Shelf Drilling shelves plans for flotation

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Oil rig contractor Shelf Drilling has scrapped plans for a flotation in London, blaming “challenging” market conditions.

The Dubai-based firm, created in 2012, has a fleet of 37 jack-up rigs and focuses on shallow waters, which it says account for more than 85 per cent of global offshore oil and gas production.

Shelf had been hoping to raise $250 million (£146m) through the issue of new shares to reduce its debts, but said the float had been cancelled “due to challenging public market conditions despite a positive response from prospective investors to the company, its strategy and operations”.

It added: “The outlook for Shelf Drilling’s business continues to be positive, underpinned by a contracted backlog of $3.4 billion as at 27 May, with an average remaining duration of 758 days per contracted rig.”