Ensco International Inc will move a jack-up rig to Saudi Arabia from Qatar, bringing the number of the company's rigs contracted to the Saudi Aramco up to four, according to an Ensco document.
The three-year contract for the Ensco 96 rig, scheduled to start November 8, underscores Saudi Aramco's plans to expand its oil production, industry analysts say.
The move means that the Saudis are 'serious about adding rigs and ramping drilling,' said the Houston-based consultancy Pickering Energy Partners in a report dealing with the subject.
The deal follows Rowan Companies Inc's (RDC) transfer of five jack-up rigs into the Middle East under three-year contracts from the Gulf of Mexico, sources said.
The Saudi ramp-up comes amid tight Middle East rig supply, with a projected demand for 20 additional rigs in early 2006 from Saudi Arabia and Qatar, Ensco chief executive Carl Thorne said.