BP awards KCA Deutag $220 million contract for newbuilds

BP has awarded KCA Deutag a five-year, $220-million contract for the construction and operation of three fast-moving land rigs in Oman. Including options, the contract is valued at $340 million. Bentec will manufacture the three newbuilds, and drilling will commence in Q4 2014.

Currently, KCA Deutag operates seven rigs in Oman ranging from 750-3,000 hp. The contract represents a business growth opportunity for Oman, which has plans to further increase its oil and gas production levels. The specification of the fast-moving desert rigs improves both safety and drilling performance, which will reduce the total drilling cost for BP.

“BP Khazzan is a very high profile development within Oman and the broader Middle East. Given the desire for best in class drilling efficiency and safety, we are extremely excited to be partnering with BP on this project,” Andy Hendry, president of land division for KCA Deutag, said. “KCA Deutag is also looking forward to promoting local content and in-country value for Oman in the way that we work.”