Arrow Inks Drilling Deal (Australia)

Arrow Energy has signed a $135 million drilling agreement that will deliver four new hi-tech coal seam gas (CSG) rigs and related drilling technology that will create more than 100 new jobs across Queensland.

The all-purpose rigs will significantly improve the efficiency and consistency of directional drilling using innovative technology that allows the rig to be remote controlled.

They will be supplied by Australian-based Sirius Well Manufacturing Services (SWMS) — a new joint venture company formed jointly by Arrow’s parent company Royal Dutch Shell and with China National Petroleum Corporation (CNPC).

Arrow CEO Andrew Faulkner said Sirius would deliver significant long-term advantages for Arrow.

“This is an historic partnership that leverages Arrow’s parent company expertise,” Mr Faulkner said.

“SWMS will strengthen Arrow’s drilling and production future and deliver widespread efficiencies for the life of Arrow’s project.

“We also expect these rigs to help further reduce Arrow’s operational footprint, which is part of our ongoing commitment to coexistence with agriculture.”

SWMS CEO Hu Xin Feng said Sirius was a significant technology investment that would improve the performance of CSG rigs.

“SWMS harnesses CNPC’s cost-efficient drilling and service expertise with Shell’s proprietary drilling technology,” Mr Hu said.

“These rigs consist of a specialised, portable truck-mounted system that will be the best drilling rig available for Australian CSG operations.

“Sirius will allow Arrow to drill faster, more consistent, multiple wells on a smaller footprint while being operated remotely to unlock substantial gas resources in a more cost-efficient way.”

Sirius rigs will feature optimised drilling functions and data monitoring from Real Time Monitoring and Control Centres, within Arrow’s offices.

“While we will maintain a highly skilled presence on site, the Sirius rigs will incorporate all the technical components to allow for remote sensing and control of the rigs,” Mr Hu said.

SWMS will oversee the building and operation of the rigs. They expect to deliver four bespoke rigs in 2013 and ramp up that figure considerably by 2015 with an associated support workforce of about 400 staff.

“There is significant expansion on the horizon as we look forward in supplying rigs that maximise safety and efficiency and minimise the environmental footprint,” Mr Hu said.

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LNG World News Staff, August 16, 2012