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

  • 21 October 2014

    IADC Cybersecurity Task Group to provide industry guidance to assess risks

    The oil and gas industry is not immune to cybersecurity threats, from computer viruses and malware to targeted attacks. The IADC Advanced Rig Technology (ART) Committee…

  • 21 October 2014

    Check-6 launches RIGOR digital checklist and compliance system

    Check-6 has launched RIGOR, a checklist-based mobile app to help simplify complex procedures and mitigate human error on the rig. Taking lessons from the aviation industry…

  • 21 October 2014

    Video: Next IADC Land Contract update to start in 2016

    The latest version of the IADC Land Contract was released in November 2013. Various incidents, including Macondo, delayed the release. “It’s an industry contract…

  • 21 October 2014

    Moomjian: ‘Honesty is the best policy in doing business’

    With more than 35 years in industry, Cary Moomjian, President of CAM OilServ Advisors, has seen the industry come a long way in terms of compliance and business ethics...

  • 21 October 2014

    Video: Companies prepare for EU Offshore Safety Directive compliance

    Earlier this year, Sir Ian Wood released a report on maximizing recovery from the UK Continental Shelf and recommended a new independent regulator to focus more on licensing…

  • Read more news