Business | Oil & Gas

Abu Dhabi firm wins Dh500m US contract

Oderco Oil Equipment Company has won a Dh500 million order from an unidentified US-based drilling contractor for the supply of 10 onshore rigs, the Abu Dhabi-based company's chairman said yesterday.

  • By Himendra Mohan Kumar, Staff Reporter
  • Published: 23:35 August 3, 2008
  • Gulf News

Abu Dhabi: Oderco Oil Equipment Company has won a Dh500 million order from an unidentified US-based drilling contractor for the supply of 10 onshore rigs, the Abu Dhabi-based company's chairman said yesterday.

"We will be supplying one rig every month, January 2009 onwards. The last rig will be supplied by October next year," Dr. Samir Ghalayini told Gulf News by telephone.

He said construction of the rigs to be delivered under the order has already begun. Ghalayini declined to name the US contractor, citing confidentiality.

He said the contractor will deploy the rigs manufactured by Oderco for drilling in the US oil and natural gas fields.

Ghalayini said Oderco started operations in 2005 and is based in the Industrial City of Abu Dhabi (ICAD-I).

It currently manufactures both offshore and onshore rigs. Until now, Oderco has built nine rigs and sold them to buyers in Saudi Arabia, Oman, Kuwait and Singapore.

Ghalayini said Oderco won the US contract primarily owing to its capability to execute major projects and its cost competiveness.

"There were bids for this contract from companies in the US and Europe. We won the contract because of our capability to build rigs at a lower price than our competitors and due to the technical features offered by our rigs," said Ghalayini.

He acknowledged the infrastructural support given to Oderco by the ICAD, which helped the local private company seal the contract.

"Rigs once built will be shipped from Abu Dhabi to Houston. The US company will take the delivery of the rigs there," said Ghalayini.

Ghalayini said depending on the successful execution of the US order, the Texan drilling contractor has promised more orders to Oderco for rigs.

Gulf News
Business Editor's choice
Quick Access

  1. Markets

  2. Economy

  3. Property

  4. Aviation

Business Top Stories

  1. Fraud threatens digital advertising landscape

  2. Australia following the wrong US model

  3. Global insurers run risk of mounting payouts

  4. Xi signs Venezuela resource deals

  5. Saudi bourse to open up