Trinidad Drilling: Rigs head to Mexico
Trinidad rigs head to Mexico
Calgary-based Trinidad Drilling has agreed to move four existing, under-utilised rigs from its Canadian operations into Mexico under long-term, take-or-pay contract.
Trinidad has agreed with its current business partner in Mexico, a large US-based, multi-service provider, to redeploy four existing rigs from its Canadian operations into the Chicontepec region in central eastern Mexico.
The rigs are contracted to work at a utilisation rate of 100% for an initial term of 18 months, with a further 18-month extension option, the company said in a statement.
The rigs selected for redeployment are part of Trinidad's existing Canadian fleet and are not currently under contract or working.
Minor enhancements will be made to the rigs in order to prepare them for the Mexican climate and the specific work conditions they will be operating in and are expected to cost $8 million.
The rigs are anticipated to be operational in Mexico beginning in the third quarter of the year, with all four rigs drilling in Mexico by the end of the year.
The costs associated with relocating the rigs into Mexico and demobilisation back to Canada within the first 18 months will be paid by the operator.
Following the first 18 months, the responsibility of the demobilisation costs will be based on a sliding scale, dependant on contract extension in Mexico, the company said.
No further details were provided.