Fred. Olsen Energy subsidiary Dolphin Drilling has signed a letter of intent (LOI) Karoon Petroleo & Gas for providing a semi-submersible drill rig for a drilling program in offshore Brazil.

The contract value is estimated to be $53.2m for five month.

Under the terms of the contract, Dolphin Drilling will provide the semi-submersible Blackford Dolphin for drilling three wells.

The contract, expected to commence next year, is subject to final contract agreement which is anticipated to be closed within June this year.