Westhill-based firm Awilco Drilling has announced a well decommissioning contract extension with Shell.

The initial contract for the WilPhoenix rig was for 18 wells and estimated at nearly £30 million.

The contract extension will see Awilco extend the decommissioning contract covering the abandonment of five further wells.

The contract will now run until last Q1 2020.

Awilco said options remain under the contract for two further abandonment wells and three exploration wells.

The company owns and operates two refurbished semi-submersible drilling rigs, WilPhoenix and WilHunter.

The Oslo-listed firm has also ordered one new build rig for drilling in harsh environments, including the Barents Sea.

While WilPhoenix has been booked by Shell, while WilHunter was cold stacked in Invergordon during the third quarter.