Gulf Drilling International Signs a Joint Venture
Agreement with Seadrill
August 18, 2019
Further to the press release dated 1 May 2019, Gulf International
Services (GIS) announced that Gulf Drilling International
Limited (GDI), a wholly owned subsidiary of GIS, has executed a
joint venture agreement with Seadrill limited to service the
Qatar Petroleum North Field Expansion drilling program. The
joint venture, which will be established by Qatar Financial
Centre under a 50:50 ownership structure, will be named
“GulfDrill”.
The joint venture is formed to support the execution of the drilling
contracts, which have been awarded to GDI. GDI has no required
capital contribution to the joint venture. GDI will be
subcontracted by the joint venture to mobilize and manage the
rigs to meet the requirements of the drilling contracts. The
joint venture will source rigs directly from Seadrill, and any
additional rigs required will be sourced from an unrelated
third-party shipyard.
The firm terms of the well-based contracts will commence in 2020
with initial terms concluding in 2023 and 2024 and an estimated
total contract value (including mobilization income) of QAR 2.39
billion. The contracts include single well-based options which
could add up to an estimated 13.7 cumulative years of term and
an additional contract value of QR 2.55 billion. The options
could be exercised only if the contractual stipulations are
realized prior to the end of the firm contracts period. If the
options are exercised by the customer at a later date, GIS will
announce the award of the options accordingly.
Commenting on this, Mr. William Ceppi, GDI's Chief Executive
Officer, stated, “We are pleased with the continued
collaboration with our joint venture partner. We look forward to
working closely with all stakeholders on this significant
project and we remain honored to be entrusted to continue our
safe and efficient operations for Qatar Petroleum.”
The joint venture comes in line with GIS's strategy to capture new
business opportunities that would potentially help increase
revenues and ultimately maximize shareholder value.
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