Aabar's drilling subsidiary, Dalma Energy, in major expansion drive

The new rigs have a capacity of 2,000 HP (horse power) and can drill up to a depth of more than 20,000 ft. They will increase Dalma's rig fleet to 22. The purchase caps a US $250 million fleet expansion plan which Dalma Energy had undertaken in October 2004. Dalma Energy has also recently opened its offices in Libya as it seeks to expand its operations in the region.

Making the announcement at ADIPEC 2006 (Abu Dhabi International Petroleum Exhibition & Conference), the region's largest oil and gas trade show being held November 5 - 8, 2006 under the patronage of HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, Khaled Ahmed Salem Al Ameri, Director, Dalma Energy said: "The four new land rigs for Dalma have been built in China. One of them is enroute to Saudi Arabia for commissioning on a contract with Saudi Aramco. The three remaining rigs will be delivered by the first quarter of 2007".

Dalma has a strong track-record in the drilling business, having successfully implemented contracts for Saudi Aramco, Petroleum Development Oman, Qatar Petroleum and Gujarat State Petroleum Corporation Limited, among other leading oil and gas companies.

"We have achieved a rig utilization of one hundred percent and doubled the size of our operations in less than 18 months since our acquisition by Aabar last year. This aggressive growth will continue. We are committed to supporting oil companies in the region as they seek to increase production in line with global demand", added Al Ameri.

Of the 18 rigs owned and operated by Dalma Energy currently, seven are in Saudi Arabia, eight in Oman, two in India and the remaining rig is in Qatar.

According to the 2006 ReedHycalog Rig Census survey, the global utilization of land rigs such as those operated by Dalma Energy has gone up to 95% in 2006 as compared to 83% in 2005.

The survey notes that "record oil and gas prices have spurred rig owners to mobilize additional units. Not only has the market upswing encouraged contractors to reactivate or refurbish their inventory of older units, rig building programs have also been established and are now coming to fruition".

Dalma's operations encompass the MENA (Middle East North Africa) and Sub-Continental region and is using its participation at ADIPEC 2006 to showcase the company's successful track-record in drilling operations before an international audience of oil and gas industry executives participating at ADIPEC.