Oslo-listed offshore drilling firm Dolphin Drilling has concluded final transfer of ownership from Transocean and started operating two semi-submersible drilling rigs - Paul B. Loyd, Jr. and Transocean Leader.
The agreement to acquire the rigs was made in June 2023, for net $50 million, whereof $6.1 million was paid in the third quarter 2023 (gross $64.5 million less net cash flow earned since June 2023).
The Paul B. Loyd, Jr. rig has a firm revenue backlog of $280 million with UK oil and gas company Harbour Energy.
Following the closing of the rig acquisition, the Paul B. Loyd, Jr. will be under contract with Harbour Energy in the UK with the firm period until February 2028, with another 5 x 1 year option periods thereafter.
"To commence operations is an important milestone 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 operations for our clients,” said Bjørnar Iversen, CEO of Dolphin Drilling.
In addition, Dolphin Drilling has entered into a 5+5 year master service agreement (MSA) with Harbour Energy.
“The MSA with Harbour Energy allows Dolphin Drilling to work in close strategic cooperation with one of the largest North Sea E&P companies. The UK drilling market is showing positive signs and the Dolphin Drilling fleet offers flexibility to take on all floating rig requirements in the years to come including exploration drilling, production drilling and plug and abandonment work across the UK sector," added Iversen.