Parker Drilling was awarded an extension and additional rig to its operations and maintenance (O&M) contract on Sakhalin Island, Russia. The prior contract term was set to expire in Q3 2017 and covered operating and maintaining three customer-owned rigs in support of the Sakhalin-1 Project. The O&M contract term now extends through June 2019 and also covers a newly constructed fourth customer-owned extended reach drilling (ERD) rig. The extension, inclusive of the additional new rig, is expected to add in excess of $180 million in revenue backlog over the course of the contract and brings the company's operations on Sakhalin Island to a total of five rigs, including one Parker-owned rig.
"Parker Drilling has an unwavering commitment to being the most innovative, reliable, and efficient drilling contractor, always with our eyes on reducing customers' risks and costs," said Gary Rich, the Company's Chairman, President and CEO. "Our growth in this division is a testament both to the ERD successes we have achieved with our customer on Sakhalin Island as well as the support we have provided to our customer through the design and construction of the new rig. Even in the face of our industry's significant challenges and headwinds, we have the opportunity to find new ways to align our strategy and operations with our customers' needs."