Newpark lands $350m Algeria Deal

us%20dollarsUS services player  has landed a three-year deal worth up to $350 million from Algerian state oil company Sonatrach for drilling fluids and related services

Newpark Resources, Inc.  announced that it has been awarded Lot 1 and Lot 3 of  a recent restricted tender by Sonatrach to provide drilling fluids and related services in Algeria.  The award remains subject to final approval by Sonatrach, and the execution of contract documents.  The maximum value of the two lots of this tender is approximately $350 million, covering a term of three years.  Work under this contract is expected to ramp-up beginning in the second half of 2015.

Bruce Smith, President of Newpark Drilling Fluids, stated, “We are extremely pleased with this recent award, which represents the largest contract award in Newpark’s history.  Sonatrach has long been a valued customer to Newpark and this contract award further affirms our value as a leading global provider of high-performance fluids systems.  On an annualized basis, the maximum value of the award represents an increase of more than 200% over our 2014 revenue level with Sonatrach, although the ramp-up in revenues is not expected to begin until the second half of 2015.”

 

Sources: www.upstream.com and www.newpark.com

Link: http://tinyurl.com/nvoyqbz