Arbitration finale of rig termination saga bringing $105 million to Dolphin Drilling

July 15, 2025, by Melisa Cavcic

Following its arbitration win in a case concerning the termination of a drilling contract off the coast of Nigeria, Scotland-headquartered offshore drilling contractor Dolphin Drilling has received the go-ahead to kick off the collection proceedings to obtain its arbitration award from Lagos-based General Hydrocarbons Limited (GHL).

Blackford Dolphin rig; Source: Dolphin Drilling

The outcome of the arbitration with General Hydrocarbons came after the rigmarole saga, which was set in motion by Dolphin Drilling’s termination of the Blackford Dolphin rig’s contract with Lagos-based firm and the request for arbitration to pursue the recovery of sums remaining due by GHL.

After the rig owner managed to get the ex parte order of arrestment that was in force against its semi-submersible rig lifted, the offshore drilling player had to tackle the Nigerian court proceedings to oppose claims Technova Africa International (Technova) made.

While providing an update on the arbitration award obtained against General Hydrocarbons, Dolphin Drilling revealed that Nigeria’s Federal High Court of Lagos made an order on July 14, granting the rig owner leave to enforce the arbitration award.

The company has confirmed the total sum due under the arbitration award of approximately $105 million, alongside its determination to continue to pursue collection efforts. In the aftermath of the submission of a bank guarantee of $20 million, the Blackford Dolphin rig left Nigerian waters and went to India to begin its drilling contract.

The 1974-built Blackford Dolphin semi-submersible drilling rig of an enhanced Aker H-3 design, which can accommodate 120 people, embarked on its 14-month hydrocarbon exploration campaign with Oil India in November 2024.

Meanwhile, one of the rigs, which Dolphin Drilling bought from Transocean, started its plug and abandonment (P&A) job in the UK North Sea in May 2025.