Lagos-based General Hydrocarbons Limited (GHL) has awarded a $96 million contract to Dolphin Drilling (DD) for a 12-month offshore drilling operation in Nigeria. The contract involves the mobilization of the Blackford Dolphin rig, with operations scheduled to commence in Q4 2022.
Dolphin Drilling made the announcement in a statement on October 5, 2022, confirming the contract’s finalization after receiving a Letter of Award (LoA) earlier in the year. The initial LoA outlined a $232,500 per day drilling rate, plus a $12 million mobilization fee for the Blackford Dolphin rig, which will be deployed for the GHL project.
A Strategic Move in Nigeria’s Offshore Sector
Speaking on the contract award, Bjornar Iversen, CEO of Dolphin Drilling, highlighted the importance of the deal in reinforcing the company’s position in offshore drilling:
“We are proud to announce the final award of the Blackford Dolphin contract, proving our position in the niche moored semisubmersible market.”
He added:
“Dolphin Drilling has attractive assets, a strong team, and a solid platform to leverage on the favorable market development with improved rates. The contract for Blackford Dolphin underlines the potential of the company and its assets, and we believe Dolphin Drilling will capitalize on the continued expected tight rig market for the rest of the fleet.”
GHL’s Expansion in Nigeria’s Oil & Gas Sector
Earlier in 2022, Hawilti, an African energy intelligence platform, reported that GHL had engaged Century Group, a technical energy solutions company, to develop and produce its hydrocarbon assets.
Nigeria’s oil and gas sector remains a key driver of economic growth, with upstream companies thriving due to the country’s heavy reliance on petroleum resources. Nairametrics previously reported that Nigeria’s oil industry profitability depends on a combination of pricing and production capacity, making deals like the GHL-Dolphin Drilling partnership significant for the sector’s continued expansion.
Key Facts About GHL and OML 120
•General Hydrocarbons Limited (GHL) is an oil and gas services company that began operations in Nigeria in 2009.
•GHL is the lead stakeholder in OML 120, an oil block in Nigeria’s southwestern offshore region.
•OML 120 is located 70 kilometers offshore, with Oyo field as its key asset.
•The Oyo oil field was initially discovered by Statoil in 1996 but was deemed uncommercial at the time.
•Italian oil major Eni later developed the field, leading to first production in December 2009, using two subsea production wells tied to a leased FPSO (Floating Production, Storage, and Offloading) vessel.
•GHL is currently redeveloping the Oyo field as part of its ongoing expansion plans.
Dolphin Drilling’s Expertise in Deepwater Drilling
Dolphin Drilling is a leading offshore drilling contractor, known for deepwater drilling in harsh environments. The company operates a fleet of three fourth and fifth-generation drilling rigs, including:
•Borgland Dolphin
•Blackford Dolphin (deployed for the GHL contract)
•Bideford Dolphin
With this $96 million contract, Dolphin Drilling strengthens its foothold in Nigeria’s offshore drilling sector, while GHL advances its strategy to become a major player in the country’s oil and gas industry.
