Kuwait Oil Company has signed an offshore drilling services contract with U.S. oilfield services major Halliburton.
The contract is for six high-pressure high-temperature (HPHT) exploration wells on two jack-up rigs in the Arabian Gulf within Kuwait territorial water. While the parties did not share the financial details of the deal, Bloomberg has reported that the value is around $597 million.
Halliburton will provide and manage drilling, fluids, wireline and perforating, well testing, coring, cementing, coiled tubing, and all offshore logistical services. Additionally, Halliburton said it would provide the offshore rigs and supply vessels for the project.
KOC CEO Emad Mahmoud Sultan: “As part of KOC’s plan to increase production capacity by charting new territory in Kuwait’s offshore reserves, our Company is pleased to announce that we will be working on this ambitious project alongside one of our closest business partners, Halliburton, who will be assisting us through the provision of their many years of experience in the field of offshore exploration and production.”
“We are grateful for the opportunity to collaborate with KOC and implement our integrated services and innovative technologies to accelerate offshore development, reduce drilling and completions costs and increase recovery,” said Halliburton Eastern Hemisphere President Joe Rainey.
The contract includes a 3-year term with a 6-month extension option. Work will begin in mid-2020. The expected start date for the first rig is July 2020 and the second rig is January 2021.
KOC’s Sultan said the offshore drilling project is one of the most important projects to be implemented within KOC’s 2040 strategy.
Offshore Energy Today Staff
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