Going south: Savanna readies rigs for Mexico
Savanna supplies rigs to Mexico
Savanna Energy Services has entered into a contract with a large US based, multi-service provider to deploy four existing rigs from its Canadian/US fleet 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 an extension option.
The rigs to be supplied under this agreement are mid-depth telescoping double drilling rigs, representing the core conventional platform within Savanna, the company said.
The rigs will need minor modifications to allow them to work effectively in the Chicontepec region, such modifications and additional equipment expected to total less than $6 million.
The rigs are expected to be operational in Mexico by mid-August.
All costs relating to mobilisation of the rigs into Mexico from the US/Mexico border will be borne by the operator.
Similarly, demobilisation of the rigs, if any, will result in delivery of the rigs to the US as well.
This contract represents the first expansion of Savanna's drilling operations beyond Canada and the US, however it is anticipated by the company that the company will continue to expand its international presence moving forward, the company said in a statement.
Of the four rigs that are mobilising to Mexico, two will be relocated from the current US fleet, and two will be delivered from the previously announced four rig new-build programme.
With the execution of this contract, Savanna now operates four rigs in Mexico, 14 in the US, 87 in Canada, and will be accepting delivery of two additional new-builds by the third quarter of the year, resulting in a total fleet of 107 drilling rigs.