Release: PT Medco Energi Internasional Tbk: Contract awards of two drilling rigs for Libyan operation
Monday, April 17 2006 - 03:40 AM WIB
Contract awards were approved by the Area 47 Management Committee which includes MedcoEnergi, Verenex Energy Inc. (?Verenex?/the ?Operator?), and the Libyan National Oil Company (?NOC?).
The first rig contracted with Oil Drilling & Exploration (Borneo) Pty Ltd, a subsidiary of Ensign Energy Services Inc. based in Calgary, Canada, is scheduled to spud the first well in the Area 47 late in the third quarter 2006. The second rig is contracted with KCA DEUTAG Drilling GmbH based in Bad Bentheim, Germany, is scheduled to be in place in the first quarter of 2007. Both rigs are capable of drilling through expected target depth of 12,000 feet.
Both contracts include an initial two-year term, with two one-year extension options exercisable by the Operator. Under the contract terms, the Company and its partners are able to assign the rigs to the third parties, with the approval of the contractors, if circumstances warrant.
?In line with the Company?s commitment, the drilling contracts would enhance the Company position to move forward on a timely basis to test the potential of Area 47,? mentioned Hilmi Panigoro, CEO of MedcoEnergi. (end of release)