North Sea drilling rig operator Dolphin Drilling (OSLO:DDRIL) has secured a “positive outcome” in its arbitration case against General Hydrocarbons Ltd in Nigeria.
The Norwegian drilling firm said it has been awarded $100 million (£80m) and will “immediately commence collection efforts”.
The case stems from a 2023 contract offshore Nigeria for the company’s Blackford Dolphin rig.
The Blackford Dolphin semi-submersible went to work for Lagos-based General Hydrocarbons in March last 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 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.
At the time, the company said General Hydrocarbons had reached a receivable balance, owed to Dolphin, of $41 million. This included a $6mn sum payable by Peak.
Dolphin said it had taken the decision to terminate the Peak contract. Following this decision, the rig should now be available at the end of the first quarter of 2024.
In January, Dolphin Drilling said it received $2 million, bringing the total
collected since the date of Q3 2023 reporting to $2.5 million.
The drilling company is facing separate legal action over its decision to terminate the Peak Deal.
On Christmas Eve last year, Dolphin said 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.
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