DLS Archer Ltd. (“DLS”) and YPF S.A. (“YPF”) agreed on a new five-year drilling contract for three High Spec drilling. These rigs, currently under contract with YPF, will continue working in Vaca Muerta. As part of this new contract, DLS will be upgrading the equipment and technology of these rigs to improve their capabilities with the objective to meet technical specifications for the extended well design that Non-Conventional areas require. The estimated total contract value for three rigs over five years is approximately USD 200 million. Furthermore, the contract stipulates that two more rig upgrades could be added to the contract at a later stage.
Greg Helmen, Vice President of Land Drilling, comments:
“DLS has been providing drilling services to YPF for more than three decades, and we are proud to have been chosen to continue this strong partnership in developing one of the most prolific shale plays in the world. There has recently been a drive towards high specification rigs with capabilities to drill horizontal phases of more than 3000 meters in Vaca Muerta. These rig upgrades will secure Archer’s position as the leader in drilling services for unconventional plays in Argentina, and we look forward to continuing to provide safe and efficient operations to YPF for many more years to come.”