Shelf Finds Work for Newbuild Jack-up Rig

Oslo-listed offshore driller Shelf Drilling has secured a contract for its newbuild drilling rig Shelf Drilling Achiever.

Shelf Drilling on Monday said the contract for the Shelf Drilling Achiever jack-up rig was three years. Shelf said the rig would operate in the Arabian Gulf for an undisclosed client.

The contract includes a one-year option. The planned start-up of operations is in the fourth quarter of 2019.

The driller recently completed the transaction to acquire from China Merchants’ two premium newbuild CJ46 jack-up rigs, and bareboat charter, with an option to purchase, of two additional premium newbuild CJ46 jack-ups.

The first two rigs, of Gusto MSC CJ46 design, are the said Shelf Drilling Achiever and the Shelf Drilling Journey.

The company last week reported a net loss attributable to common shares of $13,6 million for the quarter, which is an improvement compared to a loss of $43 million in the first quarter of 2018. Revenue for the 1Q 2019 was $147 million in line last year’s first quarter.

David Mullen, Chief Executive Officer, said last week that the closing of the transaction with China Merchants in May 2019 to add four premium newbuild jack‐ups “further strengthens our competitive position at a time we are seeing indications across our markets of significant improvement for jack‐up drilling services.”

He said: “Since the beginning of 2019, we have also secured new contracts or extensions on existing contracts for 8 rig years. We are in advanced discussions on a number of opportunities for the newbuild rigs and are confident that our strong customer relationships, proven operating track record and leading position in key geographies position Shelf Drilling very well to secure further contracts as the offshore drilling industry recovers.”

Shelf Drilling has $876 million in contract backlog at March 31, 2019, across 26 contracted rigs.