Savanna to build four drilling rigs for Qld LNG project

Savanna Energy Services said it has signed a contract to expand its drilling operations in Australia.

Savanna will deploy four Top Drive Single (TDS) drilling rigs to operate in Queensland for an existing customer to support their east coast LNG project, it said in a statement.

The new design TDS 2000 and TDS 3000 rigs are under multi-year take-or-pay contracts with the first rig expected to begin operations in Q1 2016. The capital cost of the four new TDS drilling rigs will be allocated to Savanna’s 2015 and 2016 capital programs, and will aggregate $63.4 million.

Currently, Savanna has five drilling rigs and five workover rigs operating in Australia. Savanna is in the process of deploying four additional workover rigs and three flush-by units under long-term take-or-pay contracts. These new builds will be operational by Q1 2015 with the majority of the rigs in the field by year-end 2014.

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Press Release; Image: Savanna Energy Services