A brewing contract dispute between Nigerian unbiased oil firm Peak Petroleum and Norwegian drilling contractor Dolphin Drilling has escalated, with Peak formally notifying Dolphin of authorized motion over the termination of a rig contract.
In response to a web-based publication, Upstream, Oslo-listed drilling contractor Dolphin on 24 December confirmed it had obtained formal discover of authorized motion from the Nigerian unbiased Peak, which disputes the termination of the contract.
“Dolphin Drilling disputes this place and along with its authorized advisors will take the suitable measures,” the corporate mentioned in a press release.
“Additional updates to the market can be offered as and when out there.”
Peak in March signed a contract to constitution Dolphin’s semi-submersible rig Blackford Dolphin for between 120 and 485 days at an efficient dayrate of $325,000 for the agency interval of the contract, together with the mobilisation payment.
“The ultimate award of the contract for Blackford Dolphin reveals the alternatives in Nigeria at a robust dayrate, along with constructing on the backlog for the rig. It additionally underlines the attractiveness of our belongings, and we stay up for returning to revenue-generating operations in 2023,” Bjornar Iversen, Dolphin Drilling chief government mentioned on the time.
Nonetheless, Dolphin on 1 December introduced it had terminated its contract with Peak.
Upstream on 28 November reported that Peak had chartered the Blackford Dolphin for drilling operations after its present contract with Common Hydrocarbons Restricted (GHL), additionally offshore Nigeria, ends in March 2024.
Nonetheless, Peak didn’t pay the $6 million mobilisation payment, and Dolphin at the moment mentioned due to this fact it was now not contemplating this contract in its calculation of income backlog.
“The contract backlog reported within the third quarter 2023 report was adjusted for the contract termination, and can stay on the similar degree as reported,” Dolphin Drilling mentioned at the moment.
The Blackford Dolphin early this 12 months accomplished its five-year recertification in Las Palmas, Spain, earlier than mobilising to Nigeria its 12-month constitution for GHL.
Peak couldn’t be contacted instantly for remark on the time of publication.
