Aberdeen-headquartered Dolphin Drilling has shared it aims to sell and scrap its 49-year-old Bideford Dolphin drilling rig.
The Bideford Dolphin was built at Aker Verdal in 1975 and modified in 1998 and has been operated by Dolphin Drilling (OSLO: DDRIL).
The firm says the decision to scrap the rig is in line with its “efforts to optimise its fleet and enhance operational efficiency.”
Dolphin Drilling shared its plans for the Bideford Dolphin in a Euronext update this morning, where it wrote: “The rig will be sold and scrapped in a responsible manner in accordance with applicable international standards.”
Dolphin Drilling owns a fleet of four 4th and 5th generation enhanced Aker H3 and H4 units. These include the Borgland Dolphin, Blackford Dolphin, Paul B. Loyd, Jr. and Dolphin Leader.
Dolphin Drilling’s Supreme Court battle
Currently, Dolphin Drilling is locked in a bid for a Supreme Court challenge, and it has recently called for its fellow British rig owners to back it.
Dolphin Drilling has vowed to take the case to the Supreme Court following a a Court of Appeal hearing loss.
The firm has been locked in a legal battle with HMRC for years and it says the recent loss will have implications for the operation of hundreds of rigs and vessels in the UK sector.
The firm sent out a memo to members of the British Rig Owners’ Association and the UK Chamber of Shipping asking companies to back the move for a Supreme Court hearing.
The Court of appeal hearing in December sets a new precedent with wide implications on what deduction claims can be made in the sector under corporation tax law.
This case stems from a long-running battle between HMRC and Dolphin starting in 2014 after its Borgsten Dolphin rig was hired by TotalEnegies in the North Sea.
Dolphin Drilling’s CFO Stephen Cox said in December: “The net effect is a potential broadening of the tax net, and it could capture others assets, other firms into this and definitely broadens the remit HMRC has, which is a big negative for the industry, in my view.”
