News

EDC plans to bid for geothermal drilling contract in Kenya

Alexander Richter 5 Jan 2010

In plans to expand overseas, Philippines EDC is looking at joining the bid for a geothermal drilling contract in Kenya.

In local news from the Philippines it is said that “Energy Development Corp. (EDC) is looking at joining the bid for a geothermal drilling contract in Kenya.

Richard Tantoco, EDC president and chief executive, told reporters that the company has been invited to participated in the bidding for the Kenya contract.

Tantoco, however, said they have yet to decide if EDC will accept the invitation. “There’s nothing definite yet, but we have been invited to bid in Kenya,” he said.

One of the major targets set by the company this year is to expand its exposure overseas. “One of our goals is to advance the technical side of our drilling services by expanding our international operation to eventually generate more income from it,” Tantoco said.

Tantoco further said they see the company’s local operations to chip in profit in the next four years, and after which EDC will need to explore overseas opportunities.

“It’s too early to give specific details for our overseas expansion,” Tantoco pointed out.

For this part, Paul Aquino, EDC vice chairman, confirmed that going overseas is part of the company’s overall thrust. “It’s part of our general plan. But at present, we cannot give details on how we will go about our expansion in the international front,” he said.

EDC earlier said it wants to establish presence in Indonesia, South Asia and in the Middle East.

In June 2009, EDC was the preferred drilling contractor of Lihir Gold Ltd. (LGL) in Papua New Guinea after the company signed a new contract worth $16.11 -million.

The one-year contract covers the drilling of seven geothermal wells, three dewatering wells and one work-over well. The deal includes the supply of third-party drilling services such as mud engineering, well cementing and directional drilling.

During the contract signing held in Lihir Island, LGL mine manager John Flynn expressed his satisfaction at the drilling and safety performance of EDC on the last drilling campaign and said he is looking forward to a new campaign.

In 1977, EDC started drilling services for an oil and gas drilling contract in Indonesia. Since then it has deployed drilling rigs, drilling consultants and rig maintenance specialists to Indonesia, Bangladesh and Papua New Guinea.”

Source: Business Mirror