DUBAI, UAE (ChatnewsTV) — Shelf Drilling, a Dubai-based offshore drilling contractor, has secured new assignments for two of its jack-up rigs to carry out drilling activities off the coast of Nigeria, reinforcing its presence in West Africa.
The company confirmed the full execution of a three-year contract for its Shelf Drilling Achiever rig, which is set to begin operations offshore Nigeria in October 2024. The deal includes an option to extend the contract for up to two years at mutually agreed rates.
The 2019-built Shelf Drilling Achiever, a 350-foot GustoMSC CJ46-X100-D jack-up rig, was previously under contract with Aramco before the Saudi oil and gas giant terminated the deal. The termination allowed the rig to mobilize to West Africa for its new assignment.
In addition to the Achiever, Shelf Drilling has secured a two-year extension for the Adriatic I rig, with operations scheduled to start in February 2025. This extension will follow the rig’s current work in Nigeria, continuing its operations seamlessly. The contract also includes an option for an additional one-year extension.
Greg O’Brien, Chief Executive Officer of Shelf Drilling, expressed optimism about the company’s expanded footprint in Nigeria. “These contracts in Nigeria contribute significant backlog and revenue visibility for Shelf Drilling in 2025 and beyond,” O’Brien said. “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.”
The Adriatic I, built in 1981 and upgraded in 2014, is a Marathon LeTourneau 116-C design rig that can operate in water depths up to 350 feet and accommodate 120 crew members. The rig’s current contract began in October 2023, firm until February 2025, and the new extension ensures it will remain in Nigerian waters beyond that period.
Shelf Drilling estimates the total firm contract value for both rigs over the five-year period at $234 million, excluding mobilization and demobilization revenue.
The company is also pursuing a consolidation strategy through a proposed merger involving its subsidiary SHLF MergCo and Shelf Drilling North Sea (SDNS), aimed at enhancing its business prospects.
Last month, Shelf Drilling sold another jack-up rig, which is set to begin a decommissioning assignment in Malaysian waters under its new ownership.
