Page 12 - MEOG Week 42 2022

MEOG NEWS IN BRIEF MEOG

the first half of the year was 110 million cubic prices could be set at the hub, away from Performance, High Value strategy and
meters of gas per day.” political overtones. the outstanding service we have delivered
He announced the amount of gas liquids But French President Emmanuel Macron to customers in the Middle East region.
production of South Zagros in this period at has responded that the proposal “makes no Furthermore, the recent contract awards allow
5.6 million barrels, and added: “The total oil sense”, given that Europe is aiming to be us to leverage our scale in the region and
production of this company was 1.7 million independent from Russian gas. generate steady, reliable cash flow, creating
barrels in the first half of this [calendar] year.” Europe has come to regard Russia as an value for our shareholders and fulfilling
The CEO of the South Zagros Oil and Gas unreliable energy partner. That unreliability, one of Precision’s 2022 strategic priorities
Production Company said: “This amount says Brussels, has been demonstrated by to maximize our operational leverage. I
of production was done while the accident Moscow’s actions in squeezing gas supplies to would like to congratulate our team for
index (recurrence factor in the severity of the EU member states in the wake of the West’s securing these contracts and look forward to
incident), fire and environmental crimes in sanctions response to the Russian invasion of continuing the excellent service our customers
South Zagros are zero.” Ukraine that started on February 24. can expect from Precision,” commented Kevin
SHANA BNE Neveu, Precision’s President and CEO.
PRECISION
Aramco establishing two
GAS SERVICES
US, France reject plan to Precision Drilling offshore fabrication yards
turn Turkey into Russian announces Kuwait contract The Saudi Arabian Oil Company (“Aramco”
or “the Company”), in collaboration with
gas hub awards international partners, is establishing
two offshore fabrication yards that aim to
The US and France have rejected the idea that Precision Drilling Corporation is pleased to deliver a more than 200 percent increase
Turkey could be turned into a hub for Russian announce that it was recently awarded four in the Kingdom of Saudi Arabia’s offshore
gas flows into the European Union. contracts in Kuwait, each with a five year fabrication capacity.
The proposal was made by Russian term and an optional one year renewal. The The new yards are being constructed in
President Vladimir Putin. Turkish President contract awards are for our AC Super Triple Ras Al Khair in collaboration with National
Recep Tayyip Erdogan responded positively. 3000 HP rigs and increase our active rig count Petroleum Construction Company (NPCC)
Turkey would work with the Kremlin to create in Kuwait from three rigs to five rigs by the and McDermott International. They are
the hub, Erdogan said on October 14, telling middle of 2023. expected to fabricate and assemble offshore
his officials to quickly deliver implementation In addition, we recently signed our third platforms, jackets and structures for subsea
plans. drilling rig in the Kingdom of Saudi Arabia pipelines.
US State Department spokesperson Vedant to a five year contract extension, following Designed to international standards
Patel pointed out on October 19: “We have two earlier five year contract signings in the and harnessing latest technologies, they are
continued to urge our allies to take steps second quarter of this year. With the three intended to serve the Kingdom, GCC and
to diversify their energy sources, to reduce contract extensions in Saudi Arabia and broader markets. Establishing the yards at Ras
energy reliance on Russia. And in the case of the Kuwait contract awards, Precision will Al Khair also aims to support localization of
Turkey, we are working with them closely to have eight rigs under long-term contracts the maritime industry, and supplement the
assist in their own efforts to enhance energy in the Middle East stretching into 2028 and nearby King Salman International Complex
security in the long term.” representing approximately US$600 million for Maritime Industries and Services.
Putin, presenting the idea at a meeting (approximately C$820 million) in backlog Start-up of the facilities is planned for
last week with Erdogan on the sidelines of an revenue. the third quarter of 2023, with the initial
intergovernmental summit in Kazakhstan, “Precision’s success in earning these combined production capacity estimated at
said Turkey would be “the most reliable route contract awards is a result of our team’s roughly 70,000 metric tons (MT) per year,
for Russian gas to Europe”. He added that dedication and commitment to our High increasing the Kingdom’s total offshore

P12 www. NEWSBASE .com Week 42 19•October•2022