Dolphin Drilling reveals refinance plan for 35-year-old rig

Norway-headquartered offshore drilling contractor Dolphin Drilling has tweaked the terms of the deal for its multimillion-dollar facility agreement with security, among other things, over the 1990-built semi-submersible rig it acquired from Transocean, providing for amortization relief of the installments payable for the three months from April to June 2025.

The rig owner’s refinancing plan has enabled it to enter into an amendment agreement regarding its existing $65 million facility agreement dated December 22, 2023, with security, inter alia, over the Paul B. Lloyd Jr. (PBLJ) rig.

This enables amortization relief of the installments payable for April, May, and June 2025 for a total amount of $5 million and a waiver of the market capitalization covenant from March 2025 until May 31, 2025, known as the waiver and payment deferral.

Furthermore, the lender under the secured facility has now consented to an extension of certain conditions for the waiver and payment deferral from May 5, 2025, until and including May 31, 2025. This mid-water harsh-environment rig, which is capable of operating at a maximum water depth of 600 meters, has a proven track record in the UK and Norwegian sectors of the North Sea.

While the rig entered service in 1990, after being built by Hyundai Heavy Industries in South Korea, it became the newest addition to Dolphin’s fleet in 2024. Previously, the Paul B Lloyd Jr. semi-sub, which is of Aker H 4.2 harsh environment design, was part of Transocean’s rig fleet.

With an enhanced Aker H-4.2 design, the semi-submersible is said to feature superior stability in rough seas and harsh weather, as well as advanced subsea handling capabilities. This rig is in the UK on an assignment with Harbour Energy, which is valid until February 2028.

Last year, Dolphin Drilling sent one of its rigs to Las Palmas for reactivation ahead of work in the UK while deciding to sell another for recycling. The firm also ended up as the winner in arbitration proceedings, which revolved around the termination of a drilling contract off the coast of Nigeria.