Allis-Chalmers eyes Persian Gulf

Houston-based Allis-Chalmers Energy chief executive Munawar “Micki” Hidayatallah plans to enter the Persian Gulf market.

The first round of meetings with Saudi Arabian Oil company executives and state producers in neighbouring countries were held in late May. He said more rigs and drilling fluids would be needed in the region in the next several years to keep oil flowing from decades old fields. “As their fields mature they’re going to need more equipment, more technology and more people to continue to produce at the same rate they’re producing today,” he told. The Saudi kingdom wants to boost oil production to 12.5 million barrels a day in the next year after output fell 5% last year to 8.48 million, according to the International Energy Agency. Hidayatallah, said he also will seek contracts in Iran and Iraq, which need rigs and better well casings to counter “heavy depletion and inefficiency” in their reservoirs after decades of neglect.

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