KCA Deutag secures $460m of land drilling contracts in the Middle East, Africa and Europe

Global drilling and engineering contractor KCA Deutag announced that its land drilling operation has won new contracts. RDS, KCA Deutag’s engineering and design unit, reported last Tuesday that it has won a contract. Global drilling and engineering contractor, KCA Deutag, has been awarded two services contracts with BP Exploration. It is approximately $460m in the Middle East, Africa and Europe. KCA Deutag, one of the world’s leading drilling and engineering companies, reported that it has secured a contract with Brunei Shell Petroleum (BSP). Company announced Sunday that the company’s Platform Services division had made its entrance.

Drilling services firm KCA Deutag reported last Friday that it has been awarded two offshore contracts. Drilling services firm KCA Deutag announced Tuesday that it has won “significant” drilling operation. The Norwegian Petroleum Association (OLF) has averted a strike by offshore drilling workers. KCA Deutag announced it has acquired Global Tender Barges Pte Ltd (GTB) by increasing its shareholding from 10 to 100%. Woodside Energy has selected KCA Deutag, one of two drilling contractors, to carry out a major Front End Engineering Design (FEED) contract. Following the announcement made in March that a Middle East client had reserved three rigs for an option period.

“We are very pleased to have won this long term contract award for all of BP-operated platforms”, Holger Temmen, KCA Deutag’s Chief Executive said.

KCA Deutag has been awarded a flagship six-rig contract by BP as operator of the Azeri-Chirag-Gunashli. On November 10, 2010, Toreador’s strategic partner, Hess Oil France (Hess), executed an agreement with KCA Deutag. The company confirms that these have subsequently been contracted for two years. It perform detailed design of a drilling facility for an offshore platform. Company have a combined value of approximately $1 billion, including all options. One of the largest energy companies in Asia for the construction and operation of a new build land rig in Brunei. Canadian drilling sector following the award of its first contract in Canada.

The Gabon deal is with Tullow Oil Gabon and will see KCA’s Ben Rinnes rig drill two wells. The maintenance contracts for work in the North Sea with Total, EnQuest and CNR International. They have also been equipped with FX-Control, a newly launched +veDRILL technology. KCA said it has been awarded a contract with Total E&P UK to provide drilling operations and maintenance services. GTB based in Singapore owns three self-erect tender barges, the Global Emerald, Global Jade. The contract, which is for a primary period of five years with the option to extend by up to a further five years. In Oman, the company won a three year contract extension, which commences in 2021.

It provision of drilling and related services for the initial six firm wells targeting the Liassic shale oil source rock system. The five rigs operating for one of the country’s leading exploration and production companies. The first contract has been awarded to the company’s offshore division and is for the operations and maintenance of seven platforms. KCA Deutag was awarded the Hebron Platform drilling operations and maintenance services contract. These rigs are currently being upgraded with the group’s latest equipment automation features. Both contracts, set to last for two years with potential extensions of up to two years, have already begun.

These aim to remove people from the red zone and reduce invisible lost time. It’s relating to a 3,000HP Modular Platform Drilling Rig (MPDR) for the Browse Liquefied Natural Gas LNG Development offshore northwest Australia. On last Friday, Industy Energi announced a strike among 159 Norwegian oil drilling workers would go ahead on Sunday. The MPDR will be capable of drilling large bore gas wells up to 29,528 feet (9,000 meters) measured depth. In addition to this, a rig in Oman has secured a new two year contract with two one year extension options. These are the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations.

KCA Deutag also been successful in Iraq where two rigs have had their contracts extended by one year. The transaction will contribute to KCA Deutag approximately US $115 million of annual revenues. The DTUs will be positioned over the Calliance and Brecknock fields, located about 168 miles (270 kilometers) from the Kimberley Coast. The new contract will commence in December 2010. The first well in the series, which is forecast to be spud in January 2011, will be located on the Chateau Thierry exploration permit. By year-end, Woodside expects to obtain environmental approvals, a land access agreement secured.

In Nigeria, the company won a one year contract for one rig with an option to extend by an additional year. The ubstantial EBITDA and will further strengthen the financial profile of KCA Deutag. Once these goals are accomplished, the Browse Joint Venture will be in a position to make a final investment decision. Additionally, three contracts were awarded in Algeria for four rigs in total. After they won a labor court case against OLF, which had challenged the legality of the threatened strike. The Global Emerald is currently on contract to Brunei Shell Petroleum until 1Q 2012 and the Global Sapphire to Petronas, Malaysia until 2014.

The largest is a three year contract for two of these rigs, with a two year extension option. The well will be drilled vertically to an expected total depth of 3,000 meters. But OLF has since announced that a last-minute pay deal was agreed. The Global Jade has recently demobilized from a long term contract with Total in Indonesia and is bid on a number of long term contracts. The other two are for short drilling programs. The primary geologic target of the well is the Liassic section, the top of which is expected to be encountered. KCA Deutag is now one of the largest employers in Azerbaijan. The company is finalizing negotiations with one client.

In the Netherlands, one rig has secured a new contract for a short drilling program with a salt mining company. The contract marks its first detail design award for a new greenfield platform since the 2014 oil price collapse. As part of the contract and to meet the challenging drilling requirements, the rig is being upgraded with a new 750t Top Drive, supplied by Bentec. In Myanmar, Deutag has signed a two-year operating and maintenance drilling services contract. The new deal involves a general pay rise of 4.5 percent backdated to June 1, 2012, as well as a lump sum increase of $627 (NOK 3,641). KCA Deutag’s manufacturer of drilling rigs and oilfield equipment.

“These awards significantly increase KCA Deutag’s contract backlog”, Simon Drew, KCA Deutag’s president of land said.

The deal with EnQuest is for a four-year extension of KCA’s drilling operations. In addition, the drilling workers have secured other rises in incidental payments. The acquisition increases the scale of KCA Deutag’s mobile offshore drilling units (MODU’s) division. The major contract win proves the strength of KCA Deutag and its ability to generate recurring revenue. It is the testament to the strength of our operational capability and reputation in the marketplace. The design and fabrication of the rig will be undertaken by Bentec. The contract will commence with an estimated three year pre-operations phase.

It is also exciting to see the client response to our recently launched Well of Innovation Campaign. RDS is delighted to have won this new contract. It is the number of the new contracts now incorporating different +veDRILL technologies. The award reinforces the importance of our focus on consistently high HSE and operational performance. Company believe it’s strong offering around safe and effective operations. The Eurorig class land drilling rig T-208 drilling will be used for the operations. The West African market continues to be a major hub of activity for the oil and gas industry. It is another reason that company seeing strong demand for our rigs in our core markets.

Facebook Comments