Bermudian-based SFL Corporation Ltd, one of the world's largest ship-owning companies, has signed a $100 million drilling contract in Canada with a subsidiary of Equinor ASA for the harsh environment semi-submersible rig Hercules.

The company said the contract was for one well, plus one optional well, and was 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: “We are pleased to sign the third contract for the Hercules since we took re-delivery 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.”

SFL’s fleet of vessels is comprised of container vessels, car carriers, tanker vessels, bulkers and offshore drilling rigs.