Dolphin Drilling Pushes On After Bankruptcy

Dolphin Drilling filed for bankruptcy June 26, but the Norwegian oil and gas rig operator will be kept alive by creditors.

A leading, harsh-environment  drilling contractor for the offshore oil and gas industry, Dolphin announced that it has successfully completed a financial restructuring which will enable it to move forward and deploy its rigs in the UK and Norwegian markets.

Dolphin Drilling owed just over $1bn at the end of 2018 and recorded a net loss close to $300mn. The company struggled with the 2014-16 collapse in oil prices and competition from newcomers that drove down rig rates. It will be “wound down in an orderly fashion,” according to a statement.

Dolphin Drilling’s operating subsidiaries have now been transferred to a new holding company, Dolphin Drilling Holdings Limited. Incorporated in Jersey, the new entity will be net-debt free, with a strong balance sheet and increased financial flexibility, Dolphin claims.

Investment funds advised by Strategic Value Partners (SVP) will be the main shareholders of the restructured entity. They are “fully supportive of the company and the new management team,” the statement continued.

It is understood that SVP will acquire the debt. Other creditors including Danske Bank, DNB, SEB and Swedbank will be shareholders in the new entity.

The incoming CEO of Dolphin Drilling Bjornar Iversen said: “We are delighted that Dolphin Drilling has now emerged in a strong position for the future. In addition to the company’s focused, nimble fleet and high-quality team, we now have the firm financial footing we need to win new business.”