Offshore driller Shelf Drilling is set to expand its fleet with three jack-up rigs.
The company, one of the world’s largest jack-up rig contractors, has decided to conduct a private placement of new common shares, aiming to raise $250 million, to be used for fleet expansion.
Shelf has entered into letters of intent to acquire three premium jack-up drilling rigs from an unnamed third party for $225 million.
According to Shelf, the acquisition remains subject to execution of a mutually agreed sale and purchase agreement, board approvals from both parties, and confirmation that the required financial structure is in place no later than April 30, 2017, which is intended to be met through the privateplacement.
“The acquired rigs all have a reputable operating history in Shelf Drilling’s key markets and will strengthen the group’s leading position there. The acquisition will further strengthen the group’s fleet and fortify the group’s position as a globally leading jack-up contractor. The group’s total jack-up rig count will increase from 36 rigs to 39 jack-up drilling rigs,” Shelf said.
Earlier this month, Shelf took delivery of its second newbuild jack-up rig – Shelf Drilling Krathong (SDK). The rig will be used by Chevron in Thailand, under a five-year contract awarded in 2014.
Offshore Energy Today Staff