Fred. Olsen sells ‘Borgsten Dolphin’ for scrap
- Exploration & Production
Fred. Olsen Energy, a Norwegian offshore drilling contractor, will sell its tender support vessel Borgsten Dolphin for decommissioning.
The rig has been cold-stacked in Invergordon, Scotland after the early termination of its contract with Total in 2016.
The oil company had hired the Borgsten Dolphin back in 2011 for a 40-month program to undertake tender support services at the Dunbar platform in the Northern North Sea. Prior to starting the contract, the 1975-built semi-submersible rig was upgraded and converted to a tender support vessel.
In June 2015, Total and Dolphin amended the contract to cover a revised contract period starting October 1, 2015, and continuing to January 31, 2018, subject to certain early termination rights from end 2016.
In October 2016, the contract was terminated, with Total paying an early termination fee of $22.1 million.
Fred. Olsen said that after evaluating all alternative solutions, the company decided to decommission the unit.
“The transaction is estimated to take place in third quarter 2017. In relation to the decommissioning of the unit, a repayment of the bank facility of approximately 4.25 million will take place,” Fred. Olsen said.
Offshore Energy Today Staff