(Alliance News) - Bahamas Petroleum Co has signed a works contract with Baker Hughes for drilling in the Bahamas in 2020, it said on Wednesday.
Bahamas Petroleum had in August said it received a number of proposals for the supply of well-related equipment for the 2020 campaign and had issued an early notice awarding the contract to Baker Hughes, part of General Electric Co.
A master service agreement has now been signed, and Bahamas Petroleum has put in a first purchase order for a wellhead set, a spare, and a 36-inch conductor casing.
Chief Executive Simon Potter said: "Finalising the master service agreement with Baker Hughes GE has enabled us to reach a long-awaited and significant milestone for our company: placing an order for the wellheads that have been made to order for our exploration well in the Bahamas.
"In ordering these high value, critical path, long-lead items, along with the other multiple work streams ongoing, management is taking demonstrative steps to ensure we remain on track for drilling to commence as per our previously announced drill schedule."
Earlier in November, Isle of Man-based Bahamas Petroleum confirmed had it raised over USD11 million to go towards funding the drilling work.
Shares were up 3.5% on Wednesday in London at 1.97 pence each.
By George Collard; georgecollard@alliancenews.com
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