Offshore drilling giant Dolphin Drilling has officially terminated its rig contract with General Hydrocarbons Limited (GHL), a Lagos-based oil and gas company, over non-compliance with an agreed payment plan.
The dispute revolves around the Blackford Dolphin, a semi-submersible drilling rig that began operations in Nigeria in March 2023 under a 12-month contract signed in October 2022. However, by November 2023, GHL had accumulated outstanding payments totaling $17.3 million, despite making partial payments and proposing a structured plan to clear the debt.
While Dolphin Drilling received two installments in 2024, the Norwegian drilling firm ultimately decided to terminate the contract after GHL failed to meet the agreed payment terms. As a result, Dolphin Drilling is now preparing the Blackford Dolphin for redeployment to India, where it is set to begin a new drilling campaign with Oil India Limited.
Dolphin Drilling has also recorded an expected credit loss of $42.6 million due to the unpaid balance and intends to take legal steps to recover the remaining debt from GHL.
Blackford Dolphin: A Premium Drilling Asset
The Blackford Dolphin is a 1974-built enhanced Aker H-3 design semi-submersible rig with a 120-person capacity. Dolphin Drilling, which previously sold its Bideford Dolphin, currently owns a fleet of four high-spec fourth and fifth-generation rigs, including:
•Borgland Dolphin
•Blackford Dolphin
•Paul B. Loyd, Jr.
•Dolphin Leader
This development raises concerns about financial stability within Nigeria’s upstream sector, particularly regarding indigenous players’ ability to meet contractual obligations with international service providers.
