Offshore drilling contractor Dolphin Drilling, a subsidiary of Fred. Olsen Energy, has entered into an early termination agreement with Total E&P UK for the tender support vessel Borgsten Dolphin.
The driller’s parent company informed on Friday that the agreement will result in a cessation of offshore services on October 1, 2016, and the unit mobilizing inshore for expected cold stacking thereafter. The unit was operating for Total under a dayrate of $166,000.
Further, the company said, Total will pay an early termination fee of approximately $22.1 million in addition to payment for services provided until October 1, 2016.
The oil company hired the Borgsten Dolphin back in 2011 for a 40-month program to undertake tender support services at the Dunbar platform in the Northern North Sea. Prior to starting the contract, the 1975-built semi-submersible rig was upgraded and converted to a tender support vessel.
In June 2015, Total and Dolphin amended the contract to cover a revised contract period starting October 1, 2015, and continuing to January 31, 2018, subject to certain early termination rights from end 2016.
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