Helmerich & Payne (H&P) has entered into new drilling contracts with YPF Sociedad Anonima. The company plans to deploy 10 existing FlexRigs from the US to work in the Vaca Muerta play in the Neuquen Province in Argentina under five-year term contracts. The first rig is expected to commence drilling operations during Q4 2014. The remaining nine rigs are expected to be sequentially deployed, reaching full utilization by the end of Q2 2015.
“We are pleased to announce a growing presence in one of the most promising unconventional plays outside of the US,” H&P President John Lindsay commented. “These contracts allow us the opportunity to continue our efforts to demonstrate the FlexRig value proposition in key markets around the world.”
H&P’s fleet includes 319 land rigs in the US, 29 international land rigs and nine offshore platform rigs. Of the 319 US land rigs, 275 are currently contracted. Twenty-two of the 29 international land rigs are currently active, with nine rigs currently located in Argentina (of which eight are active). Once the deployment of the additional 10 rigs is completed, the company is expected to have a total of 19 rigs in Argentina. Eight offshore platform rigs are currently active in the Gulf of Mexico.
FlexRig is a registered trademark of Helmerich & Payne.