President Energy has awarded Schlumberger an 18-month contract to oversee drilling services in its Paraguay operations.
The energy services giant has been appointed to manage the integrated drilling and completion services, including well site supervision and engineering, for President’s operations in Paraguay.
The deal comes after the World Bank’s International Finance Corporation (IFC) pledged £12.5 million investment for President’s project in the country.
The South American-focused firm recently acquired more than 1,000km of 2D seismic, in addition to the 793km of 3D seismic acquired earlier this year, on two large concessions totaling 16,000 km2 in the Pirity Rift Basin of the Paraguayan Chaco.
President says early results point to significantly larger finds in the area than previously expected, with up to 500,000 barrels of oil – more than 300,000 more than originally believed.
“We are pleased to have reached this agreement with Schlumberger,” said President Energy chairman Peter Levine.
“Schlumberger has been involved with the project from the earliest stages of basin study and we feel their desire to tender these services in the operational phase is a significant vote of confidence for our project.”
The contract marked an acceleration in activity and the company remained on track for the spudding of the first well in Q2 2014, he said.
“Negotiations are also in an advanced stage with drilling rig contractors, with long lead items to be ordered imminently,” added Mr Levine.
“With the World Bank (IFC) announcement and now Schlumberger coming on board, alongside our own experienced and expanded management, we are building a strong team ahead of our material drilling campaign next year.”
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