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Contracts for Shelf Drilling jackup quartet suspended

Contracts for Shelf Drilling jackup quartet suspended

 

Oslo-listed jackup rig pure-play Shelf Drilling has received a notice of suspension of operations from an undisclosed Middle Eastern customer for four of its rigs.

The company is in active discussions with the customer to determine which rigs will be suspended and the exact timing of the suspensions.

Shelf Drilling said that it would have the right to actively market the rigs to other customers and opportunities and to terminate the applicable contracts during the suspension period.

The offshore driller believes that the suspensions will impact the company’s financial guidance given in Shelf Drilling’s reports in the fourth quarter of 2023. Once precise details on the rigs and timing are known, it will assess the impact of the suspension notice and provide an update to the guidance as part of its first quarter of 2024 reporting.

Even though the rigs and the client are not known, the company’s fleet status report from March this year points to Saudi Aramco as the possible client as it is the only Middle Eastern client with four or more rigs working for it.

Namely, the Saudi giant has nine Shelf Drilling jackups on hire – Harvey H. Ward, Shelf Drilling Achiever, Shelf Drilling Victory, Main Pass I and IV, and the High Island II, IV, V, and IX.

“We are disappointed with the decision to suspend four of our rigs, particularly in light of the outstanding operating performance of our rigs and teams over many years in the Middle East. This recent development will create near-term challenges, but we remain optimistic in the long-term outlook for the business,” said David Mullen, CEO of Shelf Drilling.

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Published: 01-04-2024

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