Sparrows Group has doubled the size of its operations in the United Arab Emirates (UAE) after securing contracts worth in excess of £55 million (US$ 70 million) in the past three months, it said on Nov. 5. The award have resulted in over 150 new positions being created in the region and includes scopes that accelerates the company’s expansion in the drilling sector.
Included in this recent round of wins is a significant five-year award with a major E&P business as well as two large drilling equipment support contracts.
Work on the five-year fully integrated mechanical lifting equipment management project has already commenced. It will see Sparrows deliver operation and maintenance of existing pedestal cranes and overhead cranes, static lifting equipment, lifeboat davits, loose lifting equipment and mechanical handling equipment will also be encompassed as part of the contract.
The first of two major contracts for drilling equipment services in the region will see the company deliver full overhaul and recertification of nine catwalk units and eight mast cranes. The second project is for the inspection, repair and recertification of a top drive and pipe handler. The work for both contracts will be undertaken in Sparrows’ workshop facilities in Abu Dhabi.
The company, which has been active in the UAE for more than 20 years, currently employs 200 people in the area. This includes 60 new personnel already brought into the business this year to support continued business growth.
Devon Energy had been actively shopping the Permian Basin assets, and others in the Rockies, the past several months.
U.S. oil output growth is expected to slow over the next five years, likely prompting oil majors to "gobble up" smaller shale oil producers, Mark Papa told Reuters.
WPX plans to implement a dividend in conjunction with the Felix acquisition, targeting about $0.10 per share on an annualized basis at initiation.