KCA Deutag showcases first rig built in the Sultanate of Oman at ceremony for PDO

KCA Deutag, a leading drilling, engineering and technology partner, has unveiled the first locally made rig in Oman at a ceremony held on 29 October 2023 for Petroleum Development Oman (PDO), Oman’s leading exploration and production company.

The rig is the first of four highly automated rigs being designed and constructed by KCA Deutag’s Kenera business unit that will fulfil a 10-year drilling operations contract for PDO secured in January 2022.

The ceremony was held under the auspices of His Excellency Mohsin Bin Hamed Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, and took place where the rigs are being constructed at Kenera’s International Drilling Technology Co. (IDTEC) facility located in Nizwa, Oman, which is the Group’s in-country manufacturing and servicing company.

Designed and constructed by Kenera, the highly automated, fast-moving 1250hp rigs are tailor-made, with a focus on digitalisation, utilising latest technologies, to deliver safe, efficient, and sustainable drilling operations for PDO. Automation of key equipment is enabled via the rig’s central operating system, cyber drilling chair (Synapse) and bespoke software that enhances remote operations capability, improving safety and performance.

Benefitting from the latest plug and play technologies, the equipment deployed includes the in-house manufactured Bentec Top Drive, designed to PDO’s requirements, a remote operated Iron Roughneck and further automated components. The equipment package is enhanced by a mobile and trailer mounted system enabling high speed and safe rig moves between drilling locations.

As a partner to PDO since 1964, the KCA Deutag Group has a long history in the country and has demonstrated its commitment to the growth of the economy in the Sultanate of Oman with an investment of approximately $100 million for Kenera to build the new rigs in-country. The high In-Country Value (ICV) of the project has seen the company spend approximately 40% of its investment in subcontracting significant work, including construction and commissioning, to small and medium sized Omani businesses, ensuring expansion of the local economy.

Simon Drew, President of Land Drilling at KCA Deutag, commented: “We are pleased to have welcomed PDO and Ministry officials to our local facility to showcase the first of four technologically advanced rigs being constructed by Kenera in Oman. We take immense pride in delivering bespoke customer-centric solutions and this project, with its strong emphasis on digitalisation and automation, demonstrates the capability we have in-country and across the Group. As we continue to embrace cutting-edge technologies, these new rigs will deliver lower emissions and contribute to sustainability and energy optimisation in Oman.

“We believe this project holds the highest ICV of any rig construction project in the history of Oman. Our commitment to providing in-country value in Oman is demonstrated by our investment in the economy and people with Omani nationals representing 92% of our local workforce. This also extends to establishing the next generation of talent through the launch of a summer internship programme in partnership with Omani universities for 16 undergraduates.”

PDO External Affairs and Value Creation Director Eng. Abul-Amir Al Ajmi commented: “PDO remains committed to supporting and leading the ICV initiative. We are dedicated to our role in contributing to the growth and prosperity of Oman. Indeed, we cannot emphasise enough, the importance of ICV, particularly for our nation's economy. The significance of ICV goes beyond corporate responsibility; it is the bedrock upon which our national economic aspirations are built.

“We are pleased with our collaboration with KCA Deutag and we look forward to continuing this partnership that will contribute towards fulfilling our ICV and sustainability targets.”