Shelf Drilling fixes five-year jack-up extension deal with Aramco

Dubai-headquartered Shelf Drilling has secured a five-year extension for its High Island V jack-up rig.

The extension is in direct continuation of the rig’s current contract with the same customer, extending the commitment until July 2030. The total added contract value is approximately US$133M.

"We are very pleased to announce this five-year extension of the contract for High Island V. The contract extension reflects our client’s recognition of the High Island V team’s outstanding safety and operational track record over more than 10 years. We are proud of this performance and remain committed to delivering safe and reliable operations for our customer," Shelf Drilling chief executive Greg O’Brien said.

"The Middle East continues to represent an important part of our business, and we look forward to maintaining a long-term presence in the region."

Jack-up operations specialist Shelf Drilling was caught up in the sudden announcement from Aramco in January 2024 that Aramco would be 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. The pause resulted in suspension notices for as many as 18 jack-up rigs, including four of Shelf Drilling’s rigs.

By May 2024, Shelf Drilling had found takers for three of its Aramco-suspended rigs.

Shelf Drilling is an international shallow water offshore drilling contractor with rig operations across the Middle East, southeast Asia, India, West Africa, the Mediterranean and the North Sea. The company was founded in 2012.