Parker Drilling Lands Six Rig Deals
Parker Drilling Company has been awarded new contracts for six of the Company's international land rigs to certain subsidiaries operating in Libya, Mexico and Kazakhstan. Of the six rigs fulfilling these contracts, five are mobilizing from inactive status.
"Winning these new contracts proves our business strategy for growth is working. These rigs are going to work at stronger rates than those we experienced last year. National oil companies and the majors need the preferred drilling solutions Parker delivers and these awards demonstrate the value of our competitive advantage," said Robert L. Parker Jr., chairman, president and chief executive officer.
Parker Drilling was awarded a three rig, three-year contract for land drilling services in southern Mexico. Parker rigs 165, 221 and 256 are expected to begin operations in May 2007. Rigs 165 and 221 are mobilizing from an inactive status after completing their previous drilling program in Mexico in May 2006 and December 2005. Rig 256 is operating in south Texas and will mobilize upon completion of its current well.
The company is also entering a new international market with the award of a one-rig, three-year sub-contract by the National Oil Well Drilling and Workover Company, the national oil company of Libya ("NWD"), pursuant to NWD's principal contract with Woodside Energy (N.A.) Ltd. Parker will utilize land rig 121, which is mobilizing from an inactive status after completing its previous drilling program in Mexico in July 2006.
Additionally, the Company was awarded a two rig, three-year contract for operations in Kazakhstan's Karachaganak Field. Land rigs 258 and 249 are also mobilizing from an inactive status after completing drilling programs in the Tengiz Field in March and October, 2006. This contract will increase the number of Parker rigs operating in this field from two to four, and will extend the term of the two existing rigs under contract for an additional three years.
"We have a long and successful history of operating in Kazakhstan, an established track record in Mexico, and believe the Libyan market holds significant potential for sustained growth in the near future," Parker further said. "These new contracts will help us increase international rig utilization and strengthen our competitive position in these key markets."