Dolphin Drilling and Total E&P UK entered into an early termination agreement that will move the Borgsten Dolphin support vessel to the cold stack list.
Dolphin Drilling, a subsidiary of Fred. Olsen Energy (FOE), said the tender for support vessel Borgsten Dolphin will result in a cessation of offshore services on 1 October 2016, and the unit will mobilize inshore for expected cold stacking thereafter.
Total will pay an early termination fee of approximately US$22.1 million in addition to payment for services provided until 1 October 2016.
According to the latest fleet report from FOE, the contract was originally set to end in early 2018.
In June 2015, Dolphin and Total entered into a contract amendment for the vessel that covered a revised contract period beginning on 1 October 2015, continuing to 31 January 2018, subject to certain early termination rights from end 2016. The estimated contract value for the revised period from 1 October 2015 to 31 January 2018 was approximately $141 million.
In 2012, the Borgsten Dolphin was upgraded and converted from a drilling rig to a tender support vessel.
Image of the Borgsten Dolphin, from Dolphin Drilling.
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