Dolphin Drilling AS said an undisclosed party has signed a letter of intent for a contract for the rig Borgland Dolphin, with a potential value of about $230 million.

The contract is scheduled to begin in the second half of 2027, in direct continuation after Borgland Dolphin is released from its existing contract with Repsol Investigaciones Petroliferas S.A.

The firm term is set to run until the expiry of the rig’s current Special Period Survey in October 2031, including mobilization and demobilization. The contract is also expected to include options for a further five years.

The parties intend to continue negotiating the contract under the letter of intent. The company said the LOI includes a termination fee of up to $3.8 million in favor of Dolphin Drilling AS and remains subject to final agreement and respective management approvals.