In recent developments, PV Drilling, through its self-elevating offshore drilling rig, PV DRILLING I, a subsidiary of the PetroVietnam Drilling and Well Services Corporation (PV Drilling), has initiated its drilling services for Northern Gulf Petroleum Pte. Ltd. (NGP) at Block G6/48, the Rossukon field, in the Gulf of Thailand. The drilling contract between PV Drilling and NGP was inked on June 1, 2023, with an approximate duration of 60 days.
This significant move comes on the heels of PV Drilling successfully completing drilling programs for domestic clients such as Thang Long and Vietsovpetro, marking a triumphant return to the Thai drilling market. On October 2, 2023, PV Drilling relocated the PV DRILLING I rig from offshore Vietnamese waters to fulfill its contractual obligations to NGP.
Notably, this isn’t PV Drilling’s first foray into the Thai Gulf. Back in October 2017, the company entered into an agreement to provide its PV DRILLING I rig for drilling operations in Block G10/48, situated in the Gulf of Thailand.
The global oil and gas drilling industry has been experiencing a resurgence and anticipates growth in the near term. As a result, numerous short-term drilling programs, both domestically and internationally, continue to be rolled out. Upon completing its drilling program in Thailand, PV DRILLING I will set its sights on Malaysia, where it will execute a one-year contract with a local client.
By 2024, PV Drilling aims to have four self-elevating rigs and one semi-submersible drilling rig operating continuously in international markets. These expansion plans are a testament to the company’s commitment to providing quality drilling services to meet the growing demand for energy resources worldwide.
According to the September 2023 report by the U.S. Energy Information Administration (EIA), the average crude oil price for 2023 is projected to reach $84 per barrel, with a further increase to $88 per barrel expected in 2024. This forecast represents a clear sign of recovery for the global oil and gas drilling sector and presents an opportunity for PV Drilling to bolster its capabilities and participate in long-term drilling projects, offering competitive service rates in anticipation of the energy market’s growth in the coming years.
PV Drilling’s business operations for the first nine months of 2023 have yielded promising results. The company’s performance has been bolstered by its six rigs operating continuously, achieving a utilization rate of 3.9 rigs, a 0.6 rig increase compared to the same period last year. Furthermore, the rig rental rates have increased by 36% compared to the previous year, showcasing a healthy financial performance.
During the Annual General Meeting of Shareholders held on April 26, 2023, PV Drilling’s leadership pledged to safeguard and develop the company’s assets, ensuring sustainable and stable growth that maximizes benefits for shareholders. With the dedication and achievements seen thus far, it can be concluded that 2023 is a pivotal year for PV Drilling as it accelerates its development and prepares for the upcoming phase of growth.