Icon Offshore’s jack-up rig adds four more wells to backlog

Malaysia’s oilfield services provider Icon Offshore has secured more work for a jack-up drilling rig for operations on a total of four wells offshore Malaysia.

Icon said in a Bursa Malaysia filing on Tuesday that its subsidiary, Perisai Offshore, had received a letter of award from an unnamed, petroleum arrangement contractor (PAC) to exercise extension options No. 1 and 2 for the provision of one jack-up drilling rig.

Perisai Offshore was acquired by Icon via the completion of 51 per cent shares acquisition from Perisai Petroleum Teknologi Berhad. This also included the acquisition of the Perisai Pacific 101 jack-up rig and the purchase and assignment of intellectual property to operate the rig.

Further, Icon said in the filing that the PAC had on 29 December 2020 issued a letter of award to Perisai Offshore for its drilling programme which started in mid-April 2021 for a duration of 180 days for eight wells.

In the letter of award, there were provisions for three contract extensions for up to six wells. The value of the contract was approximately $13.3 million. According to previous information, the contract was awarded by Petrofac.

On 23 September 2021, Perisai Offshore received a letter of award from the PAC to exercise extension options No. 1 and No. 2 for the drilling programme. The expected start is in October 2021 for a period of 120 days for four wells.

Under the first extension option, three wells will be drilled and the remaining well will be drilled under the second extension option.

The contract award is expected to contribute positively to the earnings, order book and net assets of Icon for the financial year ending 31 December 2021 and beyond. With this award, the company’s order book will increase to RM770 million (about $184 million).