Pride awarded drilling contracts in Caspian Sea, Gulf of Mexico

July 2, 2002
Operators have awarded drilling contracts related to world-class projects off Kazakhstan and in the deepwater Gulf of Mexico to Pride International Inc., Houston.

By OGJ editors

HOUSTON, July 2 -- Operators have awarded drilling contracts related to world-class projects off Kazakhstan and in the deepwater Gulf of Mexico to Pride International Inc., Houston.

The first, awarded by Agip Kazakhstan North Caspian Operating Co. NV (Agip KCO), is for Pride's 3,000 hp Rig 319 to work in the world's newest supergiant oil field, Kashagan, in the Caspian Sea. The rig will drill under a 1-year contract with the option for two 1-year options.

Rig 319 will be modified and enhanced for deployment to an artificial island in the Kazakh sector of the Caspian Sea, Pride said. Agip KCO is operator of Kashagan field on behalf of a consortium of international companies: BG Group PLC, ExxonMobil Corp., Inpex Masela Ltd., Phillips Petroleum Co., Royal Dutch/Shell Group, and TotalFinaElf SA. The partners announced plans for development of Kashagan field last month (OGJ Online, June 28, 2002).

The total contract value—excluding option periods but including the rig's modifications—is more than $35 million. The rig should be ready to be mobilized in the third quarter, with operations to expected to begin during second quarter 2003, Pride said.

The other contract, covering 1 year, is for Pride's Rig 1503 (formerly Rig 1004). The contract, let by Dominion Exploration & Production Inc., is to conduct drilling operations from the Devils Tower spar platform in 5,600 ft of water on Mississippi Canyon Block 773. Plans for development of Devils Tower oil field were revealed last year (OGJ, July 2, 2001, p. 8).

The second rig contract includes work to upgrade the rig to 1,500 hp from 1,000 hp and to equip it for dynamic-environment operations. The contract, which is expected to take effect during the second quarter of 2003, is valued at $11 million, including rig modifications.