Dolphin Drilling offloads ageing rig for $25m, eyes Indian market tie-up
Norwegian contractor sells 50-year-old semisubmersible to Dubai’s SPM Energy Shipping, securing future management fees.
Norwegian offshore drilling contractor Dolphin Drilling has agreed to sell its ageing Blackford Dolphin semisubmersible rig to Dubai-based SPM SPM Energy Shipping for up to $25m, while exploring a partnership to manage drilling assets in India and other markets.
The transaction, expected to close around November 5, will see Dolphin receive $10m upon delivery of the rig, with the remaining $15m payable once SPM secures its first payment under a future drilling contract.
The sale allows Dolphin to offload the financial burden of an upcoming class renewal survey for Blackford Dolphin, a process that would have required significant capital expenditure. Ronny Bjørnådal, Dolphin’s chairman, said the deal would “significantly reduce operating costs and eliminate capital expenditure associated with the upcoming class renewal survey for Blackford Dolphin, while allowing the company to retain exposure to future drilling opportunities.”
Norwegian Cruise Line
«The transaction would significantly reduce operating costs and eliminate capital expenditure associated with the upcoming class renewal survey for Blackford Dolphin, while allowing the company to retain exposure to future drilling opportunities.»
Ronny Bjørnådal·Chairman of Dolphin Drilling
The agreement also includes a memorandum of understanding (MoU) for a potential rig management partnership. Under the proposed arrangement, SPM would market the rigs, including Blackford Dolphin and another semisubmersible, in India and other agreed regions, covering capital expenditure, operating costs, and guarantees for future contracts. Dolphin, in turn, would provide technical and operational management services, generating fee income without retaining ownership of the assets.
What’s next for Blackford Dolphin and Dolphin Drilling?
Blackford Dolphin, a 5th-generation semisubmersible capable of operating in water depths up to 1,829 metres, has been under contract with Oil India since March 2024. The three-well exploration campaign in the Andaman Sea, initially set to conclude earlier, was extended multiple times, with the latest deadline set for October 15, 2026.
For Dolphin Drilling, the sale is part of a broader strategy to streamline its fleet. The company’s remaining owned assets include the semisubmersibles Paul B. Paul B. Loyd Jr.. and Borgland Dolphin, both of which secured multi-year contracts earlier this year.
The management arrangement remains subject to definitive agreements, but if finalised, it could mark a shift in how ageing offshore assets are monetised in a challenging market.
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