Stone Energy contracted to buy 2 drilling rigs in Iraq
Stone Energy Holding Company, a subsidiary of AlSalam Group Holding Co and in cooperation with Kerui Group company, won a contract to purchase two drilling rigs with operational power equivalent to 1500 hp and 2000 hp, a total value of $30 million. The drills are to be used to implement drilling contracts exploratoring deep oil wells in the Republic of Iraq, in depths of up to 7000 m.
Hassan AlShamali, Chairman and Managing Director of Stone Energy Holding Co, stated that under this agreement with Kerui Group company, which is one of the largest companies in manufacturing of drill rigs for oil and gas exploration, Stone Energy will start transferring the drilling rigs this year to begin work directly in the execution of long-term contracts, pointing out that it was taken into account in the design of these new rigs to be able to work in oil fields in south or in north Iraq.
AlShamali added that the new drilling rigs are the latest in the world, as they can work for new exploratory sites and pre-existing wells in the oil fields of southern Iraq. They are designed in a way that allows for rapid movement between wells, particularly in southern fields, which are located at close distances. This contributes to the activation of the strategic plan of the company approved by the Board of Directors for the expansion of drilling operations in cooperation with international oil companies and using the latest drilling equipment and oil services. AlShamali added that Stone Energy Holding company proved an excellent presence in the implementation of drilling works of exploratory oil wells in the Arab Republic of Egypt and the Republic of Iraq for a number of large international companies, such as Centurion and Dana Gas, Crescent Petroleum, Shamaran and Oil Search, which has increased confidence in Stone Energy as a Kuwaiti company.
AlShamali noted that Stone Energy Company seeks to activate the instructions of the Board of Directors, and implement the recommendations of the Executive Committee of the company, stating the need to work on the implementation of the strategic plan of Stone company, which had been approved.
This includes the expansion of drilling oil and gas wells, and increasing the number of company operating drilling rigs by a number between 2 to 3 drilling rigs annually. AlShamali stressed the completion of the agreement with the Kerui, "the supplier of the Rigs,” to ship the spare parts necessary for these rigs and all the equipment attached thereto, with a stock enough for one year of periodic maintenance as of the date of operation, pointing out that the agreement stipulated that the company producing rigs shall provide technical support and supervision of installation and actual operation tests of the rigs in the specified location of operation in addition to providing technical advice necessary for the operating crew. As part of the keenness of Stone Energy Holding Company toward applying the contracts it will conclude with the contracting companies Southern Oil Company in southern Iraq, and the Ministry of Natural Resources in northern Iraq.
- No pain, no gain: Tunisian economy needs three years of tough love before rebounding
- How will MENA economies look in 2015?
- Sanctions face-off: Iran to unveil its corporate side in London next week
- Going cold turkey: a look into Israel's impending $4 billion privatization drive
- A futile endeavour? Recruitment of 1.2 million expats defeats Saudization drive