Oil States Secures Fort Hills Accommodations Project
Oil States International, Inc. announced that the Company’s Canadian subsidiaries under PTI Group Inc. (“PTI”) were awarded a contract by Fort Hills Energy L.P. to manufacture, install, own and operate a first-class accommodation facility for the Fort Hills Project in the oil sands region of northern Alberta, Canada. The associated capital expenditures were included in Oil States’ already announced 2008 capital expenditures forecast of US$344 million.
The Fort Hills Project, located North of Fort McMurray, Alberta, is in the heart of the oil sands developments, and the Company’s Fort Hills Lodge is expected to be fully operational by the end of the first quarter of 2009. The 1,016 bed facility will be a combination of executive style suites and dorm style rooms. The Fort Hills Lodge will provide PTI’s full suite of first-class accommodations and services including catering, ancillary and convenience services, internet service, conference rooms and leisure facilities for fitness, entertainment and relaxation.
“The Fort Hills Project allows us to continue our organic growth efforts in Canada and to demonstrate our continued commitment to our oil sands customers,” stated Cindy B. Taylor, Oil States’ President and Chief Executive Officer. “We are pleased to have the opportunity to expand our operations with Fort Hills in the region.”
Fort Hills Energy L.P. is the owner of the Fort Hills Oil Sands Project which includes the Fort Hills Mine and the proposed Sturgeon Upgrader. Fort Hills Energy L.P. is comprised of three limited partners: Petro-Canada, UTS Energy Corporation and Teck Cominco Limited, as well as, general partner Fort Hills Energy Corporation. Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada is the contract operator of the Fort Hills Oil Sands Project.
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. Oil States is organized in three business segments — Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS. For more information on the Company, please visit Oil States International’s website at http://www.oilstatesintl.com.
