Dolphin Drilling has announced the commencement of operations and the final transfer of ownership for the two acquired rigs from Transocean. The semi-submersible Paul B. Loyd, Jr. has a firm revenue backlog of USD 280 million, and the finalization of this acquisition will position Dolphin Drilling as a leading offshore drilling contractor in the UK sector.
“To commence operations is an important milestone for Dolphin Drilling as we showcase our operational platform’s capacity to incorporate additional assets and generate immediate, robust cash flows for our shareholders. We see strong interest for our offshore floater rigs in the UK sector, providing safe and efficient operations for our clients,” says Bjørnar Iversen, CEO of Dolphin Drilling.
Reference is made to the announcement 22 June 2023 regarding the acquisition of two semi-submersible rigs, the Paul B. Loyd, Jr. and the Transocean Leader. The rigs were acquired for net USD 50 million, whereof USD 6.1 million was paid in Q3 2023 (gross USD 64.5 million less net cash flow earned since June 2023). The estimated EBITDA from the firm backlog cover for more than three times the net acquisition price.
The Paul B. Loyd, Jr. has a firm revenue backlog of USD 280 million with Harbour Energy Ltd. (Harbour Energy), the largest oil and gas producer in the UK. Following the closing of the rig acquisition the Paul B. Loyd, Jr. will be under contract with Harbour Energy in the UK with the firm period until February 2028, with another 5 x 1 year option periods thereafter. In addition, the company has entered into a 5+5 year master service agreement (MSA) with Harbour Energy
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“The MSA with Harbour Energy allows Dolphin Drilling to work in close strategic cooperation with one of the largest North Sea E&P companies. The UK drilling market is showing positive signs and the Dolphin Drilling fleet offers flexibility to take on all floating rig requirements in the years to come including exploration drilling, production drilling and plug and abandonment work across the UK sector. We hold a rich history as a drilling pioneer with a long track-record in the UK, where we now aim to build the position as the leading drilling contractor,” Iversen concludes.
