Shelf Drilling Secures $234 Million in Contracts for Nigerian Offshore Operations
Shelf Drilling, an Oslo-listed drilling contractor, has secured contracts worth around $234 million for two jack-up rigs set to operate off the coast of Nigeria.
The Dubai-based company confirmed a three-year contract for its rig, the Shelf Drilling Achiever, with operations expected to begin in October 2024. The contract also includes an option to extend the deal for an additional two years.
According to the company’s statement, the total value of the contracts over the possible five-year period, excluding mobilisation and demobilisation costs, amounts to $234 million.
“These contracts in Nigeria provide significant backlog and revenue visibility for Shelf Drilling into 2025 and beyond. We’re excited to deliver strong safety and operational performance with the Adriatic I, following years of successful operations in Nigeria. We also look forward to starting operations with the Shelf Drilling Achiever later this month,” said Greg O’Brien, CEO of Shelf Drilling.
In a previous deal announced in September, Shelf Drilling secured a contract for the Shelf Drilling Mentor to cover 10 wells over an estimated 450 days, valued at $60 million. This contract will follow directly from the rig’s current work in Nigeria.
The Shelf Drilling Achiever was transported to West Africa aboard a dry transport carrier, and the company also used the same carrier to mobilise its Main Pass IV rig.
In a separate statement, O’Brien expressed his satisfaction with the recent contracts, saying, “We are thrilled with these new awards, which reinforce our strong presence in West Africa and highlight the strength of this market. These deals also support our decision to mobilise two rigs from the Middle East, and we’re confident that operations for the Main Pass IV will commence shortly after its arrival.”
In other news, Shelf Drilling completed the sale of its Baltic jack-up rig for $60 million. The unnamed buyer plans to use the rig for a multi-year plug and abandonment (P&A) project in Malaysia. Shelf Drilling has agreed to provide rig management and operational support for the upcoming P&A campaign.
The Baltic rig recently completed its contract in West Africa in June.
Shelf Drilling positions itself as a leading global contractor for shallow water offshore drilling, with operations in regions including the Middle East, Southeast Asia, India, West Africa, the Mediterranean, and the North Sea.
Founded in 2012, the company says it has built a strong reputation within the industry thanks to its tailored approach and close relationships with top clients.
Earlier this year, in April, the company received notification from a customer in the Middle East regarding the suspension of operations for four of its jack-up rigs. The customer’s identity was not disclosed.
