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Home Upstream Drilling

Korea National Oil Corporation contracts KS Drilling subsidiary for drilling services in Kurdistan

in Drilling, News, Upstream
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Korea National Oil Corporation (KNOC) has awarded a contract to Atlantic Onshore Services, a subsidiary of KS Drilling, to carry out drilling services in Kurdistan, Iraq.

Apart from drilling services, the new contract also includes charter of KS Discoverer 1, the group’s (KS Energy together with its subsidiaries) 1,500HP onshore drilling rig.

Drilling work is expected to be initiated in early second quarter of 2015 and it would continue until the completion of one well, which is expected to take 150 days.

Under the deal, KNOC also has the option to extend for one further well, with expected completion duration of another 150 days.

According to KS Energy, total value of the new contract, including the optional well, is expected to be around $7m.

The new contract is not likely to have any impact on the earnings per share and net tangible assets per share of the KS Energy for the financial year ending 31 December.

KS Drilling is an 80%-owned subsidiary of KS Energy and the main activities of its subsidiaries are in the provision of onshore and offshore drilling services, rig management and support services, oilfield equipment ownership and leasing.

 

In a statement, KS Energy noted that none of the company’s directors or substantial shareholders has any direct, or indirect, interest in the above mentioned transaction, other than for their respective interests, through their shareholdings and/or directorships.

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