SED Energy Holdings, a company recently created through the merger of SeaBird Exploration and Energy Drilling, has signed a contract with Thailand’s PTTEP for one of its drilling rigs.

The contract, awarded to the company’s wholly owned subsidiary Energy Drilling, is for an offshore drilling campaign using the 2014-built EDrill-2 tender-assist drilling rig. The signing of the deal follows a letter of intent received in late May.

The deal will last for five years, with an additional three-year optional period. It is scheduled to begin in October 2025. It includes a rate adjustment clause based on a market index, applicable during the final two years of the firm period and throughout the optional period.

The contract could potentially contribute to the company’s backlog with a total value of $250m, assuming the full exercise of the option period and upward index adjustments.