DOHA, QATAR - Gulf International Services (“GIS” or “the group”; QE: GISS), the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services provided insight on it business outlook for the drilling segment.
In 2011, Gulf Drilling International adopted an ambitious growth strategy designed to expand, diversify and modernize its then fleet of 9 rigs (5 offshore jack-up rigs and 4 onshore land rigs) to meet the evolving needs of its growing clientele in Qatar. Since that time, significant progress has been made.
Over the last 2 years, GDI has added six more operations to its portfolio. Those include an accommodation barge, Zikreet, under contract to RasGas and 2 land rigs, GDI-5 and GDI-6, under contract to QP that were added in 2012. In 2013, three more operations were added, consisting of 2 high specification jack-up rigs, Al-Jassra and Les Hat, that are under contract to Maersk Oil Qatar, and a lift-boat, Dixie Patriot, that GDI is managing for Dolphin Energy under a contract that was recently extended through 31 December 2014.
Looking ahead to 2014, further growth is envisioned with three more assets being placed into operation. Those assets include a high specification jack-up rig, Dukhan, under construction in Singapore that will be utilized by QP upon its expected delivery to them in Q4 of 2014, a new accommodation lift-boat, Rumailah, under construction in Abu Dhabi that will be utilized by Maersk Oil Qatar upon its expected delivery to them in Q2 of 2014 and a conventional jack-up rig, Msheireb, that was acquired in January of 2014 and is being refurbished in Ras Laffan, Qatar that will be utilized by Occidental Petroleum upon its expected delivery to them in Q2 of 2014.
In the span of just three years, the number of operations being conducted by GDI will have doubled from nine to eighteen. All of these assets are expected to be under contract in 2014, keeping the company’s utilization rate at 100%.
With market conditions remaining favorable, the company continues to evaluate opportunities for further growth. If an asset is suitable for the long term requirements of a targeted client and can be acquired on favorable terms within the capital constraints of the company, GDI will favorably consider any prospective acquisition. In this regard, GDI is currently considering the possibility of acquiring further land rigs.
In closing, the company reiterates its commitment to openness and transparency, and confirms that in line with the disclosure requirements of GIS, the Qatar Exchange will be informed if any price sensitive information arises, as per the applicable rules and regulations.