Viking O&M Secures Rig Contract from a Chinese Firm

 

Viking’s subsidiary Viking LR2 will charter the 1,500-bhp train-type land rig and related drilling equipment system to a Chinese land rig specialist. It will be immediately deployed on a North African oilfield concession jointly owned by a South Asian energy operator and the local energy authority.

 

The first land rig was acquired from and leased back to the same charterer in September 2014 which used it to uncover natural gas. After positive assessment of hydrocarbon potential in the locality, the second rig was chartered to accelerate drilling activities.

 

It will be immediately deployed on a North African oilfield concession jointly owned by a South Asian energy operator and the local energy authority. 

 

Daniel Lin, Executive Director of Viking, said, “We are excited that our charterer is adding a second rig after the first rig. The second charter enhances our portfolio of earnings-accretive assets in a market environment of low oil prices. We intend to capitalize on our track record to build up our charter fleet to enhance shareholder value.”

 

Viking expects to recognize charter income from its second rig in the second half of the financial year ending 31 December 2015.