Parker Drilling Inks JV for Work in Saudi Arabia
Parker Drilling and Abdullah Rasheed Al-Rushaid Company for Drilling Oil and Gas Limited have formed a joint venture company which will perform four drilling contracts, each with a term of three years with a one year option, awarded by Saudi Aramco. The joint venture, Al-Rushaid Parker Drilling LLC, is a Saudi Arabian limited liability company in which Parker and Al-Rushaid will each own a 50% interest. These contracts represent Parker's first entry into the Saudi Arabian land drilling market.
Al-Rushaid Parker Drilling LLC, will utilize new build rigs to perform the contracts, with the first rig scheduled to arrive on location in Saudi Arabia in the third quarter of 2006, and the three remaining rigs to be delivered in the fourth quarter of 2006. Al-Rushaid Parker Drilling LLC has obtained asset- based financing to fund a substantial portion of the acquisition costs of the four new land rigs, with the balance of the acquisition cost, estimated at $20 million, funded equally by capital contributions of the joint venture partners.
"This project is in line with our stated objective of seeking new growth opportunities in targeted markets with acceptable rates of return," said Robert L. Parker, Jr., president and chief executive officer of Parker Drilling. "Although the financial impact to Parker should be minimal during initial years of the project, this market offers excellent opportunities for sustained growth for many years to come."
Abdullah Rasheed Al-Rushaid Company for Drilling Oil and Gas Limited is a
subsidiary of Al-Rushaid Investment Company, which is a large well-diversified
group with major operations in the oil and gas industry in Saudi Arabia.
Manages 17 Offshore Rigs
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Company: Abdullah Rasheed Al-Rushaid Company more info
- Parker Drilling Inks JV for Work in Saudi Arabia (Feb 16)