on a bareboat charter with Seadrill Limited, expected to be finalized in late fourth quarter 2022. Odfjell Drilling will manage the rig on our behalf thereafter, and the rig will undergo a scheduled special periodic survey in Norway before mobilization to Canada.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: «We are pleased to announce this first contract for the Hercules after finalizing the long-term charter to Seadrill. Odfjell Drilling is an industry leading harsh environment drilling contractor, and together we are committed to deliver best-in-class drilling services in the most demanding operating environments. We see an increasing demand for harsh environment oil exploration and development, in a market with few available drilling rigs with these capabilities. We are therefore optimistic on the prospects for longer-term employment from 2024 onwards for Hercules».

SFL Corporation Ltd. press release