GDI signs rigs extension contract with QP

gis-gdiGulf Drilling International (GDI), wholly-owned subsidiary of Gulf International Services (GIS), has announced the extension of four rig contracts with Qatar Petroleum (QP) for five years

The provision for the onshore rigs — GDI-1, GDI-2, GDI-3 and GDI-4 — will be extended with effect from Q2 2014. The cumulative value of these contract extensions is US$439mn, the company said.

These rigs have been working exclusively for QP in the Dukhan oilfields since they were first acquired. The 1500HP rigs — GDI-1, GDI-2 and GDI-4 — had commenced operations in 2004, 2005 and 2006 respectively, while the 1000HP GDI-3 rig began operating in 2008. The four rigs have reportedly combined to drill 172 wells, equating to 518,160 metres of hole drilled, and have worked-over an additional 279 wells.

GDI is now in the process of upgrading the equipment that is installed on these rigs,which will now include high volume centrifuges, larger power packages, shale shakers and additional camp accommodations to ensure top quality performance and QP satisfaction.

Ibrahim J. Al-Othman, CEO of GDI, said, “The four contract extensions marks the third significant transaction that GDI has concluded with QP this year. The two previous transactions were the awarding of new contracts of five years each for two new land rigs (GDI-7 and GDI-8) and a new jack-up rig (Dukhan).

“I am pleased to have successfully secured these contracts at this time as they will positively impact our financial results starting this quarter and continue for the next five years.”

The GIS had recently brought Gulf Drilling International (GDI) completely by buying Japan Drilling Company Limited (JDC) 30 per cent stake for US$157.7mn.

Ebrahim Al-Mannai, chief coordinator of GIS, said, “GIS is pleased to have concluded the purchase of JDC’s 30 per cent stake at a price that was under the expected price of US$160mn and looked forward to reaping the benefits of holding a 100 per cent share of this up and coming company.”

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