Multimillion-dollar drilling extension with Eni keeps Shelf Drilling rig busy in Italy

July 8, 2025, by Melisa Cavcic

UAE-headquartered offshore drilling contractor Shelf Drilling (SHLF) has got hold of a long-term contract extension for one of its jack-up rigs, enabling the unit to stay longer in Italian waters with Eni, the country’s energy giant.

Key Manhattan rig; Source: Shelf Drilling

The Key Manhattan jack-up rig, which has a years-long history of working with Eni, will remain with the Italian player for another year, thanks to the latest contract extension. This one-year extension will start in direct continuation of the rig’s current contract.

Shelf Drilling has revealed that the deal comes with a total added contract value of approximately $29 million. As a result, the rig is now committed until November 2026, with one year of additional options still at Eni’s disposal to prolong the assignment further.

The Key Manhattan rig is a 350-foot jack-up drilling unit of a Marathon LeTourneau 116-C design built in 1980 and upgraded in 2010. The rig began its contract with Eni off the coast of Italy in April 2016, but experienced a period of suspension in 2020 with a reduced day rate.

Greg O’Brien, Shelf Drilling’s CEO, commented: “This additional backlog creates further revenue and cash flow visibility for Shelf Drilling through 2026. We are very pleased to continue our long-standing collaboration with our customer with this contract extension.

“The Key Manhattan team has consistently delivered an outstanding safety and operational track record for over 15 years, and we remain committed to building on this performance and driving continuous improvement.”

Shelf Drilling has been a busy bee lately, as confirmed by its recent multi-year drilling assignment with India’s ONGC in the Mumbai High area and a five-year contract extension with Aramco in the Middle East.