Dolphin Drilling announced its intention to sell for scrapping its Bideford Dolphin drilling rig, which has 49 years of service. Built in 1975 and undergoing modifications in 1998, the platform has been managed by Dolphin Drilling during its operation.
The purpose of decommissioning the drilling platform
The company has also stated that this measure is in line with its strategy to optimize the fleet and improve operating efficiency. In a statement issued a few days ago, Dolphin Drilling indicated that the oil platform will be dismantled in a responsible manner, following current international standards.
It should be noted that Dolphin Drilling maintains four upgraded fourth and fifth generation Aker H3 and H4 units in its fleet, which include the Borgland Dolphin platforms, Blackford Dolphin Paul B. Loyd, Jr. and Dolphin Leader.
The company’s decision to decommission the Bideford Dolphin rig underscores the challenges facing the offshore drilling industry at a time when sustainability and efficiency are becoming key priorities. This move reflects a shift in the industry towards modernization and environmental responsibility, marking the end of an era for traditional drilling rigs.
Dolphin Drilling’s current situation
Dolphin Drilling is currently involved in litigation before the Supreme Court, having lost an appeal in the Court of Appeals. The legal dispute, which has dragged on for years with HMRC, could have significant consequences for the operation of hundreds of rigs and vessels in the UK maritime sector.
The company has appealed for support from fellow British rig owners, sending a memo to members of the British Association of Platform Owners and the UK Chamber of Shipping, urging them to back its petition for a Supreme Court hearing. The Court of Appeal’s decision in December sets a precedent with broad implications on tax deduction claims in the sector under corporate tax law.
This legal dispute arose from a 2014 agreement between HMRC and Dolphin after TotalEnergies contracted the Borgsten Dolphin platform in the North Sea.
Stephen Cox, the company’s CFO, has pointed out that this case could significantly expand the scope of taxation, affecting other assets and companies and extending HMRC’s powers, which he believes is detrimental to the industry.
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Source: energyvoice.com
Photos: shutterstock
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