Business

Cobra's Power Restoration Contract in Puerto Rico Increased to $445M

The original $200 million contract awarded to Oklahoma-based Cobra Acquisitions has been expanded to approximately $445 million after the company executed an amendment to its existing contract to assist in the restoration of the utility infrastructure on the island of Puerto Rico.

OKLAHOMA CITY, Jan. 29, 2018 (GLOBE NEWSWIRE) -- The contract amendment created by Cobra, a subsidiary of oilfield service company Mammoth Energy, and the Puerto Rico Electric Power Authority (PREPA) added approximately $245 million to the original $200 million contract executed on Oct. 19, 2017.

The original contract was fully utilized during the fourth quarter of 2017 due to the substantially greater deployment of resources.

The additional funding allows for continued deployment of resources into 2018.

Under the terms of the amended contract, the number of skilled workers requested by PREPA and provided by Cobra has increased to at least 880, up from 434, and the billable daily rate of those workers has been decreased. 

Arty Straehla, Mammoth's Chief Executive Officer, said, "We are proud that through our team's hard work and professionalism PREPA has elected to increase the value of our contract. Our team is working closely with PREPA, FEMA, the US Army Corps of Engineers and other governmental agencies and, together, we are making significant progress to restore power to the affected areas in an orderly fashion.

“Furthermore, at the request of PREPA, FEMA reviewed our original contract with PREPA and our rates of service. In a letter dated December 23, 2017, FEMA determined that PREPA awarded our contract in compliance with emergency procurement provisions of the Commonwealth of Puerto Rico and Executive Orders issued as a result of the disaster, and also determined the costs under the contract to be reasonable."