Australia Pacific LNG awards $220m rig contract
Posted: 24 December 2009
Australia Pacific LNG has reached another milestone with the announcement today that it had awarded a $220 million drilling and workover rig contract for the project.
The contract was awarded to Savanna Energy Services Pty Ltd (Savanna) for the provision of two proprietary hybrid drilling rigs and two workover rigs for a five year term from September 2010.
Savanna will create 50 jobs in Queensland to support the contract. Australia Pacific LNG is a 50:50 coal seam gas (CSG) to liquefied natural gas (LNG) joint venture between Origin and ConocoPhillips.
Australia Pacific LNG Project Director Todd Creeger said the awarding of the rig contract was another milestone for the Australia Pacific LNG project.
"The Savanna contract will provide for four drilling and workover rigs which are built for purpose to deliver the safest, most efficient and cost effective wells," said Todd Creeger.
"Importantly, these new rigs reduce the environmental impact on the land as they require a much smaller footprint for each well," he said.
Origin Executive General Manager Upstream Oil and Gas Paul Zealand said that, as upstream operator for the joint venture, Origin was very conscious of the improved safety levels and environmental impact associated with the rig, and their dedicated CSG capability when selecting Savanna and the hybrid rig technology.
"This contract is designed to provide the very latest in drilling and rig technology, supplement our existing drilling operations, and help us to meet our target of between 300 and 500 wells a year over the life of the project," said Paul Zealand.
"Savanna won a very competitive tender process which attracted 50 rig providers from around the world. Importantly, the contract will include additional skills training for our workforce."
Posted by Richard Price, Editor, EnergyME.com
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