Fred Olsen. Energy to scrap two rigs

Offshore driller Fred Olsen. Energy (FOE) has decided to scrap two of its drilling rigs, one semi-submersible and one drillship. 

In its report for the third quarter 2018 on Wednesday, Fred. Olsen said it would decommission the Bredford Dolphin and Belford Dolphin rigs.

Bredford Dolphin is currently in lay-up in Kvinesdal, Norway and Belford Dolphin is currently in lay-up in Labuan, Malaysia. The company said that, after all alternative solutions have been evaluated, it has decided to decommission the two units.

Bredford Dolphin is a semi-submersible drilling rig of an Aker H-3, MODU design. It was built in 1976 and had a major upgrade in 2007.

Belford Dolphin is a drillship built by Samsung Heavy Industries in 2000.

Regarding FOE’s other drilling rigs, four are currently smart stacked and only one rig, the semi-sub Blackford Dolphin, is under a contract with BP in the North Sea. This gig is set to expire this month with limited work remaining for the renewal in 2Q 2020. The driller said that this rig will also be smart stacked after the end of current contract.

More red ink for FOE 

When it comes to the company’s financial performance during the third quarter of the year, FOE recorded revenues of $18 million, a decrease from revenues of $76.3 million in the prior-year quarter.

Looking at segments, revenues from the offshore drilling division were $12.6 million and revenues within the engineering and fabrication division were $5.3 million.

The company also saw its net loss deepen during the third quarter of 2018 totaling $102.6 million compared to a loss of $45.7 million in the same period of 2017.

Offshore Energy Today Staff