(Alliance News) - i3 Energy PLC on Tuesday announced it has contracted Baker Hughes to carry out upcoming work at the Liberator and Serenity assets.
Baker Hughes is just over 50%-owned by General Electric, and is one of the world's largest oil field services companies.
It will carry out drilling work at both the Liberator and Serenity fields in the UK North Sea as well as for the phase one development at Liberator in 2020.
Baker Hughes' work for i3 will include directional drilling, drilling fluids, mudlogging, formation evaluation, and wellheads.
i3 said Baker Hughes has agreed GBP3 million of oil field service and oil field equipment payments will not be paid until i3 gets first sales from Liberator phase one. However, i3 has issued warrants up to a value of GBP3 million, exercisable at 56.85 pence each.
i3 Chief Executive Majid Shafiq said: "We are very pleased to announce we will be awarding these multi-million dollar oilfield service and equipment contracts to Baker Hughes. We appreciate the confidence Baker Hughes has shown in the quality of the Liberator oilfield in agreeing to receive payments from first oil revenues.
"This transaction will enable us to maximize the allocation of capital resources and contingency towards our 2019 drilling activities, and we look forward to welcoming Baker Hughes as a partner as we establish a mutually beneficial long-term relationship to unlock the value in our assets."
i3 shares were 1.6% higher on Tuesday morning in London at 48.50p apiece.
I3 Energy (I3E)