| Work Detail |
Semisub rig owner Dolphin Drilling has reached an agreement with UK-based oil and gas operator EnQuest for the early termination of a contract awarded to the Borgland Dolphin rig.
The deal, awarded in late November last year, was for a 137-day drilling programme in the UK North Sea. The contract included a contribution toward the rig’s reactivation costs. EnQuest also had an option to extend the work scope under a strategic alliance over five years.
The contract was also supposed to enable the positioning of the rig for work in the North Sea, where Dolphin could find more work on production and development well drilling and P&A campaigns over the next few years.
However, this was not to be and in exchange for the cancellation of the contract, EnQuest will pay the driller a fee of $20.75m before the end of November.
Borgland Dolphin is currently at Las Palmas, Gran Canaria. The earlier planned class renewal will be paused while future contract opportunities continue to be assessed. According to the company, the rig is currently tendered toward several campaigns with attractive economics. However, no further commitments are planned to be made before the signing of a firm agreement.
“While it was disappointing to receive the cancellation of the contract, we continue to focus our efforts on securing long-term backlog for the Borgland. The timing of the termination allows us to pause the SPS, improve liquidity, and carefully plan the next steps,” said Bjørnar Iversen, CEO of Dolphin Drilling. |
