KCA Deutag Secures $379 Million in Middle East Contracts
Posted 28/09/2023 13:45
KCA Deutag, a drilling, engineering, and technology company headquartered in Aberdeenshire, Scotland, has announced significant contract wins and extensions in the Middle East, with a total value of $379 million. These contracts cover land drilling operations and involve both existing and new customers across Saudi Arabia, Oman, and Pakistan.
In Saudi Arabia, KCA Deutag has received contract extensions and an equipment upgrade project worth $292 million. These extensions span a total of 23 additional years of work across four rigs. The equipment upgrade project includes the installation of mechanized catwalks on two rigs, aimed at enhancing safety and operational performance.
In Oman, the company has extended two existing contracts and secured a new contract, totaling $78 million. Two rigs in Oman have secured extensions for one- and two-year contracts, while a third stacked rig has been awarded a new three-year contract, with the potential for extensions that could stretch it to five years.
Additionally, KCA Deutag has completed the construction of the first two automated new build rigs in Oman, which are undergoing commissioning and will soon be mobilized to their initial locations. The design of the next two rigs has also been finalized, with construction underway for rig delivery in 2024. These four rigs are part of a 10-year drilling operations contract secured in January 2022.
Furthermore, in Pakistan, one of KCA Deutag's rigs has secured a new $9 million one-year contract with an existing customer in the country.
Simon Drew, President of Land at KCA Deutag, emphasized the company's commitment to sustainable growth in the Middle East and its dedication to safety and operational excellence in delivering drilling programs and solutions for the energy transition in the region.
KCA Deutag operates in 23 countries and employs over 10,500 people, offering drilling, engineering, and technology services to the energy industry.