General Hydrocarbons Limited (GHL) has approached Dolphin Drilling with a non-binding proposal combining a potential deployment of the Blackford Dolphin rig in Nigeria with a cash settlement of a portion of an approximately $105 million arbitration award.
The proposal represents a potential new route towards resolving a dispute stemming from Dolphin's termination of the Blackford Dolphin contract with GHL in April 2024 over payment issues.
Dolphin considers GHL's decision to initiate contact a positive development, although the proposal in its current form does not meet its requirements. The offshore drilling contractor is prepared to engage constructively with GHL on a proposal capable of delivering a commercially sound outcome.
Dolphin cautioned that there is no assurance discussions will begin or, if they do, lead to an agreement, with the timing, structure, consideration and outcome of any potential settlement remaining uncertain. It will continue efforts to collect its unsecured claim irrespective of any discussions.
The Federal High Court of Lagos in July 2025 granted Dolphin leave to enforce the arbitration award against GHL, with approximately $105 million due in connection with the terminated drilling contract.
In November 2025, Nigeria's Asset Management Corporation of Nigeria appointed a receiver/manager to take control of GHL, after which creditors were instructed to file their claims.
The proposed Nigerian deployment comes as the Blackford Dolphin continues working for Oil India Limited. Dolphin announced on August 20 that the rig's contract had been extended until October 15, 2026, to complete drilling, testing and abandonment work at locations east of India under the same terms and scope as the existing contract.
The deepwater-capable semi-submersible Blackford Dolphin rig was built in 1974 and upgraded in 2008. It can operate in water depths of up to 6,000 feet and drill to depths of up to 30,000 feet.