Offshore drilling contractor Dolphin Drilling has struck a deal with Lagos-based General Hydrocarbons Limited (GHL), a Nigerian oil and gas player, to boost oil production exercise.
The contract is pursuant of past due payment amounts and remaining work under the drilling contract awarded to one of its semi-submersible rigs off the coast of Nigeria.
After disclosing a letter of award a (LoA) for the Blackford Dolphin semi-sub rig in September 2022, Dolphin Drilling confirmed the formal 12- month contract award with General Hydrocarbons Limited in October 2022 for drilling operations in Nigeria.
The rig kicked off the drilling assignment in March 2023.
Once November 2023 rolled in, the offshore drilling contractor revealed that GHL’s past due payments represents a net $175.3 million along with a part payment from General Hydrocarbons Limited and a proposed payment plan related to the remaining past due payments. In 2024, the drilling player received two installments.
According to Dolphin Drilling, its agreement with GHL is intended to enable it to receive payment of all sums due under the contract, and to enable the Lagos-based company to continue to utilize the Blackford Dolphin rig for an agreed period. Following the agreement, the offshore drilling player received a further payment.
The rig will continue operations for GHL and the next payment based on the plan is due by late April 2024. Upon conclusion of the agreement, the Blackford Dolphin semi-sub will depart Nigeria and go to India to embark on its new drilling campaign with Oil India Limited. The 1974-built Blackford Dolphin is a semi-submersible drilling rig of an enhanced Aker H-3 design and can accommodate 120 people.
Bjørnar Iversen, CEO of Dolphin Drilling, commented: “It was important for us to find a win/win solution with GHL on the current contract, payment and work scope, and to create a predictable exit for the rig Blackford Dolphin from Nigeria while also ensuring on-time delivery of the unit for our next client in India.”
After selling its Bideford Dolphin rig for scrap to optimize its fleet and enhance operational efficiency, Dolphin Drilling owns a fleet of four high technical standard fourth and fifth-generation enhanced Aker H3 and H4 units: Borgland Dolphin, Blackford Dolphin, Paul B.Loyd, Jr., and Dolphin Leader.
SOURCE: Oriental News Nigeria