Asian drilling giant Greka has been awarded two new contracts in China.
The first contract is a turnkey contract with Greka Guizhou E&P Ltd (“GGZ”) and the other is a contract with Bohai Drilling Engineering Company (“BDE”), a subsidiary of CNPC (China National Petroleum Corporation).
The work scope under the $4.9million turnkey GGZ contract consists of site preparation, supply of all tangibles, services and drilling needed to complete 12 wells.
The programme consists of two multi-well pads with one vertical and five directional wells to be drilled on each pad to an average depth of 850 metres.
Two of the company’s GS130 rigs have been mobilized to commence the drilling of the 12 wells, which are expected to be completed by year end.
Under the BDE contract, the company will be a subcontractor to BDE who is the newly appointed principal drilling company for drilling all horizontal wells for its parent company CNPC.
BDE has contracted the company’s advanced CBM purpose built GD75 rigs, equipment and expertise to complete horizontal wells over two years with a $4.2million minimum commitment.
Greka has also announced that two of its non-executive directors, David Turnbull and Richard Day, are stepping down from its board with immediate effect.
The company’s board now comprises Randeep Grewal as executive chairman and two non-executive directors, Bryan Smart and Sean Mulhearn.
Mr Grewal said: “I am delighted with the signing of these two new contracts in addition to the previous three contracts from CNPC, announced earlier this year.
“In a strengthening China coal bed methane (CBM) market, Greka Drilling with our advanced GD75 CBM specific rigs is being seen by many operators as the drilling company of choice.
“With the current contracts in hand we expect to be utilizing seven rigs by year end in China.
“The signing of the strategic contract with Bohai is a significant event which is expected to evolve into a long-term relationship between the two companies and create many opportunities for Greka Drilling as state-owned companies continue to ramp up their CBM drilling projects.”
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