Dolphin Drilling agrees Blackford Dolphin sale and outlines SPM partnership
Dolphin Drilling has entered into a definitive agreement to sell its semi-submersible drilling rig Blackford Dolphin to SPM Energy Shipping FZCO, or its guaranteed nominee, for a total consideration of up to US$25 million. The transaction is expected to close on or around 5 November 2026 in Singapore.
Alongside the sale agreement, the two companies have signed a memorandum of understanding concerning the management of future drilling contracts for Blackford Dolphin and one additional semi-submersible drilling rig. The proposed arrangements could also extend to other rigs or units agreed upon by the parties, subject to further documentation.
The company said the transactions are intended to reduce its operating costs and capital expenditure commitments while creating opportunities for future revenue from rig management services.
Sale terms and proposed management arrangements
Under the sale agreement, Dolphin Drilling will receive US$10 million upon delivery of Blackford Dolphin. A further US$15 million will become payable when SPM receives its first payment under a potential future drilling contract.
The second payment is therefore dependent on a future contractual event and is not guaranteed at the time of the announcement.
The proposed management arrangements would involve SPM marketing the rigs in India and other mutually agreed markets. SPM, as owner, would also cover capital expenditure, operating expenses and guarantees associated with future drilling contracts.
Dolphin Drilling would contribute its operating platform and technical expertise, potentially generating management fees without retaining the same level of direct ownership-related expenditure.
However, the memorandum does not constitute a final management agreement. The arrangements remain subject to definitive documentation and customary closing conditions.
Financial position and strategic objectives
Dolphin Drilling expects the sale to reduce its operating cost base and eliminate the capital expenditure associated with the class renewal survey of Blackford Dolphin. The company also anticipates that the transaction will contribute to reducing interest-bearing debt.
At the end of the second quarter of 2026, Dolphin Drilling reported total cash of US$55.1 million and a firm contracted revenue backlog of US$556 million, with a further US$446 million in options. These figures reflected multi-year contracts secured for Paul B. Loyd Jr. and Borgland Dolphin.
Ronny Bjørnådal, Chairman of the Board of Directors of Dolphin Drilling, said the sale and contemplated management arrangements would reduce the company’s financial exposure while preserving opportunities to generate future management revenue.
The company also identified its cooperation with SPM and marketing consultant Valiant Oil and Gas LLC as part of its wider efforts to pursue growth opportunities in offshore drilling markets.
Dolphin Drilling described the market for semi-submersible drilling rigs as constrained by limited newbuilding activity and the retirement of older units. It identified India, Southeast Asia, Mexico and West Africa among the regions where offshore development activity could support future demand.
Completion of the Blackford Dolphin sale remains pending, while the proposed management partnership will require additional agreements before becoming definitive.
