Dragon Oil announces contract for a platform-based rig awarded

Wednesday, Dec 23, 2009

Dragon Oil plc, an international oil and gas exploration and production company, announces that it has awarded a two-year contract to Naftna Industrija Srbije (NIS) Naftagas for the lease and management of a land rig (the 'NIS Rig' and formerly known as 'CIS Rig 1') in the Cheleken Contract Area of Turkmenistan.

The Group previously employed the rig (CIS Rig 1) under a different contractor to drill from the Dzheitune (Lam) 22 platform. Dragon Oil released the CIS Rig 1 with the intention to secure a platform-based rig with higher specifications. However, during the tendering processes, Dragon Oil recognised the challenges of sourcing such a rig taking into account mobilisation time, contract terms and the Group's standard requirements. It was, therefore, considered in the Group's best operational interests to proceed with the same rig but at more favorable contract terms and conditions.

The Group plans to drill seven wells using the NIS Rig during its contract term. The rig is to be mobilised to the Dzheitune (Lam) 28 platform shortly.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to announce that Dragon Oil has awarded the contract for the lease and management of the NIS platform-based rig for a period of two years. We have now secured three full-time rigs alongside the Astra jack-up rig, which is contracted on a short-term basis to support our drilling programme in the Cheleken Contract Area." 

Source: Dragon Oil