Zion signs drilling rig MOU with Viking Services

Zion Oil & Gas, Inc. entered into a Memorandum of Understanding with Viking Services BV, to contract for a land-based oil and gas rig with deep drilling capacity and certain other oilfield services and crew for exploration activities within Zion’s Megiddo-Jezreel License area in Israel. Under the scope of work, Viking would provide their Rig 35, or a rig of similar capabilities with at least a 1500 HP engine and the capability of drilling to a depth of 15 000 feet. The agreement would be for a two-year term to drill two wells with an option to drill a third well. The parties anticipate a spud date for the first well (Megiddo-Jezreel #1) in the second half of 2015, subject to Zion securing full regulatory approval from the State of Israel and regional and local governing bodies.

After the primary term of the drilling contract, the parties may jointly establish Zion Drilling, Inc., to initially lease and then possibly acquire and hold title to a drilling rig, either the rig under the primary term or a similar but deeper drill capacity rig. Zion Drilling’s stated business purpose would be to conduct drilling on Zion’s oil and gas licenses within the State of Israel and to the extent not so utilised, to lease out the rig for hire to other Israel-based drilling projects.

Victor G. Carrillo, Zion’s President and COO, states: “We are excited to join forces with Viking Services, a respected international oilfield services company who can help provide integrated service solutions, with equipment and operations located throughout the Eastern Hemisphere including ongoing operations in Israel. We believe this marks the beginning of a lasting business relationship in Israel with Zion and continues to build on the operational footprint that Viking has established with other energy companies in Israel committed to the development of onshore exploration and production of oil and gas.”


Edited from various sources by Joe Green

Published on 26/02/2015


Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


 
 

Related articles

Israel pipe spill measures 5 million t

Eilat-Ashkelon Pipeline Company has measured the spill at 5 million t.

Israel to supply natural gas to Jordan

A group of Israeli energy companies have signed a letter of intent to sell natural gas to Jordan’s National Electric Power Co.

Israel approves floating LNG terminal

Israel's National Planning Council has given final approval for a plan to establish a floating LNG terminal off its Mediterranean coast.

Israel 'prepared' for gas disruption

Israeli Prime Minister Benjamin Netanyahu has stated that Israel is prepared for possible disruptions in its natural gas supplies from Egypt, following the recent unrest in the country that supplies a quarter of its energy needs.

Recommend magazines

  Oilfield Technology