Jack-up Rig Utilization, Pricing to Hit Pre-pandemic Levels in 2022, Shelf Drilling CEO Says

OE Staff
Friday, May 13, 2022

Tendering activity for jack-up drilling rigs continues to improve, especially in the past two months, with global utilization expected to hit pre-pandemic levels in 2022.

This is according to David Mullen, CEO of shallow-water oil and gas drilling rig contractor Shelf Drilling, who shared his view on the offshore drilling market in Shelf Drilling's quarterly presentation on Thursday.

Shelf Drilling posted first-quarter revenues of $156.0 million, a 14.7% sequential increase compared to Q4 2021 and also an increase compared to the 1Q 2021 revenue of $136 million. The company’s net loss was $4.6 million.

Mullen said that the revenue bump was related to the start-up of three rig contracts in West Africa and India.

Mullen added: "Tendering and marketing activity in the jack-up sector continues to improve in all geographies where we operate, and we have seen an acceleration over the past two months.

Shelf Drilling CEO said that as of March 31, 2022, the company's contract backlog was $1.7 billion with 28 of our 30 rigs under contract, representing a marketed utilization of 93%.

"We anticipate that our recent contract awards coupled with other contracts and extensions that are in advanced discussions will drive a further increase in our backlog during the second quarter of 2022. The significant improvement in the commodity price backdrop, combined with our strong customer relationships and proven operating track record will position Shelf Drilling very well. We expect global jack-up utilization and pricing to surpass pre-pandemic levels during 2022," Mullen said.

According to global offshore drilling rig stats provided recently to Offshore Engineer by Wood Mackenzie, the global jack-up rig utilization in April was around 67%, with 294 jack-ups on a contract, and 146 available.

In the second quarter so far, Shelf Drilling has secured a three-year contract extension for the High Island V jack-up rig in Saudi Arabia until May 2025, an extension for the Key Singapore rig in India until May 2023, and a short term deal for the Shelf Drilling Scepter rig in Vietnam, scheduled to start in July.


Categories: Drilling Activity Drilling Rigs

Related Stories

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com