SFL - New $100 Million Contract for Semi-Submersible Rig Hercules

SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced today that it has signed a drilling contract in Canada with a subsidiary of Equinor ASA for the harsh environment semi-submersible rig Hercules. The estimated contract value is approximately $100 million.

The contract is for one well plus one optional well, and is expected to commence in the second quarter of 2024. The duration for the firm contract period is approximately 200 days including transit to and from Canada. Odfjell Drilling will manage the rig on behalf of SFL under the contract.

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.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “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. 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.”

August 14, 2023

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

Investor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
[phone]
André Reppen, Chief Treasurer & Senior Vice President, SFL Management AS
[phone]
Marius Furuly, Vice President - IR, SFL Management AS
[phone]

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
[phone]

About SFL

SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is comprised of container vessels, car carriers, tanker vessels, bulkers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com