UAE-based jackup rig operator Shelf Drilling has secured a contract for its recently acquired jackup rig Shelf Drilling Enterprise with Chevron Thailand for operations in the Gulf of Thailand.
The contract is expected to commence in August and run through April 2022, with an option to extend. The contract value for the firm period is $59m.
Shelf Drilling plans to initially fund the acquisition and deployment of the rig by drawing on its revolving credit facility and cash on hand, and it expects to access long-term debt financing to replenish liquidity.
“We are excited to further expand our business with Chevron and operations in the Gulf of Thailand. The contract award reconfirms the operating capabilities of the entire team at Shelf Drilling and our ability to deliver value to our customers. We believe our latest rig acquisition and underlying contract demonstrate our disciplined approach to capital spending and our focus on generating returns for our investors,” said David Mullen, CEO of Shelf Drilling.
Shelf Drilling currently operates a fleet of 38 jackup rigs.