Parker Drilling and Tyumen Oil Form Joint Venture

Parker Drilling Company and Russia's Tyumen Oil Company announced they have signed a joint venture agreement to provide contract-drilling services throughout Russia.

The joint venture's management team will focus on improving the safety, quality, cost-effectiveness and overall efficiency of Tyumen Oil's drilling. The team will introduce internationally accepted oil field practices to improve logistics and procurement procedures and enable upgrades to Tyumen Oil's drilling and workover rigs. Parker will manage the drilling, which will commence with five to 10 Tyumen Oil rigs at the giant Samotlor oil field in Western Siberia.

The companies did not disclose the financial terms of the contract.

"This is an excellent opportunity to further expand our international operations in a market yet to be tapped by Western drilling contractors," said Robert L. Parker Sr., chairman of Parker Drilling Company. "Tyumen Oil is among the top 15 largest private oil companies in the world. We expect a long and mutually beneficial relationship with Tyumen Oil." Tyumen Oil President and CEO Simon Kukes said, "Our association with Parker Drilling Company meets our objective of bringing Western-style drilling techniques and field management to Tyumen Oil's drilling activities. I am convinced that this strategy is the best way to increase the speed and productivity of our drilling."

Parker is moving personnel to Nizhnevartovsk, near the Samotlor field, in expectation of operations beginning in January 2002. Parker first worked in Russia in 1991 -- the first Western drilling contractor in the country.

The head of an organization promoting business between Russia and the United States hailed today's agreement as a sign of expanding bilateral ties. "This is a win-win for both Parker Drilling and Tyumen Oil and I wouldn't be a bit surprised if this was the beginning of a substantially larger relationship," said Eugene K. Lawson, president of the U.S.-Russia Business Council. "Moreover, this contract is an example of the increasingly close business ties developing between Russia and the United States, ties that the two countries' leaders are encouraging."