By OGJ editors
HOUSTON, July 30 -- Agip Kazakhstan North Caspian Operating Co. (Agip KCO) has awarded a letter of intent to National-Oilwell Inc., Houston, for the design and construction of a complete drilling facility for Agip KCO's "D" Island project in Kashagan field in Kazakhstan.
The project, which is valued at about $150 million, will include two complete harsh-environment land drilling rigs and drilling support equipment. Under terms of the LOI, Agip KCO already has made an initial payment of $30 million; the contract is to be finalized in early August.
The harsh-environment style, 3,000 hp rigs will be designed to drill on artificial islands in the North Caspian Sea, where winters are similar to those on the Alaskan North Slope, National-Oilwell said.
The rigs, which are due to be shipped in third quarter 2005, can drill to 25,000-30,000 ft and can be moved fully erect from well to well via rail.