Archer ihas announced that its subsidiary in Argentina, has been awarded a total of US$125 million of additional drilling services to Pan American.
One contract is a 2.5-year extension, with improved commercial terms, for the three drilling rigs operating in Pan American´s Cerro Dragon Field. The contract extension has a value of approximately US$100 million and runs until the 4Q27.
The other contract is for one additional drilling rig in Vaca Muerta. This contract has a value of US$25 million over two years. The rig will mobilise in the 1Q24.
“Due to the economic instability, Argentina is challenging from an ownership perspective. However, the oil and gas activity in the country is good, and the new political leadership has expressed a clear intent to enhance drilling and production activities. These new contract awards significantly enhance the visibility and profitability of our local operation, and we believe this over time will result in further value creation for Archer’s shareholders,” says Dag Skindlo, CEO of Archer.
"Pan American is a leading player in the oil and gas industry in Argentina and this contract extension reflects their confidence in Archer’s ability to deliver safe and cost-effective operations. This partnership reflects our dedication to excellence, safety, and sustainability in every facet of our operations. We are excited about the opportunity to continue supporting Pan American with high quality and efficient drilling services in the years to come,” says Gerardo Molinaro, Vice President Archer Land Drilling.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25012024/archer-awarded-contracts-worth-us125-million/