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Suncor is hiring the drill rig for $170 million to support its work on the Terra Nova oilfield, Postmedia has learned
By Gary Kean
The offshore drill rig Hercules is returning to Newfoundland and Labrador in 2027. www.odfjelldrilling.com
Suncor Energy Inc. is contracting a semi-submersible drill rig for $170 million to support its work on the Terra Nova oilfield, 350 kilometres east of Newfoundland and Labrador.
Bermuda-based SFL Corporation Ltd. said it has signed “a drilling contract in Canada with a large, investment grade multinational oil and gas company” for the rig designed for harsh environments such as those found in the North Atlantic Ocean.
That company, Postmedia has learned, is Suncor, which did not provide an interview about its plans for the rig.
In an emailed statement, the company confirmed it has signed a contract with SFL Corporation for the rig “to support planned maintenance and reliability work at Terra Nova, beginning in 2027.”
What is the Hercules rig?
The rig being contracted is a familiar one off Newfoundland shores. The Hercules was most recently hired by Equinor ASA to conduct an offshore drilling program in 2024.
“We are very pleased to secure a new attractive contract for Hercules on the East Coast of Canada, where the rig has worked multiple times before,” Ole B. Hjertaker, chief executive officer of SFL Management AS, said in a prepared statement.
“We see significant demand for harsh environment, deepwater capable semi-submersibles towards the end of the decade and believe this contract should position the rig attractively for prospective drilling campaigns.”
The Hercules is currently in Norway and will be prepared for mobilization to Canada later this year.
Odfjell Drilling Ltd. will manage the rig on behalf of SFL under the contract.
What does this mean for NL’s offshore oil industry?
Rob Strong, an offshore oil and gas industry consultant and analyst, said the return of the Hercules is encouraging news for Canada’s offshore oil industry, especially for supply companies that service exploration.
“This means a lot for supply base operators, inspection companies, trucking companies, mud companies, caterings companies and the list goes on and on,” he said.
It’s also exciting, Strong said, given the recent announcement of a benefits deal for Equinor’s massive Bay du Nord project in the Flemish Pass, around 500 kilometres east of Newfoundland.
The $14 billion Bay du Nord development, which will be Canada’s first deepwater offshore oil and gas project and has oil reserves estimated at 430 million barrels, could unlock a new frontier for Canada’s oil and gas sector.
“I am hopeful that this will stimulate activity in the Flemish Pass and we might see more operators taken an interest in looking at drilling,” said Strong of the positivity the return of the Hercules could signal.
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