Apache Contract Extension Could Be Worth $100MM



Apache Contract Extension Could Be Worth $100MM
Apache Corp. has awarded Archer a four-year contract extension for platform drilling and maintenance services.

Apache Corp. (NASDAQ: APA) has awarded Archer (FRA: 8SW1) a four-year contract extension for platform drilling and maintenance services in the U.K. North Sea, Archer reported Wednesday.

The extension goes into effect on Jan. 1, 2021, in direct continuation of the current contract, Archer noted in a written statement. The firm pointed out that it will provide services for the Beryl Alpha and Bravo and Forties Alpha, Bravo, Charlie and Delta platforms.

“We are very pleased to secure this contract extension which underlines Apache’s confidence in Archer’s capabilities in providing platform drilling and maintenance services on their assets,” remarked Archer CEO Dag Skindlo. “The extension strengthens our long-term business relationship with Apache, which dates back to 2004, and our position as a major provider of platform-based drilling and intervention solutions in the U.K.”

Archer noted the contract extension’s value could reach US$100 million, based on current and expected future activity including additional services through its Engineering, Rentals and Oiltools divisions.

“During these challenging times, the professionalism of our team has ensured safe and efficient services to Apache,” concluded Skindlo. “We firmly believe this contract win is a result of Archer’s continual commitment to provide operations with our experience and the right solutions to improve well delivery, integrity and performance.”

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