BP hires Blackford Dolphin rig for UK North Sea well

British oil major BP has hired a semi-submersible drilling rig for operation in the UK section of the North Sea.

The rig, Blackford Dolphin, is owned by Dolphin Drilling Ltd., a subsidiary of Fred. Olsen Energy ASA. Fred. Olsen Energy said on Friday that the contract was for one well plus four option contract with BP.

The contract is scheduled to start in May 2018. The estimated contract value for the firm scope, estimated to 60 days, is GBP 5.9 million, Fred. Olsen said. Converted to U.S. dollars, the contract is $8.2 million, meaning the dayrate for the rig is around $136.000. The rig itself was built in 1974, undergoing a major deepwater upgrade in 2006/2007.

Blackford Dolphin is currently “smart-stacked” in Flekkefjord. Fred. Olsen has previously said it has introduced smart-stacking in order to preserve the units ready for new contracts.

Smart-stacked rigs are preserved, maintained, kept warm by regular integrated system testing and Class Renewal Survey (CRS) investments will be postponed.

The offshore fleet of Fred. Olsen Energy with subsidiaries consists of three ultra-deepwater/deepwater units and four harsh environment mid-water semi-submersible drilling units.

Worth noting, Blackford Dolphin is now the only Fred. Olsen rig with a secured contract.

Namely, the expiration of the contract in November 2017 the Bideford Dolphin rig had with Statoil, lead to the whole rig fleed being idle. Below is a screenshot of Fred. Olsen’s Fleet Status released in the third quarter of 2017.