Aberdeen’s Dolphin Drilling has cancelled a contract with General Hydrocarbons Limited as it expects to lose out on $42.6 million.
The drilling firm signed a contract with General Hydrocarbons Limited (GHL) in March.
This deal was to cover past due payment amounts and remaining work under the drilling contract with GHL.
Dolphin Drilling writes that its “expected credit loss against sums due from one customer” amounts to USD 42.6 million.”
At the time of its last update on the matter, Dolphin Drilling had received instalments, however, a recent stock market update shows that payments have not been made by GHL in accordance with the contract.
Dolphin Drilling says it “intends to pursue the recovery of sums remaining due by GHL.”
At the time the firm said that upon conclusion of the agreement its Blackford Dolphin rig would depart Nigeria for India.
After explaining that “terms for payment under the agreement with GHL have not been met,” Dolphin Drilling announced that the Blackford Dolphin is setting off for India.
Bjørnar Iversen, chief executive of Dolphin Drilling said in the March update: “It was important for us to find a win / win solution with GHL on the current contract, payment and work scope, and to create a predictable exit for the rig Blackford Dolphin from Nigeria while also ensuring on-time delivery of the unit for our next client in India.”
Last Month Dolphin Drilling was awarded a $154 million drilling contract from Oil India for the Blackford Dolphin semisubmersible drilling rig.
Under the contract, Dolphin Drilling will carry out work with Oil India for “over 14” as it carries out a three wells drilling campaign. The deal also outlines an optional period of seven months.
The work is set to support Oil India’s exploration and development activities. At the time of the deal operations were planned to commence in the second half of 2024.