A brewing contract dispute between Nigerian independent oil company Peak Petroleum and Norwegian drilling contractor Dolphin Drilling has escalated, with Peak formally notifying Dolphin of legal action over the termination of a rig contract.
According to an online publication, Upstream, Oslo-listed drilling contractor Dolphin on 24 December confirmed it had received formal notice of legal action from the Nigerian independent Peak, which disputes the termination of the contract.
“Dolphin Drilling disputes this position and together with its legal advisors will take the appropriate measures,” the company said in a statement.
“Further updates to the market will be provided as and when available.”
Peak in March signed a contract to charter Dolphin’s semi-submersible rig Blackford Dolphin for between 120 and 485 days at an effective dayrate of $325,000 for the firm period of the contract, including the mobilisation fee.
“The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” Bjornar Iversen, Dolphin Drilling chief executive said at the time.
However, Dolphin on 1 December announced it had terminated its contract with Peak.
Upstream on 28 November reported that Peak had chartered the Blackford Dolphin for drilling operations after its current contract with General Hydrocarbons Limited (GHL), also offshore Nigeria, ends in March 2024.
However, Peak failed to pay the $6 million mobilisation fee, and Dolphin at that time said therefore it was no longer considering this contract in its calculation of revenue backlog.
“The contract backlog reported in the third quarter 2023 report was adjusted for the contract termination, and will remain at the same level as reported,” Dolphin Drilling said at that time.
The Blackford Dolphin early this year completed its five-year recertification in Las Palmas, Spain, before mobilising to Nigeria its 12-month charter for GHL.
Peak could not be contacted immediately for comment at the time of publication.
