Parker Drilling Awarded Sakhalin Drilling Project

Parker Drilling Company has been awarded new contracts to build and operate a rig to drill extended reach wells to offshore targets from a land-based location on Sakhalin Island, Russia. This world-class project is being developed by an international consortium, of which Exxon Neftegas Limited is the operator.

The drilling project includes two contracts: one Parker subsidiary will design and build the rig and transport it to Russia, and another will operate the rig after its arrival on Sakhalin Island. Construction of the rig is expected to be completed by mid-year 2002.

"This is an exciting new venture for our company, allowing us to showcase our rig engineering expertise while we continue to expand our worldwide operations presence. The rig will be purchased by the Sakhalin I Consortium, in line with our stated 2002 goal of limiting our capital expenditures in the interest of reducing current debt levels," said Robert L. Parker Jr., President and CEO of Parker Drilling Company. "The new Sakhalin rig, engineered exclusively for this project, will be the most sophisticated land drilling rig in the world, designed to withstand earthquakes and operate in the frigid winters where ice covers the Sea of Okhotsk for six months of the year."

Parker Drilling is committed to maximizing Russian sub-contracting and employment from the Sakhalin Oblast and mainland Russia throughout its operations, including office staff and rig crew members.

"This is consistent with our operations around the world," Parker said. "By employing local citizens everywhere we operate, the local economies benefit from higher employment and good-paying jobs, and our company benefits from their knowledge of the region."