Asia Offshore Drilling Limited (AOD) is an oil drilling company created in 2010 by Mermaid Maritime Public Company Limited. Oil drilling can take place onshore or offshore, which basically means on land or under the sea. AOD focuses on offshore drilling, or drilling in the ocean. If you’re curious to learn more about what offshore drilling means, check out the embedded PDF for additional information.
Based out of Bermuda, the drilling company is a subsidiary of Seadrill, which takes care of the construction supervision, commercial management and project management of all jack-up rigs to be used by AOD. Joey Horn had the privilege of working for this company as an independent director in 2011-2012. Previously, Horn had worked for the founding company, Mermaid Maritime Public Company Ltd., when she lived in Singapore.
The first two jack-ups, AOD I and AOD II, were finished by 2013 and sent to work in Saudi Arabia, following which the AOD III was also completed and sent there to work as well. The jack-ups were created by a builder based in Singapore: Keppel FELS Ltd. Each of the rigs has a water depth capacity of 400 feet. This means the fleet of rigs can drill in water that’s up to 400 feet deep. The rigs are also capable of drilling to a depth of up to 30,000 feet and accommodating 150 people. Learn more about the industry and how incredible oil rigs are by checking out the attached infographic.
Since building the rigs, AOD has been hard at work on its contract with Aramco in Saudi-based waters. The CEO of Mermaid reported that AOD was created in anticipation of a market upswing in the oil and gas sector, which proved to be accurate as of 2013. In addition, at the time the company was created there was an increasing demand for newly-made, modern jack-up rigs. Yet not enough were being funded and created, even though the supply of these rigs at the time was less than the demand. Due to these factors, it’s clear why the company has yet to face contract shortages for any of its three rigs.
Asia Offshore Limited Drilling, in addition to working in the Middle East, is open to working in other offshore drilling areas. Some of the regions the company has in mind include the Gulf of Mexico, the southern North Sea, India, New Zealand, Australia, the Indian Ocean, and Southeast Asia.
The Future of Asia Offshore Drilling Limited
The good news for AOD is that the company is focused on jack-ups rather than floaters. The company currently owns and operates three jack-up rigs, which are currently performing better in the rig contracts this year. Recent trends show that that jack-ups achieve the majority of contracts in the industry, nabbing over 75% of contracts in December 2016. The rest of the contracts were awarded to floaters. In addition, terms for jack-up contracts are longer than floater contracts.
You can see what the company is working on at the moment by watching the embedded video. For now, contracts are secured for a few more years. However, as mentioned above, AOD is hopeful to secure contracts and explore oil drilling opportunities in regions of the world other than the Middle East.
The arrangement AOD offers is particularly attractive for clients as the company has the support of Mermaid Maritime, which can help with additional services such as diving through support vessels, specialised equipment and diving to projects. Currently, Mermaid is providing this service to the AOD I and AOD II contracts.
Only time will tell what the future holds for this company. The company’s leadership, however, is optimistic about the opportunities that lie ahead.