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CONTACT DETAILS:
Mr. Ibrahim Al-Othman
Name
Title
Chief Executive Officer
Company
Gulf Drilling International (“GDI”)
Telephone Number
(974) 4463-7301
Fax Number
(974) 4463-7303
Document Reference
DOCUMENT DETAILS:
GDI/PR/140128 English.docx
For Immediate Release
January 28, 2014
PRESS RELEASE
GDI signs five-year contract with
Occidental Petroleum of Qatar valued at QR 830 million
DOHA, QATAR - Gulf International Services (“GIS” or “the group”; QE: GISS), the largest service group in
Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance,
fund management, onshore and offshore drilling, accommodation barge, helicopter transportation,
and catering services confirmed that under the patronage of H.E. Dr Mohammed bin Saleh Al Sada,
Minister of Energy and Industry, Gulf Drilling International (“GDI”), a joint venture of GIS, signed a
new five-year contract with Occidental Petroleum of Qatar Ltd. (“Oxy Qatar”) for the jack-up drilling
rig, Al-Wajba, to take effect on 1st January 2015, when the current contract expires.
The contract, valued at QR 830 million, was signed by Mr. Steve Kelly, President and General
Manager of Oxy Qatar, and Mr. Ibrahim Jassim Al Othman, Chief Executive Officer of GDI. It was
attended by H.E. Dr Al Sada and Mr. Saad Sherida Al Kaabi, Director of Oil & Gas Ventures at Qatar
Petroleum.
Al-Wajba first went to work for Oxy Qatar in 2008 and has remained continuously on contract to
them since then. In addition to Al-Wajba, GDI has two more rigs under contract to Oxy Qatar,
making Oxy one of GDI’s most significant clients.
H.E. Dr Mohammed bin Saleh Al Sada, who is also the Chairman of GIS, congratulated GDI and Oxy
Qatar for the signing of the agreement, which he described as a testament of GDI’s strength and
reliability.
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Dr. Al-Sada said, “The extension of this contract highlights GDI’s mission to become a world class
drilling company with great emphasis on safety, operational efficiency, and high performance.”
Oxy took this opportunity to recognize GDI for the excellent safety record, operational performance
and equipment reliability of its two jack-up drilling rigs currently in operation, Al-Rayyan and AlWajba. Mr. Steve Kelly, President and General Manager of Oxy Qatar, said: “This is a proud moment
for Oxy and for GDI and another testament to the commitment of both companies in their quest for
excellence. It is a tribute to the professionalism and dedication of GDI’s leadership and employees
that we are able to recognize its achievements in this way.”
Mr. Kelly added: “The signing of this extended-term contract for the Al-Wajba drilling rig will
support our development plans over the next five to six years. Oxy has made it a priority to support
the establishment of GDI as a world-class drilling company. Building this capability in-country is a
key strategy of our partner Qatar Petroleum, and one that we support wholeheartedly.
We
continue to demand the highest standards in safety and technical performance in order to
implement our development plans successfully and meet the challenging goals we have set.”
Mr. Al Othman of GDI said: “We are pleased to sign a new contract for Al-Wajba with Oxy Qatar,
which demonstrates the resilience of our strong working relationship. For this achievement we are
thankful to H.E. Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry, for his
continuous support to GDI.”
Mr. Al Othman concluded by saying: “GDI’s relationship with Oxy Qatar has proven to be mutually
beneficial as its rigs are being used for drilling and work-over of wells and in support of Oxy Qatar’s
Minimum Facilities Platforms (MFP), which are fast track solutions that allow Oxy Qatar to rapidly
expand capacity building of offshore platforms, thereby saving time and cost. I am thankful to Oxy
for having recognized our achievements and GDI is proud to partner with Oxy Qatar and to add
value to their development plans.”
Over the last several years, GDI rigs have been used exclusively by Oxy for the development of the
Idd El Shargi (North and South Domes) and Al Rayyan fields, located offshore Qatar. Since the start
of its drilling operations in Qatar in 1995, Oxy has considered the Al-Rayyan and Al-Wajba rigs to be
among the best it has ever used.
The rigs have worked under an incentive system with a focus on proactive measures that
historically have been shown to improve key areas of performance. Meaningful, realistic targets are
established and achievements in attaining those targets are rewarded. The program in Qatar is
notable for the complete buy-in of Oxy and GDI personnel in regard to achieving their targets and
the “win-win” effect of providing stakeholders with the opportunity to be recognized for a job well
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done. This program has contributed to a 40% reduction in well duration since the GDI-Oxy
collaboration began in 2008.
GDI has adopted a strategy of securing long term contracts with clients to provide them with
stability of cost and uninterrupted operations. Continuity drives performance and safety standards,
and permits innovative solutions that are more cost-effective.
GDI will nearly double the size of its total rig fleet as part of its business expansion plan. By the end
of 2015, GDI will have a total of 18 onshore and offshore drilling rigs (in just three years). This will
reflect positively on the strategic goals the company has set for itself.
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For more information about this press release, email [email protected] or visit www.gis.com.qa
DISCLAIMER
The companies in which Gulf International Services QSC directly and indirectly owns investments are separate entities. In this document, “GIS” and
“the group” are sometimes used for convenience in reference to Gulf International Services QSC.
This document may contain forward-looking statements concerning the financial condition, results of operations and businesses of Gulf International
Services QSC. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future
expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause
actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred
from these statements.
There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and
natural gas, (b) changes in demand or market conditions for the group’s services, (c) loss of market share and industry competition, (d)
environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market
conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking
statements contained herein. All forward-looking statements contained in this press release are made as of the date of this press release, as marked
on the Cover page.
Gulf International Services QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other
detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained
herein. Gulf International Services QSC, its subsidiaries, joint venture and associated company are further in no way obliged to update or publish
revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be
inaccurate as a result of new information, future events or any reason whatsoever. Gulf International Services QSC does not guarantee the accuracy
of the historical statements contained herein.
GENERAL NOTES
Gulf International Services QSC’s accounting year follows the calendar year. No adjustment has been made for leap years. Where applicable, all
values refer to Gulf International Services QSC’s share. Values expressed in QR billions and percentages have been rounded to 1 decimal point. All
other values have been rounded to the nearest whole number. Values expressed in US $’s have been translated at the rate of US $1 = QR3.64.
DEFINITIONS
CAGR: 5-Year Compound Annual Growth Rate (from 2010 actuals) • Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to
Equity: (Current Debt + Long-Term Debt) / Equity x 100 • EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation calculated as [Net
Profit + Interest Expense + Depreciation + Amortisation] • Energy (Insurance): Refers to the Energy, Plant and Construction, Marine, Fire and Other
lines of business • EPS: Earnings per Share [Net Profit / Number of Ordinary Shares outstanding at the year end] • Free Cash Flow: Cash Flow From
Operations - Total CAPEX • Interest Cover: (Earnings before Interest Expense + Tax) / Interest Expense • Net Debt: Current Debt + Long-Term Debt
- Cash & Bank Balances • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings multiple [Closing market capitalisation / Net
Profit] • ROA: Return On Assets [EBITDA/ Total Assets x 100] • ROCE: Return On Capital Employed [Net Profit before Interest & Tax / (Total Assets Current Liabilities) x 100] • ROE: Return On Equity [ Net Profit / Shareholders’ Equity x 100] • Utilisation (Rigs): Number of days under contract /
(Number of days available - Days under maintenance) x 100
ABOUT GDI
Gulf Drilling International QSC was incorporated in 2004 as a joint venture between Qatar Petroleum (60%) and Japan Drilling Company (40%).
Subsequent to exercising a share option provision within the joint venture agreement, QP increased its stake to 69.99% and then transferred this
shareholding to GIS. GDI has no subsidiaries or associates, and is not party to any subordinate joint venture arrangements. The company’s
authorised and issued share capital is QR 375.7 million.
The registered head office is located at Main Airport Road, Building 4718, P.O. Box 9072, Doha, state of Qatar. Total headcount is 839, split between
head office, onshore and offshore staff.

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