Oil and gas producer Origin Energy Ltd
(ASX:ORG) says its 50/50 joint venture with ConocoPhillips, Australia Pacific LNG has awarded a $220 million drilling and workover rig contract to Savanna Energy Services.
The contract is for the provision of two proprietary hybrid drilling rigs and two workover rigs for a five year term from September 2010.
Origin general manager of upstream oil and gas, Paul Zealand says the contract will help the joint venture reach a target of between 300 and 500 wells a year over the life of the project.
Director of the Australia Pacific LNG Project Todd Creeger says the new rigs reduce the environmental impact on the land as they require a much smaller footprint for each well.
Final investment decision for the Australia Pacific LNG project is expected at the end of 2010.
Origin Energy posted net profit after tax of $6.9 billion for fiscal 2009.
