Dolphin Drilling has entered into a definitive sale and purchase agreement (SPA) for the sale of the 1974-built Blackford Dolphin semi-submersible rig with SPM for a total consideration of $25 million, comprising $10 million, payable upon delivery of the rig and $15 million, payable when SPM receives the first payment under a potential future drilling contract.
The sale is expected to close on or about November 5, 2026, in Singapore, immediately and materially reducing the firm’s operating cost base, eliminating the class renewal survey capital expenditures related to this rig and significantly strengthening the company’s financial position.
The duo has also entered into a memorandum of understanding (MoU) for the management of future drilling contracts for this rig and one additional semi-submersible, as well as any other rigs or units that the two companies may agree upon.
The company explains that these management arrangements contemplate entry into management agreements and other deals, which remain subject to definitive documentation and customary closing conditions.
The contemplated management arrangements combine Dolphin Drilling’s established operating platform, technical expertise and long track record with the strong commercial presence of the participating companies in India and the surrounding regions.
The rigs will be marketed by SPM in India and other areas agreed upon between the two players, with capital costs, operational expenses and guarantees related to future drilling contracts to be covered by SPM as owners of the rigs.
Ronny Bjørnådal, Chairman of the Board of Directors of Dolphin Drilling, commented: “Dolphin Drilling will through the sale and contemplated management arrangements materially de-risk the company and at the same time, significantly reduce operating costs as well as eliminate capital expenditures associated with the class renewal survey for the Blackford Dolphin.
“The transactions provide for potential future upside through management of Blackford Dolphin and one or more additional semi-submersible drilling rig resulting in future management fees and ability to grow our platform.”
