Egypt’s rig market revived

The Egyptian rig market has witnessed an active transaction processes with the beginning of this month; three petroleum companies finalized new rig renting agreements needed for their exploration and production operations.

Suez Oil Co. (SUCO), a joint venture between the Egyptian General Petroleum Corporation and RWE Dea, is to rent Ocean Heritage Rig, owned by Diamond Offshore, for a full year at a daily renting cost of $64.5 thousand.

The second rig agreement was sealed between North Bahariya Petroleum Co. (NORPETCO) and the Egyptian Chinese Drilling Company (ECDC). After a series of negotiations, NORPETCO agreed to pay a daily renting of $14 thousand, instead of $17.5 thousand, for the ECDC-7 for one full year.

Also, Ukrainian Naftogaz finalized a renting agreement for the EDC-17, worth $13.5 thousand a day, including the Top Drive equipment. Naftogaz is to utilize this rig in the Western Desert.

“The renting rates agreed upon are unprecedented in the Egyptian market and it can be considered a good sign for the sector taking into consideration the current global economic crisis, which has negatively lowered down the prices as various companies postponed/cancelled their E&P activities,” said an official at the EGPC.


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