Gulf Drilling International (GDI) has signed QR5.2bn worth of contracts with Qatar Petroleum (QP) for the provision of onshore and offshore rigs.
GDI is a subsidiary of Gulf International Services (GIS) and is the largest oilfield service company in Qatar.
Each of the four new contracts and four contract extensions GDI signed with Qatar Petroleum (QP) has a five-year term. These represent the largest single GDI client commitment since it was established 10 years ago.
The new contracts have been concluded for the provision of two new offshore drilling rigs ‘Dukhan’ and ‘Halul’ and two new land rigs GDI-7 and GDI-8. The contract extensions allow the continuation of services performed by four land rigs GDI-1, GDI-2, GDI-3 and GDI-4. The awarding of these contracts was announced in previous reports.
The contracts were signed by HE the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada, also the Chairman and Managing Director of Qatar Petroleum, and Ibrahim J al-Othman, GDI chief executive officer.
It was attended by Saad Sherida al-Kaabi, QP director (oil and gas ventures).
Al-Sada said, “The new contracts will allow continuing, as well as expanding, the important development work Qatar Petroleum is undertaking. Each of the contracted rigs is being customised to meet the best in class criteria specified by Qatar Petroleum.”
The minister praised the “high quality” of services provided by GDI and the level of commitment and dedication it has demonstrated to achieve its challenging goals.
Al-Othman expressed his gratitude and appreciation to al-Sada and the GDI board of directors for their continuous support and guidance.
He said, “GDI fully appreciates the value of the partnership that has been developed with Qatar Petroleum. These contracts will positively impact our revenue growth immediately, which will positively reflect on our profitability for this year and the next five years. Furthermore, the addition of a new offshore rig for QP – ‘Halul’ in 2016 will greatly support our long-term revenue growth plans.”
By mid-2016, GDI will have a total of 18 drilling rigs, in addition to one accommodation jack-up and two liftboats.
The new offshore drilling rig “Halul” is currently being built to the proven “Mod VB Bigfoot” design, similar to the recently delivered rig “Dukhan.” These rigs are expected to be placed into service in Q4, 2014 and Q2, 2016, respectively.
These offshore rigs will be the newest addition to GDI’s fleet. Each rig will come complete with a centrifuge system for solids control, extra bulk hoppers on deck, 7,500 psi mud pumps, a 15,000 psi choke manifold, 150 man accommodation, 10,000 HP power packages, off-line building stands, and a 75 foot cantilever outreach.
The two new land rigs are currently under construction in the USA. GDI-7 will be a 1500HP rig, while GDI-8 will be a 3000HP rig, making it the biggest land rig in GDI’s fleet. The bigger rig will provide GDI with the capability of drilling deeper wells and executing extended reach wells to a much greater depth.
The land rigs will also come with a number of ancillary assets that are required to support a land operation. Ancillary assets include water well rigs, mobile cranes, trucks and trailers.
GDI’s onshore base camp, workshop, storage yards, warehouses and accommodation facilities are also being expanded to support the additional work. These are expected to be received and placed into service during the second half of 2015.
The four existing land rigs GDI-1, GDI-2, GDI-3 and GDI-4 are already working under contracts to QP and GDI will continue to utilise them at the “highest operational standard”.
GDI said it was also in the process of recruiting additional personnel and providing the necessary training, certification and orientation so that they can man and operate these rigs in a safe and efficient manner.
British markets spooked by poll showing Scots may vote to break up UK
British financial markets tumbled yesterday after an opinion poll showed for the first time this year that Scots may vote for independence in a referendum next week, breaking up the United Kingdom.
The survey prompted concern bordering on panic among Britain’s ruling elite, with Prime Minister David Cameron’s Conservative-led government promising proposals this week to grant Scotland greater autonomy if it stays.
Cameron’s job would be on the line if Scots vote on September 18 to secede, less than eight months before a national election planned for May. His spokesman said yesterday the government was not making contingency plans for the possibility of Scottish independence.
Sterling fell more than 1% - its biggest one-day drop in 13 months - to $1.6141, long-dated government bonds tumbled and £3.5bn ($5.7bn) was wiped off the market value of six London-listed companies with large exposure to Scotland.
“Be afraid, be very afraid,” Deutsche Bank analysts said in one of a flurry of notes by banks to investors outlining the risks to the UK economy and European unity of Scottish independence.
Unionists played down the market moves. Alistair Darling, a former finance minister who leads the unionist ‘Better Together’ campaign said it was natural in the run-up to a vote.
After months of polls showing nationalists heading for defeat, the survey by the respected YouGov pollster raised the real prospect that secessionists could achieve their goal of breaking the 307-year-old union with England.
A vote for independence by Scotland’s 4mn voters would be followed by negotiations with London on what to do about the pound, the $2.1tn national debt, North Sea oil and the future of Britain’s nuclear submarine base in Scotland ahead of independence pencilled in for March 24, 2016.
With less than two weeks to go before the September 18 vote, the poll put the “Yes” to independence campaign on 51% against “no” camp on 49%, excluding undecided voters, overturning a 22-point lead for the unionist campaign in just a month, the Sunday Times said.
The FTSE 100 Index of blue chip companies fell as much as 1.2%, dragged down by Babcock, Lloyds Bank, Royal Bank of Scotland, Standard Life, energy group SSE and Weir group.
The cost of insuring against default by banks with significant Scottish exposure, such as Lloyds and RBS, rose. The so-called credit default swap on 82% state-owned RBS had the second biggest daily rise this year, according Markit prices.
Europe’s main stock markets were mixed yesterday. Frankfurt’s DAX 30 gained 0.11% to 9,758.03, while Paris’ CAC 40 closed at 4,474.93 points, down 0.26% compared with Friday’s close.
Banking industry sources told Reuters last week that Lloyds is considering moving its registered offices to London if Scots vote for independence. RBS is also examining its options.
The two banks have warned that an independent Scotland would present a significant risk to their businesses, impacting their funding, tax and compliance costs.
Nationalists accuse London of squandering Scottish wealth and say that Scotland would be one of the world’s richest countries if it took control of its own destiny.
Unionists, including Britain’s three main political parties, say the UK is stronger if it stays together and that Scottish independence would bring significant financial, economic and political uncertainty. Page 16