Archer has secured a four-year contract extension with Apache Corp. on Sept. 23 for the provision of platform drilling operations and maintenance services on Beryl Alpha and Bravo, Forties Alpha, Bravo, Charlie and Delta in the U.K. North Sea.
The extension will commence January 1, 2021 in direct continuation of the current contract. Based on current and expected future activity, including additional services through our engineering, rentals and oiltools divisions, the extension has an estimated value of up to $100 million.
“We are very pleased to secure this contract extension which underlines Apache’s confidence in Archer’s capabilities in providing platform drilling and maintenance services on their assets. The extension strengthens our long-term business relationship with Apache, which dates back to 2004, and our position as a major provider of platform-based drilling and intervention solutions in the U.K.,” Dag Skindlo, CEO of Archer, said.
“During these challenging times, the professionalism of our team has ensured safe and efficient services to Apache. We firmly believe this contract win is a result of Archer’s continual commitment to provide operators with our experience and the right solutions to improve well delivery, integrity and performance,” Skindlo added.
Separately, the EIA projected U.S. natural gas output would decline for a third month in a row to 81.8 Bcf/d in November. That would be down over 600 MMcf/d from its forecast for October.
U.S. energy firms last week added oil and natural gas rigs for a third week in a row for the first time since October 2018 after price increases in recent months prompted some producers to start drilling again.
The crude oil production decline was the second consecutive slip, following a fall in January, according to data from the U.S. Energy Information Administration.