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Dolphin Drilling, an offshore drilling contractor, has reached an agreement with General Hydrocarbons Limited (GHL), a Nigerian oil and gas company based in Lagos, to increase oil production.
The contract aims to address outstanding payment issues and complete the remaining work under the drilling contract awarded to one of its semi-submersible rigs off the coast of Nigeria.
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After initially announcing a Letter of Award (LoA) for the Blackford Dolphin semi-sub rig in September 2022, Dolphin Drilling formally confirmed the 12-month contract with General Hydrocarbons Limited in October 2022 for drilling operations in Nigeria. The drilling assignment commenced in March 2023.
In November 2023, Dolphin Drilling disclosed that GHL’s overdue payments amounted to a net $175.3 million, along with a partial payment from General Hydrocarbons Limited and a proposed payment plan for the remaining outstanding amounts. In 2024, Dolphin Drilling received two installments of payment.
The agreement between Dolphin Drilling and GHL is intended to facilitate the receipt of all outstanding sums under the contract and allow the Lagos-based company to continue utilizing the Blackford Dolphin rig for an agreed period. Following the agreement, Dolphin Drilling received an additional payment.
The rig will continue operations for GHL, with the next payment under the plan due by late April 2024. Upon the conclusion of the agreement, the Blackford Dolphin semi-sub will depart Nigeria and proceed to India to commence a new drilling campaign with Oil India Limited. The Blackford Dolphin, built in 1974, is a semi-submersible drilling rig of an enhanced Aker H-3 design capable of accommodating 120 people.
Bjørnar Iversen, CEO of Dolphin Drilling, emphasized the importance of finding a mutually beneficial solution with GHL regarding the current contract, payment terms, and work scope. He also highlighted the need for a smooth transition for the Blackford Dolphin rig from Nigeria to India to ensure timely delivery for their next client.
After selling its Bideford Dolphin rig for scrap to streamline its fleet and improve operational efficiency, Dolphin Drilling currently owns a fleet of four high-standard fourth and fifth-generation enhanced Aker H3 and H4 units: Borgland Dolphin, Blackford Dolphin, Paul B. Loyd, Jr., and Dolphin Leader.
