Halliburton and Trinidad Drilling enter into a JV
New company will eye drilling in Saudi Arabia and Mexico
Trinidad Drilling has entered into a joint-venture with Halliburton worth $113.8 million to build a new rig and upgrade three more for contracts in Saudi Arabia, the company said.
The job will be assigned to the JV between the two companies to provide drilling services for Halliburton internationally with an eye first to the Kingdom of Saudi Arabia and Mexico, the Calgary-headquartered drilling contractor said in a statement.
"We see this agreement as a significant milestone for Trinidad in international markets," chief executive Lyle Whitmarsh said.
"By aligning ourselves with a major oilfield services company, such as Halliburton, we are able to open the doors to a new level of international growth."
Halliburton currently has integrated projects in over 20 countries, and expects that number to increase as more operators adopt this model for their drilling operations.
"We are very excited to be partnering with a top tier drilling company such as Trinidad for the benefit of our customers on our integrated projects" said Paul Koeller, Halliburton's Vice President for Consulting & Project Management.
"The integration of Trinidad's high-performance drilling services with Halliburton's leading edge technology, coupled with Trinidad's manufacturing capabilities, will provide a new level of drilling integration not seen in integrated project management".
The joint venture has an indefinite term; although, either party may exit after five years, or earlier under certain circumstances. The joint venture arrangement includes non-competition provisions and Trinidad and Halliburton will provide certain services to the joint venture.
The JV, called Trinidad Drilling International, will see a 60% majority interest held by the rig contractor.
The Saudi work, worth $120 million for Trinidad, will be performed at company facilities and be completed by mid-2014.