DRILLING Services company High Arctic Energy Services has signed a two-year contract with InterOil worth about US$30 million every year.
The company will provide its Rig 116, along with a 100 person camp, for the two years once the rig has been accepted at the first drilling location in Papua New Guinea.
It is anticipated that the rig will begin operations in the third quarter of 2015, High Arctic said.
Company chief executive Tim Braun said the contract fulfilled the company’s growth strategy for the year.
“We are pleased that we have expanded our relationship with InterOil and look forward to partnering with them to commercialise their resource fields in PNG.”
Rig 116 is currently in Houston, Texas undergoing upgrading in preparation for this work and will be moved to PNG once the work is completed, the company said.
InterOil had signed another drilling services contract with High Arctic for Rig 115 earlier in the year.
With upgrading works completed, Rig 115 is expected to be shipped to PNG and ready to begin drilling operations by the end of March, 2015.
Both Rig 115 and Rig 116 will be supported from a common location near the InterOil resource fields, which will provide efficiencies in High Arctic’s service delivery offering, the company said.
Both rigs are heli-portable – an attractive factor for some PNG projects.