Oslo-based offshore drilling contractor Dolphin Drilling announced Thursday 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 company said it is contemplating a private placement of approx. $60 million to finance the transaction.
“We are excited about this acquisition, which not only expands our fleet but also enhances our earning visibility," said 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. The addition of these efficient rigs allows us to further consolidate the midwater rig segment in a tightening market, characterized by historically low supply and surging dayrates across offshore basins."
Currently, the Paul B. Loyd Jr. is under contract with Harbour Energy in the U.K. with the firm period slated to last until September 2024, and the Transocean Leader is stacked in the U.K.
The agreement is subject to certain customary closing conditions which must be satisfied before the Transaction can be completed.
The agreement with Transocean is conditioned upon approval to novate Paul B. Loyd Jr. existing UK HSE safety case to Dolphin Drilling and customary closing conditions and is expected to be closed during the second half of 2023.
In a separate announcement, Dolphin Drilling said it received a commitment subject to certain conditions from Harbour Energy to extend the firm contract period for Paul B. Loyd Jr for an additional three years until September 2027. The total existing firm contract plus the new extended commitment represents an estimated contracted revenue backlog of $279 million.
Harbour Energy also maintains a further five one-year options for future projects post the extension period.
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