Dolphin Drilling Ltd says today they have received a termination for convenience notice from Anadarko Petroleum Corporation for the contract of their Belford Dolphin drillship. The termination will be effective in early September 2015 and comes with a termination fee of approximately USD 52 million.
The termination fee will help to cover the 5-year Class Renewal Survey (CRS) which Dolphin Drilling says in scheduled in the 2nd and 3rd quarter of 2015. The five-year CRS and upgrades is estimated to take approximately 100 days and cost USD $130 million.
The Belford Dolphin has been working for Anadarko under a four-year, USD $701 million drilling contract since 2012 with an original contract expiration date of Q1 2016. The unit has been operating offshore Mozambique.