Oslo-listed offshore drilling firm Dolphin Drilling has reached agreement with General Hydrocarbons Limited (GHL) regarding past due payment amounts, clearing its Blackford Dolphin semi-submersible rig for the remaining work under the drilling contract.
In Dolphin Drilling's financial report for the fourth quarter of 2023, the company revealed that GHL paid $5.5 million in three instalments since release of the previous quarter report ($0.5 million prior to the end of 2023 and the remainder in 2024).
Dolphin Drilling said then that GHL remained significantly overdue in its payment obligations, and as of end of the fourth quarter of 2023, outstanding amounts net $37.8 million (after netting, advances, withholding tax and VAT).
As at reporting date of February 26, 2024, the position has increased to $46.0 million, including billings to end January less payments received in January and February.
Dolphin Drilling has in 2024 received two installments, as announced 9 January 2024 and 2 February 2024 respectively.
The newly reached agreement is intended to enable Dolphin Drilling to receive payment of all sums due under the contract, and to enable GHL to continue to utilize the Blackford Dolphin for an agreed period of time.
Following the agreement, the company has received a further payment and Blackford will continue operations for GHL, the Olso-listed firm confirmed, noting that the next payment in the plan is due by late April 2024.
“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”, said Bjørnar Iversen, CEO of Dolphin Drilling.
Upon conclusion of the agreement the Blackford Dolphin will depart Nigeria for India, Dolphin Drilling informed.