Oando Energy Services Limited (OESL), oil field services subsidiary of Oando PLC, has signed a $150 million two-year drilling contract with Nigerian Agip Oil Company (NAOC) for its oilfields in the Niger Delta swamps.

The contract, according to Oando, further demonstrates the company’s commitment to expansion of its upstream operation where it has invested significantly in rigs business in the last two years.

The company said it aspires to becoming a dominant player in the land and swamp rig business in the oil and gas industry.

In the execution of the contract, Oando would be deploying two of its most sophisticated swamp rigs in its fleet with the capacity to drill under high temperatures, high pressure (HTHP) of 15,000 psi and in excess of 30,000ft depth.

Mr. Uche Dimiri, Chief Executive Officer, Oando Energy Services said: "This contract is a demonstration of the confidence international oil companies have in our personnel’s technical capabilities and the local terrain know-how and ability to drill oilfields within the Niger delta region. We are confident of delivering optimum value to NAOC in order to meet their drilling objectives within the stipulated time".

The Group Chief Executive Officer, Oando PLC, Mr. Wale Tinubu, in his comment said: "This deal is a major milestone for Oando and a triumph for the local content drive in Nigeria. We are pleased with this achievement, as it is a validation of our diversification strategy from the downstream to a fully integrated energy company. This partnership with Agip will see our rigs business significantly contribute to our earnings whilst assuring our shareholders of an immediate return on investment."