Aramco hits pause button on ops of another Shelf Drilling jack-up rig

UAE-headquartered offshore drilling contractor Shelf Drilling (SHLF) has confirmed the receipt of one more notice of temporary suspension of operations for another jack-up rig working off the coast of Saudi Arabia in the Middle East, as Aramco, the country’s energy giant, continues its rig suspension spree.

The latest suspension notice, which has been received for the High Island II rig, is expected to start in the coming weeks. Shelf Drilling explains that it will have the right to actively market the rig to secure other opportunities and terminate the contract during the suspension period.

With a max drilling depth of 20,000 feet and the ability to operate in a water depth of 270 feet, the High Island II jack-up rig features a Marathon LeTourneau 82-SD-C design and can accommodate 99 people. The rig, which was built in 1979, had its last upgrade in 2021.

This jack-up has been working in Saudi Arabia for Aramco since March 2020, and the contract was expected to end in March 2030. The suspension follows closely behind the one Shelf Drilling received for the High Island IV jack-up rig from Saudi Aramco for up to one year. The firm also disclosed at the time that the suspension would start in late November 2024.

Another offshore drilling contractor, Borr Drilling, also recently confirmed the receipt of a one-year temporary suspension of operations from Aramco for one of its jack-up rigs. These are not the only rig suspensions issued by Aramco, as the company paused the drilling operations of multiple rigs earlier this year.

As of September 30, 2024, Shelf Drilling’s contracted backlog was $2 billion, with 32 of 35 rigs under contract representing a marketed utilization of 91%.