March 3, 2025,
by
Dragana Nikše
An unnamed shopper of Fontis Holdings, a completely owned subsidiary of Bermuda-headquartered Paratus Power Companies, has opted for early termination of contracts for 2 jack-up rigs from its fleet.
On account of the early termination, the drilling contracts for the Brave and the Intrepid jack-up rigs will now expire on February 28, 2026, as a substitute of November 29, 2026, and Might 27, 2026, respectively. That is anticipated to cut back Fontis’ backlog to round $39 million, making up 3% of Paratus’ total $1.2 billion backlog.
The rigs have been constructed by Keppel, Brave in 2007, and Intrepid in 2008. Each characteristic the LeTourneau Tremendous 116C impartial leg cantilever design and are 74 meters lengthy and 62 meters large.
Whereas the shopper’s identify has not been disclosed, unfavorable contract phrases, akin to restricted suspension rights and indexation construction of day charges, and financial concerns have been cited as attainable causes by Paratus.
Moreover, the Bermuda-based participant believes that the termination might allow the shopper to raised align contractual phrases throughout its service suppliers subsequent 12 months however says there is no such thing as a motive to imagine that the motion was pushed by diminished operational want for drilling rigs in 2026.
Moreover, the shopper has no remaining contractual flexibility to additional shorten the contracts for any of Fontis’ rigs.
This follows the 78-day contract extension for the Oberon jack-up rig Fontis secured final week. The 2013-built rig of Friede & Goldman JU2000E design is 70 meters lengthy and 75 meters large.
Paratus presently has all its 11 belongings below contract, with 10 contracted into subsequent 12 months or past, and the vast majority of contracts extending to 2027 or 2028. Fontis’s five-rig fleet can be absolutely booked.
Final June, the holding firm disclosed its intention to listing the agency’s shares on the Euronext Development inventory alternate market in Oslo, Norway, adopted by a deliberate uplisting to the Oslo Inventory Change.