Published By : 14 Jan 2014 | Published By : QYRESEARCH
The San Antonio-based Pioneer Energy Services has renewed its contract with the Columbian oil company called Ecopetrol for its drilling activities. The renewal of the contract is for all the eight of the drilling rigs in South America.
According to the drilling-services company, Pioneer was previously in charge of operating six rigs of the Ecopetrol Company. This contract expired on December 31, 2013 and was renewed during this time of the year. However, the renewed contract carries a one-year fixed term agreement with them.
Pioneer\'s President and CEO Wm. Stacy Locke is glad to do business with Columbia\'s largest oil company Ecopetrol has been at its strong front in the market, and thus, Pioneer is looking forward to continuing working on this relationship for a long-term. Ecopetrol\'s main reason behind the renewal of contracts with Pioneer was its fact to believe that Pioneer had performed brilliantly and had proven exceptional safety records throughout their tenure.
Nonetheless, the new contracts require the Pioneer to do a few necessary things in order to keep the business growing stably and healthily. This involves upgrading one of its rigs from 1,000 horsepower to 1,500 horsepower and set up another rig with an automatic catwalk. The upgrades cost around $7 million.
Pioneer will continue operating the six oil rigs with Ecopetrol as it used to previously under contract. It is planning to set up the other two rigs and make it functional by the end of the first quarter.