SPD Wins Sinochem UAE Contract
Atlantis Holdings Norway, a wholly owned Sinochem subsidiary, is implementing an offshore gas development and potential onshore exploration program in Umm Al Qaiwain in the northern UAE. Under the contract, valued at more than US$2 million, SPD will manage all aspects of drilling and completion operations, from contracting to well planning through to operations and supervision.
"We are delighted that SPD have won this contract and are looking forward to another strong performance from the team," said David Thorpe, operations manager with Atlantis. "At over $30 million the drilling and completions work on the UAQ development accounts for a significant portion of the project budget. SPD have shown their ability to control costs in the past and will be challenged to do so again, particularly in the face of the current overheated market."
Thorpe said that the the deep offshore and potential onshore wells associated with the project are technically challenging. "[They] may involve MPD (managed pressure drilling) operations in high H2S environments," he explained. "As such some of this work will be at the cutting edge of current technology."
The planning phase for the offshore work program will start immediately. The operational phase will commence in the second quarter of 2007 and will last approximately four months. The program will consist of well re-entries, tie-backs, high angle/horizontal drilling, completion, and stimulation in a deep, sour, high pressure, carbonate reservoir. Onshore operations are provisionally scheduled for late 2007.
"As the only independent well engineering company based in the UAE this is another significant contract for SPD, which builds on our continuing strong relationship with Atlantis," concluded Alistair Davidson, SPD's managing director. "We are committed to growth in the UAE and Middle East, and projects such as this help us further strengthen our technical expertise and expand our resource levels such that we can respond quickly to the demands of the rapidly expanding local market."