Standard ETC Buys Stake In Norwegian Offshore Driller For $10MM
Cyprus-based S.D. Standard ETC has announced the acquisition of 25 percent of Dolphin Drilling, a harsh environment drilling operator for the offshore oil and gas industry, for $10 million through an equity issue.
Standard ETC's acquisition of the Dolphin Drilling stake through an equity issue for a cash consideration of $10 million, with warrants to invest an additional $5 million, brings the total ownership up to 32.5 percent. According to Standard, Dolphin Drilling has no interest-bearing debt.
“We´re pleased to announce our investment in Dolphin Drilling, a company with deep industrial roots dating back to 1965 as one of the first drilling companies to operate in the North Sea. Today, the company owns and operates three energy-efficient moored semi-submersible rigs and employs approximately 350 people,” said Martin Nes, Chairman of the Board of Directors of Standard ETC.
“The current market provides opportunities for debt-free drilling contractors with ready-to-drill assets, and we look forward to working with the Dolphin team to realize the potential of the current fleet and future rig management operations,” Nes added.
Formerly known as Fred Olsen Energy, Dolphin Drilling owns and operates a fleet of 5th and 6th generation enhanced Aker H3 units with high technical standard and a broad operational track record.
The company has approximately 350 employees at operational bases in Scotland, Norway in addition to offshore personnel.
Øystein Stray Spetalen and Martin Nes will join the Board of Directors of Dolphin Drilling, with Nes proposed as Chairman.
At the end of March 2022, Standard ETC held cash and marketable securities of approximately $80 million. In addition, the company owns a fleet of seven platform supply vessels of which two fully owned large-sized PSVs with 11,302 square foot deck area.
Standard Viking operates on a day rate of $13,516 until January 2023, while the Standard Supplier currently operates on a day rate of $18,320. The company holds 28 percent of five mid-sized PSVs. Presently, spot rates are between $18,000 and $24,500 for PSVs.
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