Dolphin Drilling Wins $105 Million in Nigerian Arbitration Battle
Scotland-based offshore drilling contractor Dolphin Drilling has secured a major victory in its arbitration dispute with Lagos-based General Hydrocarbons Limited (GHL), winning an award of approximately $105 million following the termination of a drilling contract off Nigeria’s coast.
Nigeria’s Federal High Court of Lagos granted the rig owner leave to enforce the arbitration award on July 14, clearing the way for Dolphin Drilling to begin collection proceedings against GHL. The landmark ruling ends a protracted legal battle that stemmed from the termination of the Blackford Dolphin rig’s contract.
The arbitration saga began when Dolphin Drilling terminated its contract with the Lagos-based firm and requested arbitration to recover sums remaining due. The situation became complicated when an ex parte order of arrestment was placed against the semi-submersible rig, requiring extensive legal maneuvering to lift the restraining order.
After successfully having the temporary restraining order lifted, Dolphin Drilling faced additional challenges from Nigerian court proceedings initiated by Technova Africa International (Technova), which the company had to oppose while pursuing its arbitration claim.
The company has confirmed its determination to continue pursuing collection efforts for the full $105 million award. Following the submission of a $20 million bank guarantee, the Blackford Dolphin rig was able to leave Nigerian waters and proceed to India to begin its new drilling contract.
The 1974-built Blackford Dolphin semi-submersible drilling rig, featuring an enhanced Aker H-3 design and capable of accommodating 120 people, successfully embarked on its 14-month hydrocarbon exploration campaign with Oil India in November 2024.
This victory represents a significant financial win for Dolphin Drilling and establishes important precedent for international drilling contractors operating in Nigerian waters.
Source: offshore-energy.biz
