GDI’s “hi-spec premium” jack-up rig ‘Al Khor’ which will be used to drill an exploratory well offshore Qatar in 2014. Increased demand on its services has helped GDI to achieve rapid growth with its rig fleet expected to double in three years to 18 by 2014.
Gulf Drilling International (GDI) is all set to become a wholly-owned subsidiary of Gulf International Services (GIS) with the latter buying out the entire 30% stake held by foreign partner Japan Drilling Corp (JDC).
“The company (GIS) has entered into discussions with the foreign partner in its joint venture, GDI, regarding the acquisition of its 30% stake in the capital of GDI in order for GDI to become a wholly owned subsidiary of GIS,” a GIS spokesman said in a communiqué to the Qatar Exchange.
However, the communiqué was silent on how much GIS would pay to Tokyo bourse-listed JDC, an international drilling contractor that supplies operational personnel to GDI through a technical services agreement.
GIS also holds 100% of the shares of Gulf Helicopters Company, Al-Koot Insurance and Reinsurance Company as well as Amwaj Catering Services. It is Qatar’s premier service group dedicated to serving the oil and gas industry.
GIS has interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services.
Increased demand on its services has helped GDI to achieve rapid growth with its rig fleet expected to double in three years to 18 by 2014.
GDI provides drilling services on a “day rate” basis which includes the provision of drilling rig, rig crew and associated services to safely carry out the drilling operations required by its clients.
Its market share at the end of 2012 was 86% of onshore operations and more than 40% of the offshore operations respectively. GDI is aiming to enhance its share of the offshore market to 50% by 2015, according to the company’s website.
GDI has also diversified its range of services to now include accommodation barges and lift-boats as these activities are complementary to the existing drilling operations.
“With market conditions already strong and showing signs of further strengthening, we are evaluating additional opportunities for growth that, with further development, could lead to additional investments,” GDI chairman Saad Sherida al-Kaabi had said in the 2012 annual report.