Shelf Drilling’s jack-up pair finds more rig work in Nigeria

Dubai-headquartered offshore drilling contractor Shelf Drilling has secured more assignments for two rigs in its jack-up fleet, which will carry out drilling activities off the coast of Nigeria.

Shelf Drilling has confirmed the full execution of a three-year contract for the Shelf Drilling Achiever jack-up rig. Thanks to this, the operations offshore Nigeria are planned to kick off in October 2024. This deal also entails an option for up to two years at rates to be mutually agreed upon at the time of the extension.

The 2019-built Shelf Drilling Achiever 350-foot GustoMSC CJ46-X100-D rig was with Aramco before the Saudi Arabian oil and gas giant terminated the deal, enabling the jack-up to mobilize to West Africa.

The rig owner has also won a two-year extension for the Adriatic I jack-up rig, which is slated to begin in February 2025, in direct continuation of the rig’s current work in Nigeria, plus an additional one-year option.

Following a 16-month contract in October 2023, the deal for the Adriatic I rig was firm until February 2025, however, the latest extension has now prolonged its stay in Nigerian waters. The jack-up’s previous deal was a 90-day contract in Nigeria, which commenced in May 2023.

The 1981-built Adriatic I jack-up rig had its last upgrade in 2014. This rig is of a Marathon LeTourneau 116-C design. The rig can operate in water depths of up to 350 ft and accommodate 120 people.

Greg O’Brien, Chief Executive Officer of Shelf Drilling, commented: “These contracts in Nigeria contribute significant backlog and revenue visibility for Shelf Drilling in 2025 and beyond.

“We look forward to delivering continued strong safety and operating performance with the Adriatic I following many years of continuous activity in Nigeria and successfully bringing the Shelf Drilling Achiever into operations later this month.”

According to the offshore drilling player, the combined contract value for the five-year total firm period added for the two rigs, excluding mobilization and demobilization revenue, is $234 million.

Shelf Drilling is pursuing a consolidation move, which is structured as a proposed triangular merger between itself as the issuer of the merger consideration shares, its indirect subsidiary SHLF MergCo, and Shelf Drilling North Sea (SDNS) as the surviving entity in the proposed business combination.

Last month, the firm sold a jack-up rig that will work on a decommissioning assignment in Malaysian waters for its new owner.