Dolphin Drilling Wins $100M Arbitration in Nigeria Dispute

By:  Kemal Can Kayar

Dolphin Drilling won a $100 million arbitration against General Hydrocarbons in Nigeria over unpaid funds, while disputing legal action related to a terminated contract. North Sea drilling firm Dolphin Drilling has won $100 million in an arbitration case against Lagos-based General Hydrocarbons Ltd over a contract involving its Blackford Dolphin rig. The company has announced plans to begin immediate collection efforts for the awarded sum. The dispute arose from a 2023 offshore Nigeria contract where the Blackford Dolphin rig operated at a $260,000 daily rate for General Hydrocarbons. Originally set for 12 months, the contract’s completion was to lead to a new agreement with Peak Petroleum. However, Dolphin terminated the Peak deal due to unpaid funds, despite extensive collection efforts. By November 2023, Dolphin revealed a $41 million receivable balance from General Hydrocarbons, which included $6 million owed directly by Peak Petroleum. The Oslo-listed company has since collected $2.5 million, including $2 million in January. Dolphin is also facing separate legal action over its decision to end the Peak contract. The company confirmed receiving notice of the case on Christmas Eve 2023, asserting that it would contest the claims with its legal team. The Blackford Dolphin rig is expected to be available for new assignments by the end of Q1 2024. This arbitration victory marks a significant financial and legal milestone for Dolphin Drilling as it navigates ongoing challenges in the Nigerian offshore sector.

Source: focusea TV