2010 Business Development Updates

We are into the second half of 2010 and would like to present a state of affairs from the Marketing and Business Development perspective. GDI had contracts for all our 5 rigs coming to an end this year. The initial forecast was showing very low utilization since we did not have contracts in hand 

Fortunately we can report that contracts extensions for two rigs have already been signed, and two more are in the process of being signed. We have just one rig remaining without a contract, and are hoping to find work for it, once we complete upgrades in the shipyard. Current contracts status is:

 1.Al-Doha                           Extended with Qatar Petroleum for 3 years 

2.Gulf-3 (Al-Wajbah)            Etended with Occidental of Qatar for 2 years 

3.Al-Zubarah                      To be extended with Qatar Petroleum for 1-1/2 years 

4.Al-Khor                         Current work scope concludes by end September 2010. The rig will then drill for Shell Qatar on a two year contract for appraisal wells 

5.Gulf-2 (Al-Rayyan)         Shipyard upgrade work in Sharjah till end September. GDI are hopeful of securing a contract for the rig by that time 

GDI are vigorously pursuing their diversification plan and have identified a number of viable opportunities. The paint project for QP is still awaiting a target start-up date, but GDI’s preparations have made tremendous progress and a number of changes will be incorporated once we have the client’s approval to proceed.  

In addition GDI have gathered sufficient support from potential clients and our Board of Directors to pursue opportunities in the accommodation barge markets specifically targeting North Field activity. GDI are promoting their Shared Assets Concept idea and see a sizable market for the new sector to complement our traditional drilling rig business.   

Though the market is passing through its low cycle this year, we see glimmers of growth looking forward. In our effort to serve the market with most suitable equipment, we are investing in our older rigs to make them more attractive to clients. We are simultaneously exploring the market for new rigs with designs that offer the best solution to our clients. We are committed to our goal of increasing our market share of the Qatar offshore rigs and enjoy the full support of our shareholders. We predict that by the year end, GDI would be in position to show substantial progress in diversifying its product range