Dolphin Drilling, an offshore drilling contractor, sees its recent acquisition of two semi-submersible rigs from Transocean as a promising sign of expansion, not only in the UK but also on a global scale.

The company announced its intention to purchase the Paul B. Loyd Jr. and Transocean Leader rigs from Transocean for a total of $61.5 million, with an additional $3 million. To finance the acquisition of these two rigs, Dolphin Drilling initiated a private placement of approximately $60 million. The closure of this acquisition is scheduled for the second half of 2023.

Stephen Cox, Chief Financial Officer of Dolphin Drilling, commented on the deal, stating: "We are very focused on growing the Dolphin Drilling platform in a responsible and strategic manner, to serve the customer base, create and sustain employment opportunities, and benefit our wider stakeholder groups. We firmly believe this transaction not only achieves those aims but also cements our position as a provider of fit-for-purpose mobile offshore units, capable of delivering for customers in the many phases of work critical to support the energy infrastructure of the UK and other key markets."

The first rig, Transocean Leader, is an Aker H-4.2 non-self-propelled semi-sub rig built in 1987. It underwent significant upgrades in 1997 and 2012, has a maximum drilling depth of 25,000 ft., and can accommodate 110 people. The rig has been stacked in the UK's Cromarty Firth since 2020.

The second rig, Paul B. Loyd Jr., is of Aker H 4.2 design, constructed in 1990 at Hyundai Heavy Industries in South Korea. It can accommodate 120 people and operate in water depths of 1,969 ft, with a maximum drilling depth of 20,000 ft. The rig is currently engaged in operations for Harbour Energy in the UK, and a recent Letter of Intent (LOI) indicates a three-year extension of the firm contract period, expected to last until September 2027. With this extension and other options, Harbour Energy has an estimated contracted revenue backlog of $279 million.

Bjørnar Iversen, CEO of Dolphin Drilling, expressed excitement about collaborating with Harbour Energy on the Paul B. Lloyd Jr. rig in the UK, which sets the foundation for further growth both domestically and internationally. This acquisition represents a significant milestone in Dolphin Drilling's journey towards a promising future in the offshore drilling industry.