GDI Receive Contract Extensions For Four Land Rigs Valued at QR 1.6 Billion with QP

Gulf Drilling International (“GDI”), a wholly owned subsidiary of Gulf International Services (GIS), being the largest service group listed on the Qatar Exchange, announced today that four of its contracts with Qatar Petroleum (QP), covering the provision of the onshore rigs “GDI-1”, “GDI-2”, “GDI-3” and “GDI-4”, were extended for an additional five years with effect from the second quarter of 2014.  The cumulative value of these contract extensions, taking into account revised daily rates and income for ancillary services, is QR 1.6 Billion.

These rigs have been working exclusively for QP in the Dukhan oilfields since they were first acquired. The 1500hp rigs, GDI-1, GDI-2 and GDI-4, commenced operations in 2004, 2005 and 2006, respectively, while the 1000hp rig, GDI-3, began operating in 2008. While working for GDI, these four 4 rigs have combined to drill 172 wells, equating to 1.71 million feet of hole drilled, and have worked-over an additional 279 wells. GDI is in the process of upgrading the equipment that is installed on these rigs, which will now include high volume centrifuges, larger power packages, shale shakers and additional camp accommodations to ensure top quality performance and QP satisfaction.

Ibrahim J. Al-Othman, GDI’s CEO, noted with gratification that the four contract extensions marked the third significant transaction that GDI has concluded with QP this year. The two previous transactions were the awarding of new contracts of five years each for two new land rigs (GDI-7 and GDI-8) and a new jack-up rig (“Dukhan”).  “I am pleased to have successfully secured these contracts at this time as they will positively impact our financial results starting this quarter and continue for the next five years,” said Mr. Al-Othman.

With GDI celebrating its 10th anniversary this year, Mr. Al-Othman said, “It is time to recognize the fine support that QP has given GDI over the years.  This 10-year milestone would not have been possible were it not for the support of QP. Working for QP has given GDI the opportunity to develop the skills, technology and competencies to become a world-class drilling service provider. I am also thankful to H.E. Dr. Mohammed Bin Saleh Al-Sada, the Minister for Energy and Industry, QP Chairman and Managing Director for his continued support of these efforts. I would also like to take this opportunity to thank the GDI Board of Directors for their vision, guidance and support, and all employees for their hardwork and dedication.”

In recent years, GDI has made several investments to expand and upgrade its land operations in and around Dukhan.  In addition to its drilling rigs, GDI has a full complement of ancillary equipment that are used for transportation, rig moves, well site preparation, catering, communication and the drilling of water wells.  In addition, it also has offices, accommodation buildings, warehouses and work shop facilities that have recently been renovated and expanded to support this growing segment of its operations.