Maersk Oil Qatar Hires GDI’s New Jack-Up Rig for $211 Mln

Maersk Oil Qatar and Gulf Drilling International (“GDI”) have signed a four year agreement for 770 million Qatari Riyal (approximately $211 mln) under which Maersk Oil Qatar will contract the Al Jassra, GDI’s new-build jack-up drilling rig.

The contract covers drilling and well work-over activity in the Al Shaheen field, Qatar’s largest offshore oil field. The agreement was signed by Maersk Oil Qatar’s Managing Director Lewis Affleck, and GDI’s Chief Executive Officer, Ibrahim J. Al-Othman.

Lewis Affleck, Maersk Oil Qatar’s Managing Director said: “By working closely with our partner Qatar Petroleum, Maersk Oil has started to unlock the significant potential of the Al Shaheen oil field. We have already drilled in excess of 300 wells, and we expect to drill many more in the years ahead to optimise recovery from this giant offshore oil field. We are very pleased that a Qatari based drilling company is able to provide the world-class drilling support that we currently require – and we very much look forward to working with GDI.”

The Al Jassra will be one of the drilling rigs used to deliver Maersk Oil’s latest field development plan, FDP 2012, which was agreed in November 2012 and calls for the drilling of 51 new wells in the Al Shaheen oil field.

Ibrahim J. Al-Othman, GDI’s Chief Executive Officer said: “Today’s signing signifies an important milestone for GDI. The Al Shaheen field is Qatar’s largest offshore oil field, and we are very proud to provide an essential role in the field’s future development. Both companies have worked tirelessly to ensure that a credible, economic and sustainable drilling rig solution is delivered. Maersk have been instrumental in providing valuable input into the development of the specifications, design preferences and features of this new rig. In the process, we have cultivated an excellent working relationship that is focused on mutually beneficial results. We are pleased that Maersk Oil is committed to using the services of Qatari based drilling company and to supporting the country’s national vision of building local capacities and developing Qatari skills and competencies.”

The state-of-the-art Al Jassra rig is a Pacific Class 400 jack-up drilling rig. The rig will come with a 75’ cantilever outreach and provide accommodation for 150 persons. It will provide the capacity and ability to drill the extended reach wells that are needed to access the long thin reservoirs of the Al Shaheen field.

The Al Jassra rig is currently under construction at PPL shipyard in Singapore. Following commissioning and dry tow, the rig is expected to arrive in Qatar mid-year, 2013. Both Maersk Oil Qatar and GDI teams are energetically working to ensure that the rig enters operation safely and efficiently.

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Press Release, February 19, 2013