Precision Drilling secures contract for 1,500-hp newbuild in Middle East

Precision Drilling has been awarded a contract for a 1,500-hp newbuild that will operate for an operator in the Middle East, with deployment expected in mid-2015. The rig will be the ninth Middle East deployment for Precision since mid-2012. “This rig award is an important step in the execution of our international growth strategy to serve high-quality customers in technically challenging well applications,” Kevin Neveu, Precision’s President and CEO, stated.

He continued: “This newbuild deployment will follow the previously announced two ST-3000 rig deployments to Kuwait, which are on budget and are beginning operations slightly ahead of schedule, and the newbuild ST-2000 rig that is expected to be deployed to Saudi Arabia late in 2014. We are pleased to continue to grow our Middle East footprint, which is nearing the level of scale we need to generate the margins and returns Precision is accustomed to generating.”

Construction costs associated with the newbuild rig in the newest contract are included in the capital plan announced in April 2014.