After rig suspension, Shelf Drilling releases 42-year-old jack-up from active duty

UAE-headquartered offshore drilling contractor Shelf Drilling (SHLF) has decided to remove its 1982-built jack-up rig from active service, following a recent suspension of operations in the Middle East. The rig’s contract with Aramco, Saudi Arabia’s oil and gas giant, will be terminated.

After Aramco pulled the brakes on various drilling assignments, many offshore drilling players received rig suspensions in the Middle East, including Shelf Drilling, which initially got notices for four jack-up rigs. The list was later extended to include more rigs.

Among the rigs that received suspensions from Aramco was the Main Pass I jack-up, for which the rig owner struck a deal with an undisclosed firm that will buy it for a total consideration of $11 million.

While the sale is subject to customary closing conditions, it is expected to be finished by February 2025. Therefore, Shelf Drilling has now served Aramco with a notice to terminate the suspended drilling contract in the Middle East.

According to Shelf Drilling, the rig will be permanently retired from drilling operations with the major drilling equipment and inventory removed for use across its fleet. The 1982-built Main Pass I 300-foot jack-up rig was last upgraded in 2013.

Another rig, which received a suspension of operations from Aramco, recently secured a drilling assignment off the coast of Nigeria. The UAE player’s contracted backlog was $2 billion in Q3 2024, with 32 of 35 rigs under contract representing a marketed utilization of 91%.

Recently, Shelf Drilling said goodbye to another jack-up sold to an unnamed buyer. The new rig owner intends to deploy the 1983-built rig on a multi-year plug and abandonment (P&A) program in Malaysia.