Pioneer Energy Services renews drilling contracts with Ecopetrol
SAN ANTONIO, Texas -- Pioneer Energy Services has renewed its drilling contracts with Ecopetrol for all eight of its drilling rigs in Colombia effective January 1, 2014. Pioneer recently operated six rigs for Ecopetrol under contracts that expired on December 31, 2013. The renewed contracts have a one-year fixed term and a slight improvement in day rates as compared to the current contracts.
"We are very pleased to renew these contracts for our eight drilling rigs in Colombia with Ecopetrol," said Wm. Stacy Locke, president and CEO of Pioneer Energy Services. "Colombia has been a strong market for us since we began operating there in 2007, and we look forward to continuing our good working relationship with Colombia's largest oil company."
The new contracts require Pioneer to upgrade one of its drilling rigs from 1,000 horsepower to 1,500 horsepower and outfit another rig with an automatic catwalk at a total estimated cost of approximately $7 million. After these upgrades are complete, all eight rigs in Colombia will be 1,500 horsepower electric rigs with walking or skidding systems, top drives and automatic catwalks.
Pioneer's six drilling rigs that are currently working for Ecopetrol will continue working uninterrupted under the renewed drilling contracts. The seventh rig is expected to begin working in late March after it completes its current contract with Ecopetrol in another region of Colombia. The eighth rig will begin working for Ecopetrol in March after the 1,500 horsepower upgrade is complete.