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KCA Deutag announces its first ever integrated service contract and a significant award for its mobile offshore drilling fleet

KCA Deutag, one of the world’s largest international drilling contractors, announced it has won two major new contracts in Russia and West Africa worth over $80million USD.

The first contract has been awarded to KCA Deutag by Sorovskneft for an integrated well construction service contract for 15 wells in Western Siberia.  This is the company’s first integrated service contract.  In addition to the provision of drilling operations and rig maintenance, KCA Deutag will deliver all other well construction related services such as mud engineering, cementing, completion and testing, together with directional drilling and logging.

The second contract is with CNR International (Cote d’Ivoire) S.A.R.L., for KCA Deutag’s self-erect tender barge (SETB), the Glen Esk, on CNR’s Espoir Phase III project in the Cote d’Ivoire.  The primary contract is for the drilling of eight development wells with the option to extend for up to a further eight wells. The primary period of the contract is expected to take 18 months.  KCA Deutag’s SETB rig, Glen Esk, will mobilise from Singapore in mid-2012 and will arrive on location to commence operations in October.  The Glen Esk, (formerly known as the Al Baraka and Global Emerald), previously drilled on the Espoir field in 2007/2008.

Norrie McKay, CEO of KCA Deutag, said: “Russia and Africa are majors markets for KCA Deutag and winning these contracts is an extremely encouraging start to our next strategic chapter.  The combined drilling services (CDS) will allow us to keep up with demand for turnkey operations in Russia and expand the type of services to other markets.

“I am delighted that we can further strengthen the relationship between KCA Deutag and CNR International.  This is a very exciting award from one of our premier clients.  KCA Deutag currently performs platform drilling services on CNR International’s North Sea platforms and has recently undertaken a drilling program for CNR International in Gabon with its Jack Up rig Ben Avon.

“With our committed workforce and supportive shareholders, we are ideally positioned to capitalise on these global opportunities and continue our formidable growth.”​