C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),one of the leading providers of oil and gas field services in Russia and Kazakhstan, signed a framework agreement with Gazprom Neft on drilling and hydraulic fracturing services on 17 June 2014. The agreement guarantees full utilization of four new drilling rigs and one new fracturing fleet until end of 2016 and foresees conclusion of respective service agreements between the operating subsidiaries of Gazprom Neft and C.A.T. oil.
The new drilling and fracturing capacities will be successively deployed in the field from September to December 2014 and are part of C.A.T. oil’s growth strategy. In November 2013, C.A.T. oil announced its 2014-16 investment program of EUR 390 million aiming at expansion of its operating capacities by around 33% for fracturing, 55% for sidetracking and 170% for drilling by the end of 2016 compared to the end of 2013. For 2014, C.A.T. oil has ordered six drilling rigs, four sidetracking rigs and one fracturing fleet. Execution of the program and manufacturing of the ordered new capacities are fully on schedule.
Manfred Kastner, CEO of C.A.T. oil, commented: “We appreciate the framework agreement signed with Gazprom Neft, one of our longest-standing customers. The agreement provides planning security and improves our mid-term revenue visibility. At the same time it demonstrates the industry’s accelerating demand for technologically advanced services and the interest to secure capacities over a longer period of time. Industry trends remain encouraging and we continue to experience a supportive operating environment laying the basis for a successful 2014.”
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