Shelf Drilling Ltd. has acquired notification from a Center Japanese buyer that the latter will droop the operations of 4 jack-up rigs.
Shelf Drilling stated in a media launch that it was in energetic discussions with the shopper to find out which rigs could be suspended and the precise timing of the suspensions. Nonetheless, the corporate stated that through the suspension interval, it could have the fitting to actively market the rigs to different prospects and alternatives.
Shelf Drilling is anticipating an affect on its monetary steerage issued in its report for the fourth quarter of 2023. As soon as it has the exact particulars on which rigs shall be suspended and the timing of the suspension, Shelf Drilling stated it is going to be capable of assess the affect and supply up to date steerage as a part of its reporting for the primary quarter of 2024.
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“We’re dissatisfied with the choice to droop 4 of our rigs, significantly in mild of the excellent working efficiency of our rigs and groups over a few years within the Center East. This current growth will create near-term challenges, however we stay optimistic on the long-term outlook for the enterprise. We’ve got a number one place in a number of areas and see alternatives throughout our geographic footprint for our fleet of rigs”, Shelf Drilling CEO David Mullen stated.
The corporate reported earlier in March it was anticipating 2024 EBITDA to land between $375 million and $420 million.
To contact the writer, electronic mail andreson.n.paul@gmail.com
