Under the contract, Boart Longyear will use the LM700 model drill rig to drill two injection wells using the dual-tube flooded reverse-circulation technique.

Currently, the first underground salt cavern NGLs storage facility is being built by Magnum in the Rocky Mountain region.

The facility will initially feature two caverns, each capable of storing between 1 and 2 million barrels (mmbbl) of NGLs.

Boart Longyear US/Mexico territory contract manager Jason Lamb said: "With our dual-tube flooded reverse drilling technique, we will be able to penetrate the difficult loss circulation zones that have plagued previous drilling projects in this area for years."

Magnum general manager Samuel Quigley said: "Development of the Magnum NGLs Storage Project demands a drilling services partner with world-class equipment and experienced personnel."

"Boart Longyear was the natural choice to meet the unique challenges of this site."