PGS & Halliburton Team Up on Norwegian Continental Shelf

PGS through its subsidiary Pertra AS, has entered into an agreement with Halliburton Norway for services in connection with drilling and completion of a production well in Production License 038 (Varg field) in the North Sea. The contract comprises a complete delivery of drilling and completion services.

This is one of the very first contracts in the North Sea whereby a service provider performs all the drilling and completion services. Halliburton and Pertra have for some time cooperated on the planning of the technical details and operational aspects of the drilling operation.

This is an untraditional contract in that Halliburton is compensated partly by means of fixed-price elements and partly by the results of the work.

The well is to be drilled by Maersk Contractors Norway using the "Maersk Gallant", beginning in December this year. This is one of several undertakings initiated by Pertra to increase the oil production on Varg, which initially was planned shut down in the summer of 2002. The company is the operator of Production License 038. The owners of Production License 038 are Pertra (70%), and Petoro (30%).