Precision Drilling was recently awarded four contracts in Kuwait, each with a five-year term and an optional one-year renewal. The contract awards are for its AC Super Triple 3000 HP rigs and will increase the company’s active rig count in Kuwait from three rigs to five rigs by the middle of 2023.
In addition, Precision recently signed its third drilling rig in Saudi Arabia to a five-year contract extension, following two earlier five-year contract signings in Q2 2022. With the three contract extensions in Saudi Arabia and the Kuwait contract awards, Precision will have eight rigs under long-term contracts in the Middle East stretching into 2028 and representing approximately $600 million in backlog revenue.
“Precision’s success in earning these contract awards is a result of our team’s dedication and commitment to our ‘High Performance, High Value’ strategy and the outstanding service we have delivered to customers in the Middle East region,” said Kevin Neveu, Precision President and CEO. “Furthermore, the recent contract awards allow us to leverage our scale in the region and generate steady, reliable cash flow, creating value for our shareholders and fulfilling one of Precision’s 2022 strategic priorities to maximize our operational leverage.”