Archer is pleased to announce that its subsidiary in Argentina, has been awarded
a total of USD 125 million of additional drilling
services to Pan American.
One contract is a 2.5-year extension, with improved commercial terms, for the
three drilling rigs operating in Pan American´s Cerro Dragon Field. The contract
extension has a value of approximately USD 100 million and runs until the fourth
quarter of 2027.
The other contract is for one additional drilling rig in Vaca Muerta. This
contract has a value of USD 25 million over two years. The rig will mobilize in
the first quarter 2024.
"Due to the economic instability, Argentina is challenging from an ownership
perspective. However, the oil and gas activity in the country is good, and the
new political leadership has expressed a clear intent to enhance drilling and
production activities. These new contract awards significantly enhance the
visibility and profitability of our local operation, and we believe this over
time will result in further value creation for Archer's shareholders," says Dag
Skindlo, CEO of Archer.
"Pan American is a leading player in the oil and gas industry in Argentina and
this contract extension reflects their confidence in Archer's ability to deliver
safe and cost-effective operations. This partnership reflects our dedication to
excellence, safety, and sustainability in every facet of our operations. We are
excited about the opportunity to continue supporting Pan American with high
quality and efficient drilling services in the years to come," says Gerardo
Molinaro, Vice President Archer Land Drilling.
