Shelf Drilling Wins Thailand Contract

Dubai-headquartered drilling contractor Shelf Drilling has secured a contract for its recently acquired jack-up rig, Shelf Drilling Enterprise, with Chevron Thailand Exploration and Production for operations in the Gulf of Thailand, it said January 14 in a statement.

The contract is expected to start in August 2020 and run through April 2022 with an option to extend. The contract value for the period, including mobilisation revenue, is $59mn, the company said. Including the purchase price, subsequent reactivation and contract-specific upgrades, the estimated all-in delivery cost of the rig is $81mn.

Shelf Drilling said it plans to initially fund the acquisition and deployment of the Shelf Drilling Enterprise by drawing on its revolving credit facility and cash on hand and expects to access long term debt financing to replenish liquidity.