KCA Deutag wins $110 million of new business in land drilling market
29 March 2021
KCA Deutag has secured contracts worth around $110 million for its Land Drilling business in Pakistan, Russia, Kurdistan, south-eastern Europe and Germany.
The new business is made up of a mix of contract wins, allowing us to mobilise stacked rigs, and contract extensions.
The Group has secured a new five-year contract with a major oil company for operations in south-eastern Europe. The rig will start drilling operations in 2022 following mobilisation from the UAE. Including options periods, the total contract value is $75 million. Also in Europe the T46 rig is mobilising for a single well contract valued at $3m.
In Pakistan, contracts worth over $12 million have been placed for three rigs. The first of these is for the previously stacked T72 rig to undertake a workover. The second covers the T202 rig which is mobilising from the UAE and the third is for the T75 rig which is in country but has been stacked for some time. Two of these contracts are with new clients in Pakistan.
In Russia, contracts for four client owned rigs, on which we provide Operations and Maintenance services, have been extended from October this year to March 2022. Additionally, a new work order has also been secured for the T391 rig this year for a further 8 wells during the remainder of 2021. The total contract value is over $13 million.
A new $7.4 million contract has also been secured in Kurdistan to mobilise the T63 rig with a client we were operating for prior to the Covid pandemic.
Simon Drew, President of Land, said: "We are delighted to have been awarded these contracts and contract extensions, which build on our long-standing relationships with a number of key customers in important territories for the Group.
"At the same time, we continue our development and deployment of our Well of Innovation technologies to improve the value we deliver to our oil and gas clients. This contributes to our ability to secure contracts such as these.
"Alongside this, we have and are developing new technologies as we leverage our Group-wide operating, manufacturing and engineering capabilities to make our rigs more energy efficient while at the same time move into renewable energy applications as the energy transition gathers pace and scale."
For more information please contact:
Linzi Punton, Group Head of Communications, Tel: +44 (0)1224 987000