Dolphin Geophysical files for bankruptcy

Norwegian seismic provider Dolphin Geophysical filed for bankruptcy Monday after it failed to reach a restructuring deal with stakeholders. GC Rieber Shipping, which has three vessels leased to Dolphin on long-term contracts, said it was owed it $20 million.

Dolphin reported net losses of $15 million and $31 million in the second and third quarters of 2015, respectively. Despite winning a 3D-seismic survey contract in India in November, the company’s executives said in a meeting on Friday that stakeholders had failed to reach an agreement on compensating for the company’s losses.

With major oil and gas companies slashing spending on new oil and gas projects, especially in costly offshore assets, owing to the oil price slump, services companies such as Dolphin have taken a hit. The Telegraph reported in September that oil company investment in the North Sea, one of Dolphin’s largest operation regions, would decrease by $6 billion per year until 2018.

Several exploration and production companies have filed for bankruptcy in 2015 as well due to the sustained oil price slump, including US independents Energy & Exploration Partners, Samson, and Milagro.