Dolphin Drilling to Sell Semi-Submersible Drilling Rig for Up to US$25 Million

en.Wedoany.com Reported - On October 26, drilling contractor Dolphin Drilling signed a formal sale and purchase agreement with Dubai-based SPM Energy Shipping FZCO to sell the "Blackford Dolphin" semi-submersible drilling rig for up to US$25 million. The transaction is structured as a US$10 million delivery payment plus a US$15 million contingent payment, with closing expected in Singapore on or around November 5. On the same day, the two parties signed a memorandum of understanding on drilling rig management cooperation covering the rig being sold and another semi-submersible drilling rig.

Under the sale agreement, the buyer SPM or a designated transferee guaranteed by SPM will pay US$10 million upon delivery of the drilling rig. The remaining US$15 million is payable after SPM receives the first payment under a potential future drilling contract for the rig. Accordingly, the US$25 million represents the maximum transaction consideration including the contingent payment and is not entirely received at closing. Following completion of the transaction, Dolphin Drilling expects to reduce the rig's operating costs and avoid the capital expenditure required for the class renewal survey originally scheduled for April 2027.

The memorandum of understanding signed alongside the asset sale sets out a proposed cooperation arrangement under which SPM will be responsible for market development and Dolphin Drilling will provide drilling rig operation and technical management services. SPM plans to undertake drilling operations in India and other markets agreed by both parties, and as rig owner will bear the related capital expenditure, operating expenses and contract guarantee obligations. Dolphin Drilling plans to charge service fees under subsequent management contracts. The scope of cooperation may also be extended to other drilling rigs separately agreed by both parties to be included, with specific management arrangements subject to the signing of definitive agreements. SPM's market development advisor is Valiant Oil and Gas.

The "Blackford Dolphin" was built in 1974 and underwent a major upgrade in 2008. It features an enhanced Aker design and an eight-point mooring system, with a maximum operating water depth of approximately 1,829 meters and a maximum drilling depth of approximately 9,144 meters. The rig previously performed drilling operations for Oil India in the Andaman Sea, with the most recent contract extension running until October 15, 2026. The asset being sold by Dolphin Drilling has already completed this round of contract extension arrangements, and the potential future drilling contract will directly determine the payment of the US$15 million contingent amount in the transaction.

Following completion of the transaction, Dolphin Drilling expects to retain two owned semi-submersible drilling rigs, the "Paul B. Loyd Jr." and the "Borgland Dolphin," and to reach a managed fleet of four semi-submersible drilling rigs in total. The company's firm contract backlog at the end of the second quarter of 2026 was US$556 million, plus US$446 million in contract options, both figures corresponding to multi-year drilling contracts already secured for its retained rigs.