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July 3, 2018

Shelf Drilling to acquire Ocean Scepter jack-up drilling rig

Shelf Drilling has signed a definitive agreement to acquire Ocean Scepter jack-up drilling rig from the subsidiaries of Diamond Offshore.

Shelf Drilling has signed a definitive agreement to acquire Ocean Scepter jack-up drilling rig from the subsidiaries of Diamond Offshore.

The acquisition of the drilling rig is expected to cost nearly $90m including expected costs for planned reactivation and rig mobilisation costs.

Developed in 2008, the Ocean Scepter drilling rig exhibits KFELS Mod Super B design, which is consistent with Shelf Drilling’s acquisition strategy.

Currently, it is located in the US Gulf of Mexico and will be mobilised to the Middle East region upon delivery, expected in the third quarter of this year.

It will also increase Shelf’s total shallow water rig count in the region to 40 units.

"The acquisition included the West Resolute (Marathon LeTourneau Super 116-C), West Triton (Baker Marine Class 375) and West Mischief (Marathon LeTourneau Super 116-E)."

The company is planning to finance the purchase utilising the Initial Public Offering (IPO) proceeds and available cash on hand.

The acquisition is subject to customary closing conditions.

Established in 2012 and headquartered in Dubai, Shelf Drilling provides offshore drilling services globally. Currently, it is engaged in rig operations across Middle East, West Africa, India, Southeast Asia and the Mediterranean.

Last year, Shelf Drilling acquired three jack-up rigs from Seadrill for nearly $225m.

The acquisition included the West Resolute (Marathon LeTourneau Super 116-C), West Triton (Baker Marine Class 375) and West Mischief (Marathon LeTourneau Super 116-E).

The company closed the acquisition and delivery of the West Resolute and the West Triton rigs in May, while the third and last jack-up drilling rig, the West Mischief, was delivered in September last year.

This acquisition of the three rigs was financed through a private placement of new Shelf Drilling common shares.

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