Like a hurricane brewing in the Gulf of Mexico (GoM), Integradora de Servicios Petroleros Oro Negro blew up suddenly and is set to take offshore Mexico by storm. Founded Feb. 22, 2012, the drilling services contractor is targeting Pemex’s E&P budget of US $22.2 billion per year through 2019.

Oro Negro, or “Black Gold,” just finalized its latest contract on June 26 with PPL Shipyard Pte. Ltd. for two high-specification, 9,146-m (30,000-ft) depth, 15,000-psi working pressure jackup rigs for a total value of $417 million. The Pacific Class 400 jackups are designed to operate in 122 m (400 ft) of water. The rigs incorporate the latest drilling equipment for HP/HT wells and will be delivered in July 2015 and September 2015, respectively.

These rigs bring the total fiscal commitment by the company to $2 billion in less than 1½ years. That level of expenditure will rocket the company into having the largest fleet of premium, high-specification jackups in Mexico.

As the company said in a September 2012 presentation, at the moment there are 30 units contracted by Pemex, which is struggling to increase its rig fleet from 30 to 40 units. The current average age of its fleet is more than 28 years. By 2015 Oro Negro’s average fleet age would be two years.

How did Oro Negro get to this position so quickly? The company was initially capitalized to the tune of $250 million by Ares Management ($100 million), Temasek Holdings ($100 million), individual investors ($30 million), and a sponsor group ($20 million). Its first acquisition on July 31, 2012, was Todco Mexico Inc. for $36 million, which included Platform Rig 3.

Then on Aug. 6, 2012, Oro Negro purchased two Keppel Fels B Class jackups from Jasper Investments for a total of $432 million. The first of these rigs, Primus, was delivered on Nov. 23, 2012, and the second, Laurus, on May 16, 2013. In December 2012 the company ordered two jackups for $434 million from Sembcorp Marine that are scheduled for delivery in 4Q 2013 and 1Q 2014. Two more of the Pacific Class 400 rigs were ordered in March 2013 for $417 million for delivery in 4Q 2014 and 1Q 2015.

The Todco purchase gave the company strong cash flow, with the platform rig contracted until September 2015 at a day rate of $50,000. The acquisition provided access by Oro Negro to leverage Todco’s track record since 2003 and prequalified jackup and platform rig operator status with Pemex, according to the presentation. With Pemex now focusing on local content requirements, Oro Negro certainly plans on making that black gold pay off.

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