Parker Drilling forms joint venture with Saudi’s Al-Rushaid
Posted: 20 February 2006
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Parker Drilling and Abdullah Rasheed Al-Rushaid Company for Drilling Oil and Gas Limited have formed a joint venture company which will perform four drilling contracts, each with a term of three years with a one year option.
The drilling contracts were awarded by Saudi Aramco.
 The joint venture, to be called Al-Rushaid Parker Drilling LLC, is a Saudi Arabian limited liability company in which Parker and Al-Rushaid will each own a 50 per cent.
These contracts represent Parker's first entry into the Saudi Arabian land drilling market.
Al-Rushaid Parker Drilling LLC, will utilise new build rigs to perform the contracts, with the first rig scheduled to arrive on location in Saudi Arabia in the third quarter of 2006, and the three remaining rigs to be delivered in the fourth quarter of 2006.
Al-Rushaid Parker Drilling LLC has obtained asset- based financing to fund a substantial portion of the acquisition costs of the four new land rigs, with the balance of the acquisition cost, estimated at $20 million, funded equally by capital contributions of the joint venture partners.
Robert L. Parker Jr, President and CEO of Parker Drilling said: "This project is in line with our stated objective of seeking new growth opportunities in targeted markets with acceptable rates of return."
Although the financial impact to Parker should be minimal during initial years of the project, this market offers excellent opportunities for sustained growth for many years to come, he added.
Posted by Editor Pipeline Magazine
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