Precision Drilling Corporation announce that it was recently awarded four contracts in Kuwait, each with a five year term and an optional one year renewal.
The contract awards are for AC Super Triple 3000 HP rigs and increase active rig count in Kuwait from three rigs to five rigs by the middle of 2023.
In addition, Precision Drilling recently signed third drilling rig in the Kingdom of Saudi Arabia to a five year contract extension, following two earlier five year contract signings in the second quarter of this year.
With the three contract extensions in Saudi Arabia and the Kuwait contract awards, Precision will have eight rigs under long-term contracts in the Middle East stretching into 2028 and representing approximately US$600 million (approximately C$820 million) in backlog revenue.
“Precision’s success in earning these contract awards is a result of our team’s dedication and commitment to our High Performance, High Value strategy and the outstanding service we have delivered to customers in the Middle East region. Furthermore, the recent contract awards allow us to leverage our scale in the region and generate steady, reliable cash flow, creating value for our shareholders and fulfilling one of Precision’s 2022 strategic priorities to maximize our operational leverage. I would like to congratulate our team for securing these contracts and look forward to continuing the excellent service our customers can expect from Precision,” commented Kevin Neveu, Precision’s President and CEO.
