Yesterday Shelf Drilling has entered into agreements with affiliates of China Merchants & Great Wall Ocean Strategy & Technology Fund regarding the acquisition of two newbuild premium jack-up rigs (CJ46) for a purchase price of USD 87 million per rig and Bareboat charters of, and the option to buy, two additional CJ46 jack-up rigs.
David Mullen, Chief Executive Officer, Shelf Drilling, said: “We consider this a transformational transaction for the Company. The acquisition of two premium jack-up rigs and the option to buy two further premium jack-up rigs will significantly enhance our fleet at an attractive price and an appropriate funding structure demonstrating our focus on capital discipline. We believe that the combination of Shelf Drilling’s unique operating platform, low cost structure and customer relationships, along with China Merchants’ demonstrated rig construction capabilities will create compelling value for all our stakeholders. We look forward to working with China Merchants as a strategic partner.”