Calgary-based Precision Drilling Corp., operating in the Middle East, has evacuation buses stationed near its rigs, ready to move crews quickly if regional tensions escalate. CEO Carey Ford revealed that the company has already halted operations twice due to nearby military activity.
Operations Amid Conflict
Since the United States and Israel engaged in war with Iran, Precision has maintained seven rigs under contract in Kuwait and Saudi Arabia. The conflict prompted retaliatory strikes across the region, forcing the company to relocate non-essential personnel and keep remaining staff on high alert.
“We've had a couple of instances where we shut down operations for a day, just because activity got a little bit too close to the field where rigs were drilling,” Ford said in an interview. He noted that missiles and drones in neighboring countries sometimes came uncomfortably close to drilling sites.
Ceasefire and Ongoing Risks
A ceasefire between the U.S. and Iran, effective April 8, has reduced immediate hostilities. However, the Strait of Hormuz remains largely closed since late February, disrupting global oil shipments. Ford emphasized that his team maintains constant communication with ground staff to anticipate any escalation and ensure safety.
“We’re in constant contact with our customers, our crews and field leadership about what’s going on to make sure that we’re able to stay ahead of any escalations and keep people safe,” he said.
Dual Impact on Business
The conflict affects Precision in two ways: directly through its Middle Eastern operations, and indirectly via higher oil prices that have boosted activity in North America. The company’s rigs in Kuwait (four) and Saudi Arabia (three) are expected to remain active for the rest of the year.
Ford praised his crews for performing “extremely well in a tough situation, just with the uncertainty about where the conflict might head next.”
Industry-Wide Effects
As energy companies report first-quarter results since the war began, investors are assessing the conflict’s impact. Reports indicate thousands of casualties and damage to key energy infrastructure during five weeks of active fighting.
Precision’s preparedness includes on-site buses for rapid evacuation, a measure that underscores the volatile environment. “There are missiles and drones in neighboring countries, and then sometimes they get close enough to rigs to where you feel like they’re pretty close,” Ford added.
