Dolphin Drilling has signed an agreement to sell the Blackford Dolphin rig to SPM Energy Shipping for up to $25 million. At the same time, the parties have entered into a letter of intent that Dolphin Drilling should operate the rig further, along with at least one other half-submersible rig.
The sale is expected to be completed around November 5.
Dolphin Drilling has entered into a binding buy and sale agreement to sell the semi-submersible rig Blackford Dolphin to SPM Energy Shipping FZCO.
Total remuneration is $25 million. Of this, ten million dollars are paid when delivering the rig, while the remaining 15 million are first paid when the SPM receives the first payment during any future drilling contract. The sale is expected to be completed around November 5 in Singapore.
To operate the rigs further
At the same time, the parties have signed a letter of intent on the operation of future drilling contracts for Blackford Dolphin and a further semi-submersible rig, and any other rigs the parties agree to.
The rigs are to be marketed by SPM in India and other areas the parties agree. As the owner, SPM will cover capital costs, operating expenses and guarantees related to future drilling contracts.
The agreement assumes that final operating agreements are entered into, and is conditional on the usual implementing conditions.
Cuts costs and class renewal
“Dinel Drilling will, through the sale and the planned operating agreements, significantly reduce the risk in the company, and at the same time significantly reduce operating costs and eliminate the investments associated with the class renewal of the Blackford Dolphin. The transactions allow for future upside through the operation of Blackford Dolphin and one or more a further semi-submersible drilling rigs, providing future operating fees and the ability to grow our platform,” says Ronny Bjørnådal, Chairman of Dolphin Drilling.
The company said at the end of the second quarter of 2026 it had $55.1 million in cash and a fixed contract backlog of $556 million, with an additional $446 million in options. The backlog stems from the perennial contracts secured for Paul B. Loyd Jr and Borgland Dolphin.
Tight rig market
Dolphin Drilling describes the market for semi-submersible rigs that still tight. The company points out that years of limited new construction activity, combined with phase-out and scrapping of older units, have reduced access to anchored removable rigs significantly, without new buildings entering the fleet.
At the same time, demand is kept up by renewed attention around energy security and increased investment in offshore developments, including in areas with quiet waters such as India, Southeast Asia, Mexico and West Africa.
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