Oil & Gas

Chevron extends jack-up contract with Shelf Drilling

Shelf Drilling has extended a contract with Chevron in Angola for the Shelf Drilling Tenacious.

The drilling company said the jack-up would continue its current contract until November 2023. There is also an option for another year of work.

Shelf Drilling announced the original contract with Cabinda Gulf Oil Co. (Cabgoc) in June 2021. The Shelf Drilling Tenacious began the contract in January 2022 and it was due to end in January 2023.

CEO David Mullen, commenting in 2021, said the company would customise the Shelf Drilling Tenacious for work with Angola. This would include “enhanced offline capabilities”, the Shelf Drilling executive said, similar to the company’s rigs working for Chevron off Thailand.

Shelf Drilling did not disclose dayrates for the BMC Pacific 375 rig.

Earlier in November, in the company’s third quarter results, the drilling company said that jack-ups under contract globally were increasing.

As a result, it was “beginning to see strong upward dayrate momentum on new contracts”. Shelf Drilling reported its average dayrate in the third quarter was $62,000, with a utilisation rate of 85%.

In West Africa, the company noted that there were 13 jack-ups contracted, down from the 20 contracted at the peak of activity, in April 2014. The Middle East is a particularly strong market for shallow-water drilling at the moment.

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