RE: SOME THOUGHTS9 Mar 2020 15:00
RNS of 20 Nov 2019 confirms well heads procured.
Highlights
· Master Service Agreement entered into with BakerHughes GE
· Purchase of wellheads and 36" conductor casing for delivery in March 2020, consistent with schedule for spudding the well
Details
In August 2019, Following extensive technical discussions and mutual due diligence, BPC received proposals (including pricing) for a range of well-related equipment, including wellheads and tubulars, for the intended drilling 2020 campaign. At that time, and as previously announced, BPC issued a notice of award to BakerHughes GE for provision of that equipment, as a precursor step to a detailed contract as is customary in the industry.
As contemplated, and following a further period of negotiation and collaborative work, BPC has now entered into a Master Services Agreement ("MSA") with BakerHughes GE for the provision of specified equipment.
Further, and pursuant to the MSA entered into, BPC has now also placed a first purchase order with BakerHughes GE, for a wellhead set, a contingency well head set, and 36" conductor casing. The wellhead set is being manufactured to order for BPC's intended well, and delivery is expected in a timeframe consistent with the current drilling schedule.