Trinidad Drilling idle in Mexico on Pemex slowdown

Thursday, August 8, 2013

Canadian company Trinidad Drilling failed to receive renewals on contracts that expired end-June for its three rigs operating in Mexico as national oil company Pemex reduced activity, the firm said in a quarterly webcast.

"We believe this reduction in activity by Pemex is temporary and expect work to resume by late 2013 or early 2014 with the possibility that additional equipment may be required in the area," CEO Lyle Whitmarsh said in the webcast.

The three rigs will remain idle in Mexico as the firm evaluates opportunities.

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However, Mexico performed well for the firm in the second quarter.

"Our Mexican operations performed well in the quarter, contributing stable activity, revenue and margins, which has been typical of these rigs over the past few years," the executive said.

Operating income from the US and Mexico was Cdn$47.6mn (US$46.1mn) in Q2, down from Cdn$55.6mn in the year-ago quarter as the number of operating days fell 13.4% over the period, mostly in the US.