Jackup Charter Extension Locks Rig Work to 2030
Offshore drilling service providers will see long-term contracted demand for existing jackup rigs as new supply stays limited.
Updated on Nov. 2, 2026 in Oil and Gas
RigCo, an indirect Keppel subsidiary, has secured a five-year bareboat charter extension for its AD110 jackup rig with Arabian Drilling Company. The rig, which is working in Saudi Arabia for Arabian Drilling Company's client, continues a prior contract.
Why it matters
Jackup utilization and dayrates have stayed solid since 2022, and there is very little new jackup supply under construction, which supports the continued deployment of existing rigs under long-term charters. For operators in the offshore drilling supply chain, the extension signals that contracted demand for existing rigs in the Gulf region is holding steady.
The extension runs about five years, covering 2026 to 2030, for a single AD110 jackup rig. No dayrate or fleet-wide utilization figures were disclosed in the announcement.
The players
RigCo
Rigco Holding, an indirect Keppel subsidiary, operates in the offshore drilling rig charter market, leasing jackup rigs to drilling contractors.
Keppel
Keppel is a Singapore-based conglomerate whose offshore and marine division builds and manages offshore drilling assets, including the parent group of RigCo.
Arabian Drilling Company
Arabian Drilling Company is a Saudi drilling contractor that operates rigs for oil and gas clients in the Kingdom.
The details
A bareboat charter leases a rig without crew or operating services, so the charterer takes on operational responsibility for the vessel during the term. The extension continues the AD110's prior contract directly rather than starting a new engagement, which keeps the rig working for Arabian Drilling Company's client in Saudi Arabia without a gap in deployment. Because the rig was among those deployed under bareboat arrangements secured in 2022, the extension shows the same structure being renewed for a longer term.
Timeline
2022: AD110 deployed to Saudi Arabia under bareboat charter arrangements.
2026 to 2030: Bareboat charter extension term of about five years.
Market Landscape
Jackup demand has remained firm since 2022, and very little new jackup supply is under construction, which limits the arrival of competing rigs. That supply constraint favors owners and charterers who keep existing rigs under contract, as this extension does for the AD110.
Operators in offshore drilling services should note that long-term charter renewals for existing jackups are a route to sustained contracted revenue in a market with limited new supply. Procurement and contract teams reviewing rig-related commitments may want to track how renewal terms and dayrates evolve as current contracts expire.
The takeaway
Long-term charter renewals for existing jackups are one way contracted revenue is being sustained in a market with little new supply. Businesses in the offshore services chain should track dayrate and renewal terms as other rig contracts come up for extension.
Further reading
For broader context on how offshore rig contracting shapes drilling capacity, explore Oil and Gas coverage.
