Forbes Energy Services Ltd. announced that a joint venture between the Company and Merco Ingenieria Industrial S.A. de C.V. has executed a 24-month contract with Pemex Exploracion y Produccion, a subsidiary of Petroleos Mexicanos (Pemex), to provide construction, workover and maintenance services to existing wells in Mexico.
Under the terms of the initial $72 million contract, Forbes Energy agreed to provide four rigs, and granted Pemex Exploracion y Produccion the option for three more rigs. Since execution of the contract, Forbes has received notification from Pemex requesting two additional rigs, which will ultimately increase the total value of the contract. Under the joint venture agreement, Merco will provide construction services and Forbes Energy will provide workover and maintenance services. The Company's interest in the joint venture is 50%.
John Crisp, President and CEO, stated, "We are excited about our new relationship with Pemex and the opportunity to expand our business model south of the U.S. border. We are also proud to partner with Merco, who has a seven year operating history working for PEMEX and other major oil & gas companies in Mexico. We at Forbes believe that with our new, modern equipment and experienced employees, completion of this initial project will open the door to additional opportunities to work with both of these companies in the future."
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