Rowan Companies, Inc. has recently reported that the company has announced today that its wholly owned manufacturing subsidiary, LeTourneau Technologies, Inc. (LTI), has entered into a contract with Weatherford Drilling International (BVI) Ltd. to construct four new 2000 horsepower land drilling rigs, at a total value of $74.4 million.
Construction is expected to start immediately with delivery of the first land rig in the third quarter of 2008, and should be completed by July of 2009. LTI will assemble the land rigs from its Jebel Ali, Dubai yard, located in the United Arab Emirates.
In making this announcement, Danny McNease, Rowan’s Chairman, President and Chief Executive Officer, stated, “We are pleased that Weatherford has involved LTI in the growth of their integrated land drilling business. These land rigs will feature LTI’s new AC drive technology and key drilling equipment that is well respected in the industry for providing high performance, reliability and low maintenance operations. This latest contract helps confirm LTI’s growing global position and commitment to delivering quality equipment on time.”
Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. The Company’s manufacturing division, LTI, produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.