(MENAFN- The Peninsula) Gulf Drilling International (GDI), a subsidiary of Gulf International Services (GIS), the largest oilfield service company in Qatar, announced to have inked several contracts worth QR5.2bn (about $1.43bn) with Qatar Petroleum (QP).
A press statement issued yesterday said that these contracts include four new contracts and four contract extensions with QP for the provision of drilling rig services, each having a term of five years.
The new contracts have been concluded for the provision of two new offshore drilling rigs "Dukhan" and "Halul" and two new land rigs GDI-7 and GDI-8; while contract extensions allow the continuation of services performed by four land rigs GDI-1, GDI-2, GDI-3 and GDI-4. The awarding of these contracts was announced in previous reports.
The contracts were signed by the Minister of Energy and Industry and the Chairman and Managing Director of QP, H E Dr Mohammed bin Saleh Al Sada, and Ibrahim J Al Othman, the CEO of GDI. It the ceremony was attended by Saad Sherida Al Kaabi, Director of Oil and Gas Ventures at QP.
The new contracts will allow continuing, as well as expanding, the important development work Qatar Petroleum is undertaking. Each of the contracted rigs is being customised to meet the best in class criteria specified by Qatar Petroleum."
The Minister praised the high quality of services provided by GDI, and the level of commitment and dedication it has demonstrated to achieve its challenging goals.
Al Othman took the opportunity to express gratitude and appreciation of the Minister, and the GDI Board of Directors for their continuous support and guidance.
He said: "GDI fully appreciates the value of the partnership that has been developed with QP," adding "These contracts will positively impact our revenue growth immediately which will positively reflect on our profitability for this year and the next five years. Furthermore, the addition of a new offshore rig for QP "Halul" in 2016 will greatly support our long term revenue growth plans."
By mid-2016, GDI will have a total of eighteen drilling rigs, in addition to one accommodation jack-up and two liftboats.
The new offshore drilling rig "Halul" is currently being built to the proven Mod VB Bigfoot design, similar to the recently delivered rig "Dukhan." These rigs are expected to be placed into service in Q-4 of 2014 and Q2 of 2016, respectively.
These offshore rigs will be the newest rigs in GDI's fleet. Each rig will come complete with a centrifuge system for solids control, extra bulk hoppers on deck, 7,500 psi mud pumps, a 15,000 psi choke manifold, 150 man accommodation, 10,000 HP power packages, off-line building stands, and a 75 foot cantilever outreach.
The two new land rigs are currently under construction in the USA. GDI-7 will be a 1500HP rig while GDI-8 will be a 3000HP rig, making it the biggest land rig in GDI's fleet. The bigger rig will provide GDI with the capability of drilling deeper wells and executing extended reach wells to a much greater depth.
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