- High Arctic Energy Services (HWO) has agreed to terms with its principal customer in Papua New Guinea (PNG) for a three-year contract renewal
- This covers customer-owned Heli-portable Drilling Rig 103 and High Arctic’s services which involve the supply of personnel and items to support the drilling operations
- Recently, High Arctic had executed some business relationships with corporations like TotalEnergies and ExxonMobil
- High Arctic is an energy services provider and a market leader in Papua New Guinea where it provides drilling and specialized well-completion services
- High Arctic Energy Services Inc. opened trading at $1.55
High Arctic Energy Services (HWO) has agreed to terms with its principal customer in Papua New Guinea (PNG) for a three-year contract renewal.
This covers customer-owned Heli-portable Drilling Rig 103 and High Arctic’s services which involve the supply of personnel and items to support the drilling operations
The renewals took effect on August 1, 2022, and include the option to extend the contracts on the same terms and conditions beyond July 31, 2025.
In late 2021, High Arctic’s principal PNG customer merged with one of the largest energy exploration and production companies operating in the Asia Pacific, to create a regional champion of quality, size and scale. Both companies have extensive history in PNG.
The company has large stakes in the two LNG projects and operatorship of all producing PNG oil fields and several gas fields supplying the existing PNG-LNG export facility.
Key technical personnel have started deployment and work is underway to prepare Drilling Rig 103 and its leapfrog unit for recommencement of drilling in early part of the last quarter of 2022.
This contract announcement is coming on the heels of recent positive developments highlighting the expansion potential for LNG production in PNG.
On July 20, 2022, TotalEnergies, operator of the Papua-LNG joint venture, announced the commencement of upstream FEED studies in PNG, targeting a final investment decision on the two-train Papua-LNG project by the end of 2023 and beginning of production in 2027.
In addition, earlier this year, ExxonMobil, operator of the PNG-LNG joint venture, announced the signing of a gas agreement for the development of the P’nyang gas field in the Western Province of PNG, which is expected to result in the addition of another train to the world-class PNG-LNG export facility.
“Papua New Guinea is key to High Arctic’s long-term business strategy,” Mike Maguire, CEO of High Arctic, commented.
“There have been significant LNG investments in PNG made by large oil and gas companies, and High Arctic is positioned well to support future investments given high barriers to entry due to the technical expertise required to operate the heli-portable drilling rigs in remote locations,” he added.
High Arctic is an energy services provider and a market leader in Papua New Guinea. It provides drilling and specializes in well completion services and supplies rental equipment, including rig matting, camps, material handling and drilling support equipment.
High Arctic Energy Services Inc. opened trading at $1.55.
