Nigeria's GHL Proposes Non-Binding Settlement of $105 Million Arbitration Award

en.Wedoany.com Reported - On August 28, Dolphin Drilling stated that General Hydrocarbons Limited (GHL) has proposed a non-binding, indicative settlement regarding the arbitration award between the parties. The proposal includes the potential redeployment of the Blackford Dolphin semi-submersible drilling rig to Nigeria, along with a cash payment of a portion of the arbitration award amount. The arbitration award involves approximately $105 million.

Dolphin Drilling stated that GHL's current proposal does not yet meet the company's requirements, but the company is prepared to engage with GHL on terms that could yield a commercially acceptable outcome. No agreement has been reached between the parties, and whether discussions will commence, whether an agreement can be reached, as well as the structure, consideration, and timing of any agreement, remain undetermined. Dolphin Drilling will continue to pursue the recovery of its unsecured claim.

The Blackford Dolphin commenced a 12-month drilling contract with GHL in Nigeria in March 2023. In 2024, Dolphin Drilling terminated the contract and initiated arbitration proceedings due to GHL's failure to make payments as agreed; in December of that year, the company obtained an arbitration award of approximately $105 million, with interest accruing from the date of the award. On July 14, 2025, the Federal High Court of Nigeria in Lagos approved Dolphin Drilling's enforcement of the arbitration award.

In November 2025, Dolphin Drilling stated that Nigerian asset management company AMCON had appointed receivers to take control of GHL and required GHL's creditors to submit claims; Dolphin Drilling subsequently continued to pursue the recovery of its unsecured claim of approximately $105 million.

The Blackford Dolphin is currently executing a drilling assignment for Oil India Limited in the eastern waters of India. On August 20, Dolphin Drilling extended this contract to October 15, 2026, to complete drilling, testing, and plug and abandonment operations, with the contract continuing under its original terms and scope of work.