Paratus rig duo’s drilling contracts cut short

An unnamed client of Fontis Holdings, a wholly owned subsidiary of Bermuda-headquartered Paratus Energy Services, has opted for early termination of contracts for two jack-up rigs from its fleet.

As a result of the early termination, the drilling contracts for the Courageous and the Intrepid jack-up rigs will now expire on February 28, 2026, instead of November 29, 2026, and May 27, 2026, respectively. This is expected to reduce Fontis’ backlog to around $39 million, making up 3% of Paratus’ overall $1.2 billion backlog.

The rigs were built by Keppel, Courageous in 2007, and Intrepid in 2008. Both feature the LeTourneau Super 116C independent leg cantilever design and are 74 meters long and 62 meters wide.

While the client’s name has not been disclosed, unfavorable contract terms, such as limited suspension rights and indexation structure of day rates, and economic considerations have been cited as possible reasons by Paratus.

Furthermore, the Bermuda-based player believes that the termination could enable the client to better align contractual terms across its service providers next year but says there is no reason to believe that the action was driven by reduced operational need for drilling rigs in 2026.

Additionally, the client has no remaining contractual flexibility to further shorten the contracts for any of Fontis’ rigs. 

This follows the 78-day contract extension for the Oberon jack-up rig Fontis secured last week. The 2013-built rig of Friede & Goldman JU2000E design is 70 meters long and 75 meters wide.

Paratus currently has all its 11 assets under contract, with 10 contracted into next year or beyond, and the majority of contracts extending to 2027 or 2028. Fontis’s five-rig fleet is also fully booked.

Last June, the holding company disclosed its intention to list the firm’s shares on the Euronext Growth stock exchange market in Oslo, Norway, followed by a planned uplisting to the Oslo Stock Exchange.