Rigs report: suspended Aramco rigs seeking work

Earlier this year, Saudi Aramco startled markets by pausing its high-profile oil expansion programme, cutting its planned production capacity to 12M barrels per day (b/d), about 1M b/d below its previously announced targets.

In the process, the oil major sent suspension notices to several drilling contractors with as many as 22 jack-up contracts reportedly suspended due to the production rejig. 

Among these, Arabian Drilling confirmed the 12-month suspension of three contracts for its jack-ups with Saudi Aramco have yet to be finalised but are expected to take effect towards the end of Q3 2024. 

Arabian Drilling chief executive Ghassan Mirdad said the company is actively seeking opportunities to redeploy these rigs with other clients. It reported 100% utilisation for its offshore rig fleet in Q1 2024. Nine of the company’s 11 jack-ups are currently working for Aramco. 

Shelf Drilling and ADES Drilling, also affected by the suspension, have already found takers for their affected rigs. ADES signed a new deal with Thailand’s PTTEP for one of its jack-ups. The firm 18-month contract includes a nine-month extension option. The contract is worth US$94M and drilling offshore Thailand is expected to begin Q2 2024. The company expanded its Asia-Pacific presence last year after Indonesia’s Pertamina Drilling Services Indonesia awarded jack-up Emerald Driller a long-term deal which is due to begin in the second half of the year.

All four of the Shelf Drilling rigs that received suspension notices from Saudi Aramco have commenced their suspension periods of up to 12 months. Shelf Drilling Achiever, Shelf Drilling Victory, Main Pass I and Main Pass IV are currently suspended, but Shelf Drilling said it is actively marketing Achiever, Victory and Main Pass IV for other work. Main Pass I remains stacked in Saudi Arabia.

Rig moves
Arabia I, Borr’s 122-m jack-up, suspended for 12-months by Aramco in April, has mobilised to Bahrain’s Arab Shipbuilding and Repair Yard Co. During the suspension period, Borr Drilling intends to seek alternative engagement for the rig.
Odfjell Drilling’s Hercules semisub will move to Canada to work for Equinor. The rig recently completed a drilling campaign for Galp Energia in PEL83 offshore Namibia resulting in the Mopane discovery.

Mubadala Energy has announced “another substantial gas discovery” from the Tangkulo-1 exploration well, located in South Andaman, offshore Indonesia. Mubadala serves as the block operator with an 80% stake (Harbour Energy holds a 20% stake). Seadrill’s West Capella drillship drilled the well to a depth of 3,400 m. Back in December 2023, Mubadala Energy announced the Layaran-1 gas discovery in North Sumatra with the potential for over 6 tcf of gas-in-place.