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Sun 22 May 2011 10:10 PM

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Qatar drilling firm closes deal on $430m credit facility

Gulf Drilling International Ltd says fund will help to finance $538m business expansion plan

Qatar drilling firm closes deal on $430m credit facility
(Getty Images - for illustrative purposes only)

Qatar-based Gulf Drilling International Limited (GDI) said on Sunday it had closed a new $430m credit facility with a syndicate of three banks.

The new credit facility, which has a term of ten years and four months, will be used to finance a projected $538m business expansion plan that includes the construction of two new hi-spec premium jack-up rigs, two new land rigs and the acquisition of a jack-up accommodation barge.

In combination with its existing fleet, which includes five jack-up rigs and four land rigs all operating in Qatar, the company said it is set to become the dominant drilling contractor in Qatar.

Saad Sherida Al-Kaabi, chairman of GDI said: "These new investments will nearly double the value of GDI's existing assets. This will help GDI pursue its strategic plans, to increase its share of Qatar's drilling market and to diversify into complimentary lines of business."

Arrangers of the credit facility are Qatar National Bank, Samba Financial Group, and International Bank of Qatar, the company added in a statement.

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