Fred Olsen Energy’s subsidiary Dolphin Drilling has signed a letter of intent to procure the semi-submersible Blackford Dolphin for the drilling of a well, offshore Brazil.

Drilling is expected to begin in the fourth quarter of 2011 and will continue for 135 days.

The total value of the contract is estimated at $47m, and the contract remains subject to final contract agreement, partner and management approvals.

The contract is expected to receive all of its required approvals by the end of May 2011.