MIS Receives Second Refurbishment Contract from Arabian Drilling

MIS has been awarded the rig refurbishment contract of Arabian Drilling's AD-8 rig without tender. The first part of the contract for new leg sections is scheduled to start in January and be completed within June 2007. This part of the contract has a value of $ 4.3 million. Further extensive work is expected to be agreed following the inspection of the rig upon arrival at the MIS yard.

MIS has received purchase orders for rig refurbishment for Arabian Drilling's AD-8 rig. Beginning in early December 2006 through early January 2007, MIS undertook and completed another rig refurbishment on Arabian Drilling's AD-22 rig for approximately $1.6 million. This job was completed on time and to the satisfaction of Arabian Drilling. The new award without tender, for the supply and replacement installation of corroded leg sections on the AD-8 is an immediate start project. MIS will procure and fabricate the new leg sections which are scheduled for installation in the May-June 2007 time period. The value of the orders for this job is $4.3 million. Extensive other works for the AD-8 are also scheduled for the shipyard visit which will be finalized after the rig surveys are completed before or after the arrival of the rig. The contract value and scope for this work will be agreed following the survey.

Jerry Smith, MIS Managing Director stated, "Arabian Drilling is one of the most important clients of MIS for rig refurbishment and we are happy to receive this order to continue our relationship. The rig refurbishment market is very strong this year due to the large amount of rigs in the area that are 25 to 30 years old. MIS believes that the rig refurbishment market will remain strong for several years due to the increase in drilling activity. We believe that the drilling activity will continue to increase as the big producers in the Gulf and India will continue to increase their drilling programs without being affected from the rise or fall in crude oil prices".

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