Oslo-listed offshore drilling firm Dolphin Drilling on Friday announced the Safety Case acceptance from the UK Offshore Major Accident Regulator (OMAR) for the semi-submersible drilling rig Paul B. Loyd, Jr., being acquired from Transocean.
As previously reported, Dolphin Drilling said in June it had reached a deal to acquire two semi-submersible drilling rigs, the Paul B. Loyd Jr. and the Transocean Leader from Transocean, for a total of $61.5 million (plus an additional $3 million).
The agreement was conditioned upon acceptance of a material change of the 1990-built Paul B. Loyd, Jr. rig UK HSE safety case to Dolphin Drilling as duty holder, which was expected by December 31, 2023, and now obtained ahead of schedule.
"We are excited about the rapid UK Competent Authority response to our material change submission following an efficient application process in close cooperation with Transocean for the Paul B. Loyd, Jr., where Dolphin Drilling systems are accepted in accordance with Safety Case regulations. We hold a rich history as a drilling pioneer in the North Sea with a long track record in the UK, where we now aim to build the position as the leading drilling contractor," says Bjørnar Iversen, CEO of Dolphin Drilling.
“This transaction signifies an important stride for Dolphin Drilling as we showcase our operational platform's capacity to incorporate additional assets and generate immediate, robust cash flows for our shareholders. We see strong interest for our offshore floater rigs in the UK sector, providing safe and efficient drilling operations for our clients,"Iversen concludes.
Following the closing of the rig acquisition, the Paul B. Loyd, Jr. will be under contract with Harbour Energy in the UK at a $175,000 day rate, with the firm period expected to last until September 2027, with another 5 x 1 year option periods thereafter.
Following the completion of the transaction, Dolphin Drilling's fleet will consist of five moored semi-submersible drilling rigs: Blackford Dolphin, Borgland Dolphin, Bideford Dolphin, and Paul B. Loyd Jr., Transocean Leader. The Transocean Leader will be renamed the Dolphin Leader.
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