Parker Wins O&M Contract for BP's Liberty Rig on North Slope

Parker Drilling secured the award of an initial two-year Operations and Maintenance (O&M) contract for BP's Liberty rig, a land-based rig designed to drill ultra-extended-reach wells to offshore targets in the Liberty field from the North Slope.

The O&M contract is the third phase of the Liberty field development project awarded to Parker. Phase one was a technical service project awarded in 2006 by BP to provide a conceptual design for the purpose-built rig, and phase two was the construction and commissioning contract, awarded in 2008.

Work under the O&M contract has already begun. The Liberty rig arrived at the drilling site in July after being transported via barge.

The Liberty rig's ultra-extended-reach wells, guided by 3-D seismic imagery, will extend nearly two miles deep and as far as eight miles out, some with measured depths exceeding the current record of over seven and a half miles.

Robert L. Parker Jr., Parker Drilling's chairman and chief executive officer, said, "In circumstances such as the Liberty project, in which our customer requires a unique, customized drilling package, Parker draws on our 75 years of drilling expertise, technology development and record-setting performances to create advanced solutions through our Project Management and Engineering Services segment including Front-End Engineering and Design (FEED); Engineering, Procurement, Construction and Installation (EPCI); and Operations and Maintenance of customer-owned rigs.

"The Liberty contract is the latest addition to our Project Management portfolio, which currently includes the FEED study for the Arkutun-Dagi offshore platform, the O&M contracts for the Orlan platform and the Yastreb extended-reach drilling rig (also designed and constructed by Parker), all for the Sakhalin-1 consortium; and the supply of technical services to 18 rigs owned by Kuwait Drilling Company.

"Because of our efficient, innovative solutions and industry-leading safety performance, we are a trusted partner for some of the world's largest exploration companies. In accordance with our strategic plan, we expect to grow this segment in the long term," Parker concluded.