Shelf Drilling targets Southeast Asia as key growth area

Posted on 24 July 2013

web_Key-Gibraltar

Shelf Drilling’s Key Gibraltar (above) and Compact Driller jackups (below, middle) are currently operating for Chevron Thailand while the Harvey H. Ward (below, bottom) jackup is working for Pertamina Indonesia.

By Astrid Wynne, contributing editor

When it was incorporated in late 2012, Shelf Drilling had a fleet of 38 rigs, acquired from Transocean, with 31 of them in operation. By the end of this year, the company will have 34 rigs in operation, with four stacked units scheduled for upgrades and reactivation. “We anticipate starting a newbuild program in 2014. Two of the four countries we are targeting as part of this growth are in Southeast Asia. We see compelling opportunities in Indonesia and Vietnam, as well as Saudi Arabia and the UAE,” CEO David Mullen told Drilling Contractor.

As of 15 July, 11 of Shelf Drilling’s 33 active rigs were drilling in Southeast Asia – four in Indonesia, three in Thailand, two in Malaysia, and one each in Myanmar and Vietnam. The company notes that it is looking to make a strategic shift by adding one or two rigs to the Vietnamese and Malaysian markets, establishing a more sustained presence in Indonesia and Myanmar, and slightly reduce its presence in Thailand.

web_Compact-Driller_Photo01“We see considerable near-term demand in Vietnam and Indonesia. Indonesia is becoming increasingly active as the country seeks to increase production and balance the increasing consumer demand to sustain the high level of economic performance over the past few years,” Mr Mullen explained. “We also expect an increase in activity in Malaysia as Petronas seeks to improve recovery from existing near-shore fields through enhanced oil recovery (EOR) techniques, using the existing developed well infrastructure in the petroleum provinces of East and West Malaysia. This will provoke incremental activity.”

web_HHW-010Shelf Drilling currently operates under several contracts inherited from Transocean; however, it recently signed several contracts as well. This includes a five-year contract with Saudi Aramco, a three-year contract with Maersk Oil in Qatar, a one-year contract with a consortium of operators in Indonesia, a one-year contract for three rigs operating in Egypt with Petrobel, and a minimum one-year contract with PVEP POC in Vietnam. Opportunities are also being sought for four stacked rigs – two in Malaysia and one each in Dubai and Egypt.

 

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 17 December 2014

    Saudi Aramco: Four factors for a sustainable drilling business

    Despite the modest growth in demand and drop in oil prices today, the long-term outlook for industry is healthy. “Our industry will need to add around 40 million bbl per day for new capacity...

  • 16 December 2014

    Ensco development program produces driller in 3 years

    Ensco’s Accelerated Development Program (ADP) takes a “green” individual and, within a three-year period, trains them to become a driller. In response to personnel shortages in various areas, including drilling...

  • 16 December 2014

    Saudi Aramco: ‘Industry cannot afford to lose talent when the economy is down’

    Industry is facing a human resources challenge in two areas: the ageing workforce and the shortage of skills, Mohammed Al Sellemi...

  • 16 December 2014

    Nanotechnology has potential to improve tool performance in extreme environments

    In terms of temperature stability and corrosion, tools have limitations, especially in extremely challenging drilling environments. Jothibasu Ramasamy...

  • 16 December 2014

    Colville: WCI provides forum to evaluate practical, economical advances in well control practices

    Major players throughout industry are joining forces under the Well Control Institute (WCI). The mandate of WCI is “to provide the definitive forum...

  • Read more news