Shelf Drilling has reported an early termination for two of its rigs, both of which were contracted to Adnoc Drilling.
The terminations have hit the High Island VII and Compact Driller jack-ups. Now, the rigs will halt operations as of August 2021.
The original end dates for the High Island VII and Compact Driller were February 2023 and June 2022 respectively.
Adnoc Drilling had two one-year options for both rigs. The High Island VII had been planned to be out of service early in 2021.
Shelf now has no rigs under contract in the United Arab Emirates. The company said it had secured a three-year contract for the High Island VII in October 2019.
The drilling company announced a three-year contract for the Compact Driller in December 2018, with a planned start in the first half of 2019.
Shelf’s utilisation rate dropped to 72% in the third quarter of 2020, while the dayrate also fell. The company intends to deliver its fourth quarter results on March 1.
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