Norwegian-listed rig operator Dolphin Drilling has agreed to sell the semi-submersible drilling rig Blackford Dolphin to Dubai-based SPM Energy Shipping for up to US$25 million under a sale and purchase agreement dated October 26.
The consideration comprises a US$10 million payment on delivery of the rig and a contingent US$15 million payment. The second payment will become due once SPM receives its first payment from a drilling contract that may be awarded in the future for the unit.
Closing is expected on or about November 5 in Singapore.
Dolphin Drilling said the sale would materially reduce its operating cost base and reduce interest-bearing debt. The company also said the sale would eliminate the capital expenditure associated with the rig's class renewal survey, which is due in April 2027.
The two parties have also entered into a memorandum of understanding setting out arrangements for future drilling contracts for Blackford Dolphin and one additional semi-submersible rig.
Under the proposed arrangements, SPM would market the rigs in India and other agreed areas. As rig owner, SPM would also cover capital costs, operating expenses and guarantees, while Dolphin Drilling would earn management fees.
The agreements can only proceed once definitive documents are in place and customary closing conditions are met.
Delaware-based Valiant Oil and Gas will act as SPM's marketing consultant.
Dolphin Drilling chairman Ronny Bjørnådal said the arrangements give the company, "the flexibility to capture the prospective upside of a tightening rig market."
Following the transactions, Dolphin Drilling will own two semi-submersible rigs and manage four. Multi-year contracts for Paul B. Loyd Jr. and Borgland Dolphin underpin its firm revenue backlog of US$556 million, plus US$446 million in options.
Blackford Dolphin entered service in 1974 and was upgraded in 2008. The rig is built to an enhanced Aker design, has an eight-point mooring system, and can operate in water depths of up to 1,829 metres.
It began working for Oil India in November 2024 after leaving Nigeria following a payment dispute, and the contract was later extended to October 15.
