Boots & Coots Signs $21M Deal with Sonatrach
Boots & Coots has signed a two year contract with Algeria's national oil company, Sonatrach, to provide hydraulic workover/snubbing services, training and other ancillary services. The contract, valued at $21 million, is in addition to the Company's existing contracts in Algeria.
"Algeria has been a great growth story for Boots & Coots, and we believe we have similar growth opportunities as we establish strategic footholds with one or two offerings, and then add on other service offerings." said Jerry Winchester, president and chief executive officer. "Our SafeGuard work has grown from an initial two-year contract worth $1.5 million in 2001 to two five year contracts worth an aggregate of $35 million. Now we've added to our existing hydraulic workover services an additional $21 million in revenues over the next two years. In Algeria we expect to generate well intervention revenues of approximately $30 million in 2008, compared to $18 million in 2006."
The new contract includes the deployment of two hydraulic workover units, a 150K unit and a 340K unit. Boots & Coots expects to initiate operations under the contract by the end of the year.
- Algeria Sends More Oil To Cuba As Venezuelan Supplies Fall (Jan 10)
- Algeria's Shale Gas Plans Will Take Time, Require Tough Reforms (Dec 29)
- Algeria's Sonatrach Chief Urges Oil Industry Reforms (Sep 18)
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