Dolphin Drilling has agreed a Blackford Dolphin sale to SPM Energy Shipping FZCO for up to USD 25 million. The agreement provides for USD 10 million on delivery, while the remaining USD 15 million would become payable when SPM receives its first payment under a potential future drilling contract.
Signed on 26 October 2026, the sale agreement covers the transfer of the semi-submersible drilling rig by a Dolphin Drilling subsidiary to SPM or a nominee guaranteed by SPM. The companies expect to complete the transaction in Singapore around 5 November 2026.
A separate memorandum of understanding, signed the same day, outlines a possible management role for Dolphin Drilling on Blackford Dolphin and another semi-submersible rig. Its scope could expand to further rigs or units by mutual agreement. Implementation requires definitive agreements and fulfilment of customary closing requirements.
Under the proposed structure, SPM would seek drilling work for the rigs in India and other mutually agreed markets. As owner, it would finance capital requirements and operating expenditure and provide guarantees associated with future drilling assignments. Dolphin Drilling would supply operating and technical expertise. The proposed partnership also involves marketing consultant Valiant Oil and Gas LLC.
Dolphin Drilling expects the disposal to lower operating expenditure and remove the need to finance Blackford Dolphin’s class renewal survey. It also anticipates a reduction in interest-bearing borrowings from the transactions. Chairman Ronny Bjørnådal said management work on the rig and additional units could provide future fee income.
The company reported total cash of USD 55.1 million at the end of the second quarter of 2026. Firm contracted revenue was USD 556 million, with a separate USD 446 million in options, following multi-year awards for Paul B. Loyd Jr. and Borgland Dolphin.
In its latest reported quarter, Paul B. Loyd Jr. recorded uptime of 99.8%, compared with 90.2% for Blackford Dolphin. The latter had also completed 1,000 days without a lost-time injury.
Dolphin Drilling linked the proposed arrangements to its ongoing assessment of growth opportunities and participation in industry consolidation. The company’s stated market outlook cited limited new construction and the retirement of older moored floaters as constraints on supply. It also pointed to offshore investment and energy security priorities as sources of demand, including in India, Southeast Asia, Mexico and West Africa.
