Maersk Drilling gets long-term extension for jack-up with Shell in Brunei

Offshore drilling company Maersk Drilling has secured a 20-month extension for the Maersk Convincer jack-up rig with Brunei Shell Petroleum Company.

Maersk Drilling said on Monday that Shell’s Brunei subsidiary exercised the contract extension option for the Maersk Convincer that allows the rig to continue operating offshore Brunei.

According to the company, the extension has an expected duration of 602 days and will start in May 2021 in direct continuation of the rig’s current work scope, which means that Maersk Convincer is now contracted by Shell until the end of 2022.

The extension has a firm contract value of approximately $47 million, excluding a potential performance bonus.

Morten Kelstrup COO of Maersk Drilling said: “We’re delighted to firm up this long-term extension for Maersk Convincer which is a confirmation of the strong and productive collaboration that has been established between the customer and the rig team.

“The rig has, again and again, delivered brilliant operational excellence for BSP [Shell’s Brunei subsidiary], including a strong focus on safety and successful efforts to reduce fuel consumption and thereby limit the rig’s carbon footprint. We look forward to continuing this outstanding partnership”.

As for the rig, Maersk Convincer is a Baker Pacific Class 375 cantilever jack-up designed for year-round operation which was delivered in 2008.

The rig is currently operating on the Seria field offshore Brunei and was named the Jack-up Rig of the Year by Shell in both 2018 and 2019.

It is worth noting that this extension is a second one for the Maersk Convincer. Namely, Maersk Drilling secured the first contract extension for the jack-up in Brunei back in June 2018.

At the time, the contract for the rig was extended for 912 days with up to three years of options. The contract extension started in November 2018, in direct continuation of the current contract.

The Maersk Convincer started working for Shell in Brunei in June 2017 after it took the contract over from its sister rig the Maersk Completer. Before it handed the deal over, the Maersk Completer worked for Shell in Brunei since November 2008.