SED Energy Holdings, through its wholly owned subsidiary Energy Drilling, has signed a five-year contract with PTT Exploration and Production Public Company Limited (PTTEP) for an offshore drilling campaign using its tender-assist drilling rig, EDrill-2.
The contract has a firm duration of five years, with an additional three-year optional period, and is scheduled to begin in October 2025.
It includes a rate adjustment clause based on a market index, applicable during the final two years of the firm period and throughout the optional period.
The contract will contribute significantly to Energy Holdings’ backlog and earnings visibility, with a potential total value of $250 million, assuming full exercise of the option period and upward index adjustments.
"This long-term contract with a leading regional operator further strengthens our position in the Southeast Asian offshore drilling market. It also adds to our already strong revenue backlog, enhancing our capacity to deliver sustainable cash flows and attractive shareholder distributions over the next several years," added Kurt. M. Waldeland, CEO of Energy Holdings.