AGR, Chevron Charge Ahead with New Drilling System

AGR Drilling Services has been working for more than 18 months in conjunction with Chevron, on the design and development of a fully integrated, Dual Gradient Drilling System (DGD).

AGR Houston has had over 15 technical staff working on an integrated project team with Chevron personnel since the launch of this contract agreement in August 2009.

As a result of Chevron's recent project funding approvals, AGR is now tasked to manage the detailed design, manufacture, verification testing and rig fit-up of this Dual Gradient Drilling System -- the first fully integrated and commercialized system in the industry.

This build, verification and rig installation program will continue through 2011.

AGR is well known for its subsea pump/mud recovery systems that are used around the world on top-hole sections of subsea wells. This DGD development project, now through the system installation on the rig, is a major technological step forward for AGR and represents a step change in their deepwater, post-BOP capabilities.

Terry Scanlon, Senior Vice President for AGR Drilling Services in Houston stated, "We have been fortunate to be able to develop this DGD system capability in conjunction with Chevron, which is well-known for its collaborative, team approach to such industry challenges. The knowledge and expertise we are bringing to the project, now through hardware phase, will further enhance AGR's position as a technology and deepwater operations leader in pre-BOP and now post-BOP life-of-well applications. This ongoing contract is a major platform for us as we broaden and develop the knowledge and skill sets to continue to be Chevron's service provider of choice for this game-changing technology."