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Project Details

Permian Basin Drilling Rig 7‑Z

Full‑Scope Construction of 1,500 HP AC Drilling Rig with Pad Infrastructure

Verge Engineering was contracted by an independent oil and gas operator to construct a complete 1,500 horsepower AC drilling rig and all associated site infrastructure in the Permian Basin. The scope included the rig mast, substructure, mud systems, generator skids, tank batteries, and the well pad itself – a true turnkey energy project. CEO Zachary led the multidisciplinary team through design, fabrication, assembly, and commissioning.

  • START: 2020
  • COMPLETION: 2022
  • TAG: Oil & Gas / Heavy Industrial Construction
BUDGET PRICE $14,800,000

The Challenge of Projects

The remote desert location had no existing utilities, no paved access, and extreme temperature swings from 20°F to 110°F. The operator required the rig to be fully mobile (skid‑mounted for relocation between wells) while still meeting all API 4F, 7K, and 8C standards for drilling equipment. Additionally, a tight 18‑month schedule from groundbreaking to first spud demanded parallel engineering and construction phases.

Project Requirements

  • Verge delivered a 168‑foot mast rated for 1,500 HP drawworks.
  • 30‑foot substructure with 15‑foot clear height for BOP stack.
  • A closed‑loop mud system with five shakers and two centrifuges.
  • The pad included 8,000 CY of compacted fill, a stormwater retention basin, firewater storage, and gravel access roads.
  • Seven generator skids (total 6 MW) and a 20,000‑gallon diesel tank farm were also constructed.
  • All structural steel was fabricated off‑site and assembled in modules.

Project Results

The rig was completed two weeks ahead of schedule and drilled its first well to 12,500 feet with zero lost‑time incidents. Over the next 18 months, the rig was moved three times to new pads, with each move and rig‑up completed in under 10 days – 40% faster than the operator’s previous fleet average. The client awarded Verge a follow‑on contract for two additional rigs based on this performance.