Alexander Djaparidze « Russian Oil & Gas News

ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

EDC Announces New LUKOIL Framework Agreement

Tuesday, April 2nd, 2013

Eurasia Drilling Company Limited announced today that it has signed a new long-term framework agreement for onshore drilling and completion operations with OAO LUKOIL.

The new framework agreement, which concludes on December 31, 2015, defines pricing methodology and minimum work volumes (metres drilled) for exploration and production drilling in Russia. Pursuant to the new agreement, EDC’s services will be provided either on a general contractor basis (per metre basis) or day-rate basis depending on the complexity of drilling. In addition, a management steering committee will be established comprising of members from LUKOIL and EDC. The committee will review all aspects related to drilling complex wells as defined by the new framework agreement.

Dr. Alexander Djaparidze, EDC’s Chief Executive Officer, commented,

“We are pleased to have signed a new framework agreement with our largest customer LUKOIL, which further reinforces our already strong relationship. This agreement reflects both LUKOIL and EDC’s mutual interest to continue our long-term cooperation as this is our third long-term framework agreement since 2005. The agreement’s objective is to ensure that our customer achieves its three year onshore drilling plans in the most efficient way, which EDC is well positioned to deliver. The agreement provides EDC with a strong and predictable base for growth which will support our financial and operational targets.”

Source

Tags: Alexander Djaparidze, EDC, eurasia drilling, Eurasia Drilling Company, Lukoil
Posted in EDC Announces New LUKOIL Framework Agreement | No Comments »

Get Shareaholic

Eurasia Drilling Signs new LukOil Contract with Net Income Up 35%

Tuesday, April 2nd, 2013

Russia’s top oilfield services company Eurasia Drilling (EDC) said on Tuesday its 2012 net income jumped 35 percent, year-on-year, to $382 million on strong demand from oil firms fighting output declines at depleted fields.

* Net income rises 35 pct to $382 mln in 2012

* EBITDA up 31 percent to $790 mln

* Revenues rise 17 percent to $3.2 bln

* Says signed new deal with LUKOIL on drilling and production

The company also said it had signed a new agreement with Russia’s second-largest oil producer Lukoil for onshore drilling and completion operations, running through to the end of 2015.

EDC’s London-traded shares rose more than 2 percent in early trade.

The group’s revenues increased 17 percent to $3.2 billion last year, while earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 31 percent to $790 million, slightly above prior guidance.

“Outstanding performance in all our business segments enabled us to achieve another year of record financial and operational results in 2012,” Alexander Djaparidze, EDC’s chief executive officer, said in a statement.

As Russia’s biggest driller, EDC reflects trends throughout the oil industry, which is struggling with declines in West Siberia and is faced with the cost and risk of developing new reserves in remote Eastern Siberia and the Arctic.

The potential for the company is seen in so-called ‘tight’ oil production, which may add around 2 million barrels per day to total Russian oil production, the world’s largest at 10.46 million barrels per day, analysts estimate.

New tax incentives for hard-to-recover oil are due to be implemented next year.

In January the company said its total metres drilled rose 26.6 percent to 6.05 million metres in 2012, a record result for Eurasia Drilling, after Russian oil companies stepped up operations.

As a result, the company’s Russian market share rose to around 29 percent last year from 25 percent in 2011.

Source

Tags: Alexander Djaparidze, edc group, eurasia drilling, Eurasia Drilling Company, Lukoil
Posted in Eurasia Drilling Signs new LukOil Contract with Net Income Up 35% | No Comments »

Get Shareaholic

Eurasia Drilling Financial Results

Thursday, August 25th, 2011

Eurasia Drilling Company Limited, the leading onshore and offshore drilling service provider in the CIS, today released its Interim Consolidated Financial Results, prepared in accordance with US GAAP, for the six month period ended June 30, 2011.

The reviewed 2011 Interim Consolidated Financial Statements for the six months ended June 30, 2011, and the Management Report on 2011 Interim Period Results, can be found under the following link:

http://www.eurasiadrilling.com/financial_information.html

1H 2011 FINANCIAL HIGHLIGHTS:

Top line revenue was US$ 1,265 million for the 2011 Interim period, up 47% compared to US$ 862 million earned during the corresponding period of 2010;
EBITDA was US$ 267 million for the 2011 Interim period, up 29% compared to US$ 206 million earned during the corresponding period of 2010;
EBITDA margin was 21.1% for the 2011 Interim period, which is below the EBITDA margin for the same period in 2010, which was 23.9%;
Net Income was US$ 151 million for the 2011 Interim period, up 44% compared to US$ 105 million earned during the 2010 Interim Period;
We paid dividends for the year ended December 31, 2010 in the amount of $ 0.31 per share;
Capital expenditures for property, plant and equipment for the six months ended June 30, 2011 were US$ 215 million compared to US$ 119 million for the corresponding period of 2010;

Mr. W. Richard Anderson, EDC’s Chief Financial Officer, commented,
“We are delighted to have delivered such strong results with significant increases in revenues, EBITDA, net income and EPS. This reflects our leading position in the high growth Russian market where we deliver enhanced service and production efficiency. Although it involves higher levels of joint development with external partners, which affects EBITDA margins, the successful development of our horizontal drilling business provides an important strategic growth opportunity. We are delivering an excellent level of growth across our operations and we are, therefore, optimistic for the rest of the year and committed to delivering strong results in line with our expectations. “

1H 2011 OPERATIONAL HIGHLIGHTS:

• Drilling output for the 2011 Interim Period was 2.325 million meters, 18% above the output achieved in the same period of 2010, which was 1.975 million meters;
In April 2011 we completed the transaction with Schlumberger to exchange assets and to enter into a Strategic Alliance in the CIS;
Drilling assets acquired from Schlumberger contributed 8 percentage points to the growth of our drilling volumes during the 2011 Interim period;
Horizontal meters drilled during the first six months of 2011 more than doubled compared to the corresponding period of 2010 and amounted to 365 thousand meters;
Exploration drilling volumes were up 9% during the Interim period of 2011 compared to the corresponding period of 2010;
Reduced our reliance on our largest customer during the first six months of 2011 with its share comprising 54% of our total drilling volumes compared to 60% in the corresponding period of 2010;
Construction of new jack-up drilling rig by Lamprell to be used in our Caspian Sea operations continues on schedule;
Our ASTRA jack-up rig was fully employed in Kazakh and Russian waters of the Caspian Sea; two wells were drilled;
Our Trident 20 jack-up rig drilled one exploration well and performed one sidetrack operation for our client, Petronas Carigali, in Turkmen waters of the Caspian Sea;
Continued operations on LUKOIL’s Yu. Korchagin field platform in the Caspian Sea, drilling three horizontal development wells;

Dr. Alexander Djaparidze, EDC’s Chief Executive Officer, added,
“The Russian onshore drilling market continues its rapid growth with 11% higher drilling volumes in the first half of 2011 compared to the same period in 2010. EDC is outpacing the market, showing 18% growth. In the offshore business the addition of the Trident 20 jack-up rig and a good performance from our existing operations combined to double revenue in the segment during the period. EDC is uniquely positioned through its size, its cooperation with Schlumberger and financial strength, to support our customers in achieving their goals. This will become especially important as we enter the new tendering season for 2012. We will continue to follow our strategy of international expansion, pursuing value adding acquisitions where appropriate.”