KCA Deutag provides update on Latin America business

6 March 2024

KCA Deutag, a leading drilling, engineering and technology partner, has provided an update on its operations in Latin America, ten months after it acquired Saipem Onshore Drilling’s Latin America business.

The acquisition which was completed in May 2023 saw KCA Deutag acquire 441 rigs in the region across Peru, Ecuador, Colombia, Bolivia, Chile and Venezuela.

Argentina, the last remaining country in Latin America to close, is expected to be completed soon once registration formalities have been concluded, adding a further three rigs to KCA Deutag’s fleet.

The company has recently secured three new one-year contracts for 3000hp rigs, two in Colombia and one in Bolivia. These awards add to the previously announced one-year contract for a rig in Ecuador and a workover contract in Peru since KCA Deutag took over the business, and results in 100% rig utilisation in Columbia.

Simon Drew, President of Land at KCA Deutag, remarked: “We look forward to the completion of the transaction in Argentina to further strengthen our position in Latin America where we are seeing improved utilisation of key assets across the region. This is demonstrated by the fact that with the addition of the new contracts, we will have contracted utilisation for 80% of our heavy land rigs (2000hp or larger) which are the key assets for driving the performance of the business.

“Over the last ten months we have spent valuable time with customers in every country, discussing operational requirements and explaining how we are proactively collaborating with our colleagues across Latin America to #becomeoneteam and deliver a seamless transition to all customers. Outstanding safety records in the region and our successful integration efforts have strengthened relationships with local customers and resulted in improving utilisation in several countries.

“There are additional opportunities for our Land drilling business as well as our technology and energy transition focused Kenera business unit. Furthermore, given the fleet we have available in Venezuela, we are closely monitoring the sanctions situation in the country and have been responding to enquiries from international operators.”

1 Includes 17 rigs which are currently idle and inactive in Venezuela.

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