Dolphin Drilling Lines Up $105M Payment for Rig Deal Termination in Nigeria

Blackford Dolphin semi-submersible rig (Credit: Dolphin Drilling)

The Federal High Court of Lagos in Nigeria has ordered General Hydrocarbons Limited (GHL) to pay $105 million to Oslo-listed offshore drilling firm Dolphin Drilling for the termination of deal for the semi-submersible rig that was hired for operations off Nigeria.

On July 14, Nigerian court made an order granting Dolphin Drilling leave to enforce the arbitration award. 

The total sum due under the arbitration award is approximately $105 million, and Dolphin Drilling said it will continue to pursue collection efforts.

The order was granted against GHL for Dolphin Drilling’s semi-submersible rig, hired by the company for drilling operations in Nigeria.

In April 2024, Dolphin Drilling terminated the contract with GHL for the rig, citing issues with the agreed payments.

The Blackford Dolphin semi-submersible drilling rig was constructed in 1974 and underwent significant upgrades in 2008. The rig has a maximum operating water depth of 6,000 feet (1829 meters) and a maximum drilling depth of 30,000 feet (9,144 meters).

Since the cancellation of the contract with GHL, the rig has been hired by Oil India, under $154 million agreement secured in March 2023. The rig arrived in India in November and started operations for Oil India.