An Aberdeen oil rig firm has received notice of legal action over a cancelled contract and a dispute over payments.
Dolphin Drilling, headquartered in the north-east, has received notice from Peak Petroleum of Nigeria after the rig firm terminated a deal for the Blackford Dolphin.
Earlier this month, Dolphin Drilling (OSLO: DDRIL) cut off the Peak Petroleum deal after “extensive efforts” to receive outstanding funds failed.
The Oslo-listed company said in November it had an outstanding $6m directly payable by Peak Petroleum as part of a wider $41m from General Hydrocarbons Ltd, after netting advances, withholding tax and VAT.
Dolphin said on December 24 that it had received the legal action notice.
“Dolphin Drilling disputes this position and together with its legal advisors
will take the appropriate measures,” the company said in a statement.
“Further updates to the market will be provided as and when available.”
Peak Petroleum has been contacted for comment on the Dolphin Drilling legal action.
It owns OML 122 off Nigeria in the Gulf of Guinea, which is east of Shell’s giant Bonga field and southwest of the EA fields.
The Blackford Dolphin semi-submersible went to work for General Hydrocarbons in March this year. At the time, Dolphin said this carried a $260,000 dayrate.
The General Hydrocarbons contract was to run for 12 months. After completing this work, the Blackford Dolphin would move to work for Peak. This had a minimum term of 120 days and a maximum of 485 days.
Dolphin Drilling said the minimum term contract for Peak had an effective dayrate of $325,000, including mobilisation. During the third quarter, Dolphin reported operating costs for the Blackford to be $106,000 per day, down from $116,000 in the second quarter.
The Blackford Dolphin is expected to be available after Q1 2024, though it is already rumoured to be in talks on a new deal elsewhere.
Dolphin is meanwhile expected to bring the Transocean Leader and Paul B. Loyd Jr semisubmersibles from Transocean into its fleet in the new year.
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